SYS Technologies, Inc. (�SYS�) (AMEX: SYS), a leading provider of information connectivity solutions that enable situational awareness and real-time collaboration, announced two separate agreements today with an unnamed secure defense agency to use dopplerVUE as the management software platform for its networks. These agreements for both products and services are valued at approximately $1.6 million. SYS, which recently signed an agreement to be acquired by Kratos Defense Solutions (Nasdaq: KTOS), noted that the first agreement, valued at approximately $1.1 million, is an expansion of the agency�s current relationship with SYS. The agency currently uses NeuralStar, SYS� flagship network management solution, as the management platform for their large, enterprise networks and will now incorporate dopplerVUE into their network management framework. dopplerVUE has a smaller footprint to better align with the operational needs of the agency, including use with their tactical networks. �The expanded relationship pairing dopplerVUE and NeuralStar is a testament to the underlying architecture and their respective strengths in meeting both strategic and tactical objectives," said Cliff Cooke, CEO of SYS Technologies. "As the nation�s defense comes to rely more and more upon the net-centered applications and communications, assuring the reliability and security of these systems is imperative. SYS is proud to play a role in this essential service.� dopplerVUE is a next-generation network management tool, integrating fault and performance with discovery and automated mapping into a single unified dashboard across devices, applications and services. With superior visibility and advanced monitoring features, dopplerVUE brings the power of advanced features to networks directly supporting the war fighter. The second agreement, a two year services contract, has a base year for 2008 and an option year for 2009. The base year has a ceiling value of $0.5 million, and calls for SYS to provide local and on-site engineering support as well as support for the NeuralStar and dopplerVUE implementations. About dopplerVUE dopplerVUE is SYS Technologies� network management solution for smaller and mid-sized organizations and enterprises. It is an easy to use, quick to install solution that brings management and monitoring features once available only in expensive enterprise solutions. Priced and packaged for even small organizations, dopplerVUE delivers unmatched visibility and self-aware monitoring that helps overburdened management teams extend their reach and effectiveness. For more information, visit www.dopplervue.com. About SYS Technologies SYS (AMEX: SYS) is a leading provider of information connectivity solutions that capture, analyze and present real-time information to our customers in the Department of Defense, Department of Homeland Security, other government agencies and to commercial companies. Using interoperable communications software, sensors, digital video broadcast and surveillance technologies, wireless networks, network management, decision-support tools and Net-centric technologies, our technical experts enhance complex decision-making. We also provide solution lifecycle support with program, financial, test and logistical services and training. Founded in 1966, SYS is headquartered in San Diego and has principal offices in California and Virginia. For additional information, visit www.systechnologies.com. About Kratos Defense & Security Solutions Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS) provides mission critical engineering, IT services and war fighter solutions for the U.S. federal government and for state and local agencies. Principle services include C5ISR, weapon systems lifecycle support, military weapon range and technical services, network engineering services, advanced IT services, security and surveillance systems, and critical infrastructure design and integration. The Company is headquartered in San Diego, California, with resources throughout the U.S. and in key strategic military locations. News and information are available at www.kratosdefense.com. Notice Regarding Forward-Looking Statements This news release contains certain forward-looking statements including, without limitation, expressed or implied statements concerning the Company�s expectations regarding the timing of closing of the acquisition, anticipated benefits to be realized from the acquisition, future financial performance and cash flows and market developments that involve risks and uncertainties. Such statements are only predictions, and the Company�s actual results may differ materially. Factors that may cause the Company�s results to differ include, but are not limited to: risks that the closing of the proposed merger between SYS and Kratos will be delayed or that the conditions to closing will not be satisfied; risks that the integration will prove more costly, take more time, or be more distracting than currently anticipated; risks that the transaction will cause disruption of the Company�s operations and distraction of its management; risks of adverse regulatory action or litigation; risks associated with debt leverage; risks that changes or cutbacks in spending by the U.S. Department of Defense may occur, which could cause delays or cancellations of key government contracts; failure to successfully consummate acquisitions or integrate acquired operations and competition in the marketplace which could reduce revenues and profit margins. The Company undertakes no obligation to update any forward-looking statements. These and other risk factors are more fully discussed in the Company�s Securities and Exchange Commission filings. Additional Information In connection with the proposed acquisition of SYS by Kratos Defense & Security Solutions, Inc. (�Kratos�), Kratos intends to file with the U.S. Securities and Exchange Commission (the �SEC�) a registration statement on Form S-4, containing a joint proxy statement/prospectus and other relevant materials. INVESTORS AND SECURITY HOLDERS OF KRATOS AND SYS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION ABOUT KRATOS, SYS AND THE ACQUISITION. The joint proxy statement/prospectus and other relevant materials (when they become available), and any other documents filed by Kratos or SYS with the SEC, may be obtained free of charge at the SEC�s web site at www.sec.gov. In addition, investors and security holders may obtain free copies of the documents filed with the SEC by Kratos by directing a request to: Kratos Defense & Security Solutions, Inc., 4810 Eastgate Mall, San Diego, CA 92121, Attn: Investor Relations, or by going to Kratos�s corporate website at www.kratosdefense.com. Investors and security holders may obtain free copies of the documents filed with the SEC by SYS by contacting SYS Technologies, Inc., 5050 Murphy Canyon Road, Suite 200, San Diego, CA 92123, Attn: Investor Relations, or by going to SYS� corporate website at www.systechnologies.com. Kratos, SYS and their respective executive officers and directors may be deemed to be participants in the solicitation of proxies from the stockholders of Kratos and SYS in favor of the acquisition. Information about the executive officers and directors of Kratos is set forth in the proxy statement for Kratos�s 2007 Annual Meeting of Stockholders, which was filed with the SEC on October 10, 2007. Information about the executive officers and directors of SYS and their ownership of SYS common stock is set forth in the proxy statement for SYS�s 2007 Annual Meeting of Stockholders, which was filed with the SEC on October 29, 2007. Investors and security holders may obtain more detailed information regarding the direct and indirect interests of Kratos, SYS and their respective executive officers and directors in the acquisition by reading the joint proxy statement/prospectus regarding the acquisition when it becomes available.
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