Paul Hastings Advises Kratos Defense in $155M Acquisition of Composite Engineering

May 11, 2012

San Diego, CA (May 11, 2012) - Paul Hastings LLP, a leading global law firm, announced today that the firm represented Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS), a leading National Security Solutions provider, in connection with an agreement to purchase Composite Engineering, Inc., a manufacturer and developer of unmanned aerial target systems and composite structures used for National Security programs. The agreed purchase price is $135 million in cash and $20 million in Kratos' stock, or $155 million.

M&A partners Deyan Spiridonov and Teri OBrien, led the Paul Hastings team, which also included associates Elizabeth Razzano and Melissa Garcia.

About Kratos Defense & Security Solutions, Inc.: Headquartered in San Diego, CA, Kratos Defense & Security Solutions, Inc. provides mission critical products, services and solutions for United States national security. Principal products, services and solution offerings relate to and support critical infrastructure security system design and integration.

Paul Hastings LLP is a leading global law firm with offices in Asia, Europe, and the United States. We provide innovative legal solutions to financial institutions and Fortune 500 companies. Please visit www.paulhastings.com for more information.