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Kratos Defense Acquires Cyber Security Solutions Leader SecureInfo for $17.5 Million Cash
GlobeNewswire
2011-11-15





  SecureInfo RMS(R) Product to be Integrated Into Kratos' NeuralStar(R)
 Family of Situational Awareness, Cyber Security and Network Operations
      Management Products, Expanding the Compliance Profile Within
       NeuralStar's(R) 360 degrees  Common Operational Picture of
                      Mission-Critical Operations







                                    
 SecureInfo Offers Advanced Products, Services and Training to Mitigate
     Security Risks, Including Critical Areas of Cloud Security and
                          Continuous Monitoring




SAN DIEGO, Nov. 15, 2011 (GLOBE NEWSWIRE) -- Kratos Defense & Security
Solutions, Inc. (Nasdaq:KTOS), a leading National Security Solutions
provider, announced that it has acquired SecureInfo Corporation, a
leading provider of products and solutions for securing cyberspace, for
$17.5 million cash, with the potential for up to an additional $2
million in consideration to be paid if specifically agreed to future
financial objectives are achieved. For the calendar year 2011,
SecureInfo is expected to generate adjusted EBITDA of approximately
$2.5 million.

Based in Northern Virginia, just outside the nation's capital,
SecureInfo is a pure-play cyber security company specializing in
assisting defense, intelligence, civilian government and commercial
customers to identify, understand, document, manage, mitigate and
protect against cyber security risks while reducing information
security costs and achieving compliance with applicable regulations,
standards and guidance. The company offers Strategic Advisory,
Operational Cyber Security and Cyber Security Risk Management services
and is a recognized leader in the rapidly evolving fields of Cloud
Security, Continuous Monitoring and Cyber Security Training. Customers
include the Department of Defense, the Department of Homeland Security
and large commercial customers, including market leading cloud
computing service providers.

In addition to its portfolio of advanced cyber security solutions and
services, SecureInfo has developed and markets SecureInfo RMS(R), a
proprietary commercial off the shelf (COTS) software product that
simplifies and automates the Security Authorization process. By
enabling organizations to create a standardized Security Authorization
program, SecureInfo RMS dramatically reduces the time and cost demands
associated with compliance; supports management reporting; and
facilitates sharing of critical information between agencies and
departments. SecureInfo RMS will be integrated into Kratos'
NeuralStar(R) family of Situational Awareness, Cyber Security and
Network Operations Management products, expanding the compliance
profile within NeuralStar's 360 degrees common operational picture of
mission-critical operations.

"The addition of SecureInfo further boosts our cyber security business
which exceeds $100 million in annual revenue across our products and
product-related service activities," stated Phil Carrai, President of
Kratos Technology and Training Solutions. "Our synergies could not fit
better with SecureInfo as it enhances both the Technology and Training
sides of our business. SecureInfo's sole focus is cyber security, and
the company's deep knowledge of front-line cyber security issues will
help us advance the NeuralStar products, as well as our cyber warfare
solutions and the security capabilities built into the satellite
communications products from our recently acquired Integral Systems
group. Additionally, as recognized experts in Continuous Monitoring and
Securing the Cloud, SecureInfo will be a key component in helping
Kratos deliver advanced solutions for these key growth areas."

"We are extremely excited to be combining forces with Kratos," said
Christopher Fountain, President & CEO of SecureInfo. "Our deep cyber
security domain expertise is highly complementary to the Kratos
Technology and Training Solutions business and other businesses within
Kratos. In addition, the combined companies enjoy strong customer
relationships across the U.S. Army, the U.S. Air Force, the Department
of Homeland Security, the Department of Education and many other
agencies. Most importantly, Kratos shares our passion for securing
cyberspace in support of each customer's mission and will allow us to
more rapidly expand the number of customers we serve."

B. Riley & Co. LLC acted as Kratos' exclusive financial advisor for
Kratos' acquisition of SecureInfo. Bryant Riley, B. Riley & Co.'s
Founder and Chairman, provides strategic advice to Kratos and assists
Kratos in the execution of its strategic business plan.

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS) is a
specialized National Security technology business providing mission
critical products, services and solutions for United States National
Security priorities. Kratos' core capabilities are sophisticated
engineering, manufacturing and system integration offerings for
National Security platforms and programs. Kratos' areas of expertise
include Command, Control, Communications, Computing, Combat Systems,
Intelligence, Surveillance and Reconnaissance (C5ISR), satellite
communication systems, unmanned systems, cyber warfare, cyber security,
information assurance, critical infrastructure security and weapons
systems sustainment. Kratos has primarily an engineering and technical
oriented work force of approximately 3,900, many of whom hold an active
National Security clearance, including Secret, Top Secret and higher.
The vast majority of Kratos' work is performed on a military base, in a
secure facility or at a critical infrastructure location. Kratos'
primary end customers are United States Federal Government agencies,
including the Department of Defense, classified agencies, intelligence
agencies and Homeland Security related agencies. News and information
are available at www.KratosDefense.com.

The Kratos Defense & Security Solutions, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3519

Notice Regarding Forward-Looking Statements

Certain statements in this press release may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are made on the basis of the current beliefs, expectations
and assumptions of the management of Kratos and are subject to
significant risks and uncertainty. Investors are cautioned not to place
undue reliance on any such forward-looking statements. All such
forward-looking statements speak only as of the date they are made, and
Kratos undertakes no obligation to update or revise these statements,
whether as a result of new information, future events or otherwise.
Factors that could cause actual results to differ materially from the
forward-looking statements contained herein include, but are not
limited to: any operational or cultural difficulties associated with
the integration of the businesses of Kratos and SecureInfo; potential
adverse reactions or changes to business relationships resulting from
the acquisition; unexpected costs, charges or expenses resulting from
the acquisition; litigation or adverse judgments relating to the
acquisition; the failure to realize synergies and cost savings from the
transaction or delay in realization thereof; and any changes in general
economic and/or industry-specific conditions. For a further discussion
of risks and uncertainties that could cause actual results to differ
from those expressed in these forward-looking statements, as well as
risks relating to the business of Kratos in general, see the risk
disclosures in the Annual Report on Form 10-K of Kratos for the year
ended December 26, 2010, and in subsequent reports on Forms 10-Q and
8-K and other filings made with the SEC by Kratos.


CONTACT: Press Contact:
         Yolanda White
         858-812-7302 Direct
         
         Investor Information:
         877-934-4687
         investor@kratosdefense.com





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