DRS TECHNOLOGIES, INC. DRS TECHNOLOGIES, INC. STRATEGICALLY POSITIONED FOR SUCCESS

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DRS TECHNOLOGIES, INC. STRATEGICALLY POSITIONED FOR SUCCESS Mark S. Newman Chairman of the Board, President and Chief Executive Officer 1 April 1, 2008

SAFE HARBOR SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This presentation contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on management's beliefs and assumptions, current expectations, estimates and projections. Such statements, including statements relating to DRS Technologies expectations for future financial performance, are not considered historical facts and are considered forwardlooking statements under the federal securities laws. These statements may contain words such as believes, anticipates, plans, expects, intends, estimates or similar expressions. These statements are not guarantees of the Company s future performance and are subject to risks, uncertainties and other important factors that could cause actual performance or achievements to differ materially from those expressed or implied by these forward-looking statements and include, without limitation, demand and competition for the Company s products and other risks or uncertainties detailed in the Company s Securities and Exchange Commission filings. Given these uncertainties, you should not rely on forward-looking statements. Such forward-looking statements speak only as of the date on which they were made, and the Company undertakes no obligations to update any forward-looking statements, whether as a result of new information, future events or otherwise. 2

A DYNAMIC AND ADAPTIVE COMPANY $3.2 billion defense technology solutions and services leader Focused on the growing defense, intelligence and homeland security markets Diverse, skilled workforce of 10,000 Facilities in 27 U.S. states, Canada, the U.K. and Kuwait support customers and other constituents 3

STRATEGICALLY POSITIONED FOR GROWTH DRS provides advanced solutions for increasingly complex global threats DRS has a proven record of sustained, strong performance DRS is highly diversified to minimize risk DRS is aligned with customer priorities & initiatives 4

5 DRS PROVIDES ADVANCED SOLUTIONS FOR INCREASINGLY COMPLEX GLOBAL THREATS

GLOBAL U.S. COMMITMENTS REQUIRE A STRONG MILITARY U.S. Homeland Security Honduras Humanitarian Aid Guantanamo Operations South America Drug Trafficking Europe Preserving Coalitions Balkans Peacekeeping Sinai Peacekeeping Africa Humanitarian Aid Middle East Border Defense Iraq Combat Operations Afghanistan Combat Operations Kuwait Nation Defense South Korea Nation Defense Japan Preserving Coalitions Philippines Promoting Stability >1.2 Million Active Army/Reserve/Civilians Forward Deployed in ~80 Countries 6

DEFENSE NEWS TOP 100 DRS Has the Scale to Address Customer Needs 2006 2006 Defense Total 2005 Rank Company Country Revenues Revenues Rank 1 Lockheed Martin U.S. $ 36,090.0 $ 39,620.0 1 2 Boeing U.S. $ 30,800.0 $ 61,530.0 2 3 BAE Systems U.K. $ 25,070.6 $ 26,967.6 4 4 Northrop Grumman U.S. $ 23,649.0 $ 30,148.0 3 5 Raytheon U.S $ 19,500.0 $ 20,291.0 5 6 General Dynamics U.S. $ 18,769.0 $ 24,063.0 6 7 EADS Netherlands $ 13,202.7 $ 52,018.6 7 8 L-3 Communications U.S. $ 9,989.6 $ 12,476.9 8 9 Finmeccanica Italy $ 9,057.1 $ 16,466.4 11 10 United Technologies U.S. $ 7,652.6 $ 47,829.0 12 11 Thales France $ 6,997.4 $ 13,598.8 9 12 KBR U.S. $ 6,400.0 $ 9,600.0 NR 13 SAIC U.S. $ 5,800.0 $ 8,300.0 13 14 General Electric U.S. $ 4,600.0 $ 15,400.0 14 15 Honeywell U.S. $ 4,400.0 $ 31,600.0 32 16 Rolls-Royce U.K. $ 4,062.3 $ 14,007.8 17 17 ITT U.S. $ 3,659.3 $ 7,807.9 18 18 DCNS France $ 3,564.7 $ 3,564.7 16 19 Computer Sciences Corp. U.S. $ 3,530.0 $ 14,615.6 15 20 ATK U.S. $ 3,066.0 $ 3,565.0 20 21 DRS Technologies U.S. $2,736.5 $2,821.2 28 22 SAFRAN Group France $ 2,640.5 $ 14,958.7 19 23 Saab Sweden $ 2,461.9 $ 3,077.5 24 24 Booz Allen Hamilton U.S. $ 2,449.0 $ 4,000.0 21 25 Mitsubishi Heavy Industries Japan $ 2,354.4 $ 26,024.9 23 7

DRS IS A MARKET LEADER IN KEY TECHNOLOGY AREAS TIED TO DEFENSE PRIORITIES Infrared technology Persistent surveillance Battle management Power technologies Satellite networks and communications infrastructure 8 Troop sustainment and support

9 SUSTAINED, STRONG PERFORMANCE SUPPORTS GROWTH

SUSTAINED, STRONG PERFORMANCE SUPPORTS GROWTH Consistently strong financial performance 10

PROVEN REVENUE TRACK RECORD Strong Organic Growth ($ millions) 5-Year Revenue CAGR 37% 13.9% 13.0% 11.5% 14.3% $3,225* 9.0% $2,821 $1,736 $987 $1,309 FY04 FY05 FY06 FY07 FY08E Total Revenues % Organic Revenues * High end of Company guidance as of February 8, 2008 11

STRONG OPERATING MARGINS ($ millions) 5-Year Operating Income CAGR 37% $308 $323* $193 $143 $103 FY04 FY05 FY06 FY07 FY08E Operating Margin 10.5% 10.9% 11.1% 10.9% >10.0% 12 * Implied high end of Company guidance as of February 8, 2008

SUSTAINED EARNINGS PERFORMANCE 5-Year Diluted EPS CAGR 16% $3.12 $3.31* $2.67 $2.09 $1.76 FY04 FY05 FY06 FY07 FY08E * High end of Company guidance as of February 8, 2008 13

HIGH QUALITY OF EARNINGS ($ millions) Free Cash Flow** Net Earnings from Continuing Operations $113.9 $139.3 $127.1 $125* $137* $101.7 $80.3 $81.5 $58.1 $43.5 FY04 FY05 FY06 FY07 FY08E * High end of Company guidance as of February 8, 2008 ** Net cash provided by operating activities from continuing operations less capital expenditures 14

STRONG CASH GENERATION USED TO REDUCE DEBT 6.0x 5.0x 4.9x 5.2x 5.0x 5.0x 4.7x 5.0x 4.7x 4.3x 4.2x 4.0x 3.7x 3.4x 3.2x 3.1x 3.6x 3.5x 3.5x 3.5x 3.4x 3.5x 3.0x 2.3x 2.3x 2.0x 1.0x 0.0x Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4E Q4E 2004 2005 2006 2007 2008 2009 DRS s target leverage Multiples based on reported figures 15

SOLID NEW ORDER FLOW DRIVES FUTURE REVENUE ($ millions) $4,000 Revenue Net Bookings Backlog $3,000 $2,000 $1,000 $0 FY03 FY04 FY05 FY06 FY07 Bookings/Revenue 1.07x 1.07x 1.10x 1.25x 1.24x 16

HIGH FUNDED BACKLOG PROVIDES COMPETITIVE ADVANTAGE $3,596 ($ millions) $3,038 $2,396 $1,196 $1,315 2004 2005 2006 2007 9 Mos. At March 31, 17

HIGH FUNDED BACKLOG PROVIDES VISIBILITY At December 31, 2007 Air Force 6% Commercial 2% International Military 6% Army Logistics 3% Government Agencies 8% Army Services 3% Army Aviation 6% Army Computers 7% Army Comms 7% Army Soldier Systems 9% Navy/Marine Corps 15% Army Ground 28% 18 Backlog: $3.6 Billion

POSITIONED TO CONTINUE STRONG FINANCIAL PERFORMANCE Number 1 or 2 leadership position in our key markets One of the highest organic revenue growth rates in the industry Strong 10-12% operating margins Excellent free cash flow generation Among the highest book-to-bill ratios in the industry Financial and operational discipline 19

SUSTAINED, STRONG PERFORMANCE SUPPORTS GROWTH Consistently strong financial performance Experienced management team 20

MANAGEMENT AVERAGES 25 YEARS EXPERIENCE IN AEROSPACE & DEFENSE Corporate Office Mark S. Newman Chairman, President & Chief Executive Officer VADM Phillip M. Balisle, USN (Ret.) Executive Vice President, Washington Operations Nina L. Dunn Executive Vice President, General Counsel, Secretary Robert F. Mehmel Executive Vice President, Chief Operating Officer Richard Schneider Executive Vice President, Chief Financial Officer C4I Segment Steven T. Schorer, President RSTA Segment James M. Baird, President Sustainment Systems Segment Thomas G. Cornwell, President Technical Services Segment Mitchell B. Rambler, President 40% FY08E Revenue 23% FY08E Revenue 15% FY08E Revenue 22% FY08E Revenue 21

SUSTAINED, STRONG PERFORMANCE SUPPORTS GROWTH Consistently strong financial performance Experienced management team Large footprint on key military platforms 22

LARGE FOOTPRINT ON KEY PLATFORMS SUPPORTS FOLLOW-ON ON CONTRACTS Technology Insertion, Maintenance, Replacement Vertical Launch System Controllers Marine Fan Coils Family of Q-70 Consoles, CEDS Displays MK 15 Phalanx Close-in Weapon System (CIWS) Thermal Imagers SPS-67 Radar, C-Band Active Array Radar (CBAAR) Fiber Optic Networks Power Conversion, Distribution, Propulsion & Machinery Control Equipment Switchgear Data Link Interface 23 Installation, Technology Insertion, Repair

AVERAGE AGE OF NAVY SHIPS SUPPORT AGGRESSIVE SHIPBUILDING PROGRAM Years 50 Ships in 2000 Ships in 2020 Expected Service Life 40 30 20 10 0 AC Surface Com Attack Subs BM Subs Amphib Ships Combat Logs MW Ships Fleet Aux 24

DRS IS ALIGNED WITH CUSTOMER PRIORITIES FOR SHIPBUILDING New Construction of 47 Ships & Submarines FY09-13 12 12 7 8 8 4 2008* 2009 2010 2011 2012 2013 25 * President s FY09 budget request

LARGE FOOTPRINT ON KEY PLATFORMS SUPPORTS FOLLOW-ON ON CONTRACTS Technology Insertion, Maintenance, Replacement Horizontal Technology Integration (HTI) TOW Visual Modules Improved Bradley Acquisition Subsystem (IBAS) Driver Vision Enhancers Direct Support Electrical System Test Sets (DSESTS) Force XX1 Battle Command, Brigade & Below (FBCB2) Chassis Modernization & Embedded Diagnostics (CMED) 26 Cable Assemblies, Electronics Manufacturing Heavy Equipment Trailers

GROUND PLATFORMS TODAY Support Demand for DRS Products 220,000 220,000 150,000 2008 ~320,000 Vehicles 68,000 100,000 50,000 ~ ~ 14,000 10,000 8,000 4,300 6,000 4,000 4,000 2,000 1,900 1,100 0 600 0 2,700 1,600 600 752 450 0 10 0 FCS M1A2 SEP M1A1 BFV A3 BFV ODS A3 ODS Reset Stryker M113 M109A6 AAV/ EFV LAV CBT SPT Tracks ASV/ MRAP HMMWV JLTV GAP ECV II Medium/ Heavy Trucks 27

GROUND PLATFORMS TOMORROW Support Even Greater Demand for DRS Products 124,000 150,000 2020 ~400,000 Vehicles 120,000 60,000 100,000 23,000 40,000 50,000 ~ ~ 12,000 10,000 8,000 6,000 4,500 4,000 2,000 1,980 1,500 900 1,900 2,100 2,400 2,400 1,000 1,000 950 0 FCS M1A2 SEP M1A1 BFV A3 BFV ODS A3 ODS Reset Stryker M113 M109A6 AAV/ EFV LAV CBT SPT Tracks ASV/ MRAP HMMWV JLTV GAP ECV II Medium/ Heavy Trucks 28

VEHICLE UPGRADE REQUIREMENTS PROVIDE GROWTH OPPORTUNITIES Protection (armor/active/jammers) Sensors (EO/IR/SIGINT) Networked communications Situational awareness picture Vehicle centric (360 ) Battlefield Vehicle diagnostics Power On-board computing 29

SUSTAINED, STRONG PERFORMANCE SUPPORTS GROWTH Consistently strong financial performance Experienced management team Large footprint on key military platforms Opportunities for international expansion 30

MANY OPPORTUNITIES FOR INTERNATIONAL EXPANSION DRS Has Established Facilities in the U.K., Canada, Kuwait U.S. & Canada National Defense & Homeland Security U.K. Ground vehicle & naval equipment Eastern Europe National & Border Defense Israel, Egypt, Jordan, Saudi Arabia, UAE National & Border Defense Kuwait Border Defense India National & Border Defense South Korea Border Defense Japan National & Border Defense South America National Defense Africa Communications Networks/Infrastructure 31

32 HIGHLY DIVERSIFIED TO MINIMIZE RISK

TOP 10 PROGRAMS ACCOUNT FOR <1/3 OF TOTAL REVENUES Largest Program <6% of Revenues FY2008E Revenues Force XXI Battle Command, Brigade and Below (FBCB2) 5.5 % Driver Vision Enhancer (DVE) 5.5 Improved Bradley Acquisition Subsystem (IBAS) 4.2 Defense Comms & Army Transmission System (DCATS) 3.5 AN/UYQ-70 Advanced Display Systems (Q-70) 3.1 Multi-National Forces Iraq (MNF-I) 2.8 Horizontal Technology Integration (HTI) 2.7 Thermal Weapon Sights II (TWS II) 1.8 Tactical Quiet Generators (TQGs) 1.6 Defense Satellite Transmission Service Global (DSTS-G) 1.6 Total Top 10 32.3 % 33

REVENUES ARE DIVERSIFIED AMONG END USERS Government Agencies 13% Air Force 8% Army 57% Commercial 2% International Military 4% Navy/Marine Corps 16% 34 Based on FY08 estimated revenues

CUSTOMER-DIVERSIFIED BACKLOG PROVIDES STABILITY At December 31, 2007 Air Force 6% Commercial 2% International Military 6% Army Logistics 3% Government Agencies 8% Army Services 3% Army Aviation 6% Army Computers 7% Army Comms 7% Army Soldier Systems 9% Navy/Marine Corps 15% Army Ground 28% 35 Backlog: $3.6 Billion

DRS PROVIDES A DIVERSE BASE OF BATTLE MANAGEMENT SYSTEMS Ruggedized computers and command & control Man-portable systems Automated test, diagnostics and prognostics systems Hybrid vehicle electric drive and power management 36

DRS IS A WORLD LEADER IN GROUND, AIR & SOLDIER SENSOR SYSTEMS Thermal sighting & targeting systems Driver Vision Enhancers Portable night vision systems FLIR sensors, detectors, gimbals Surveillance cameras 37

DRS SUSTAINS THE TROOPS IN EVERYTHING THEY DO Heavy equipment transport Environmental control units Refrigerated containers Chemical/biological protected shelters Fuel/water logistics, water purification Power generators, fuel cells Radar systems 38

DRS S S DIVERSE SHIP SYSTEMS SUPPORT SECURITY, STABILITY & SEA POWER Sensor Systems Radar Electro-optical/infrared Processing Computing Environment Combat displays Ship communications Ship networks Ship-air-shore data links Force Protection Harbor and coastal surveillance Precision weapon launch controls 39

DRS HAS POWERED THE NAVY SINCE WW II Power generation, propulsion, electric drives and motors Power conversion, distribution and motor control systems Steam and gas turbines Switchgear, motor pumps Nuclear control panels 40

DRS SUPPORTS GLOBAL VIGILANCE, REACH & POWER PROJECTION FOR THE AIR FORCE Air combat/range training Test range instrumentation Aircraft cargo loaders Deployable power generation systems Electronic warfare threat emitters Close-formation flight equipment Avionics & cargo delivery systems 41

PERSISTENT SURVEILLANCE CAPABILITIES ENHANCE INTELLIGENCE, RESPONSIVENESS, SECURITY Data collection systems SIGINT/COMINT processing Data dissemination equipment Secure communications on the move SATCOM, network services and bandwidth management Unmanned vehicles 42

DRS BUNDLES MULTIPLE TECHNOLOGIES FOR BORDER PROTECTION, HOMELAND & GLOBAL SECURITY Sensors Communications Intelligence Situational Awareness Command & Control 43 Infrastructure

EMBEDDED WITH THE MILITARY, DRS PROVIDES A DIVERSE SPECTRUM OF SERVICES & SUPPORT WORLDWIDE Satellite bandwidth & secure wireless networks Telecommunications & IT Aircraft maintenance Life-cycle product support Training & electronic technical manuals Engineering design, installation, testing, analysis Supply chain management Field services, repair & return Personnel and asset security 44

DRS HAS BUILT A STRONG FOUNDATION FOR CONTINUED GROWTH Attractive fundamentals Long-term contracts in backlog contribute to predictable revenue stream Critical scale enables cross-market opportunities Growing demand for our products and services Alignment with military modernization and future force initiatives 45

PATH TO GROWTH Mergers & Acquisitions New Program Wins, IR&D, B&P Program Expansion Program Retention 46

47 STRATEGICALLY POSITIONED FOR SUCCESS