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(Nasdaq: KTOS), a leading National Security Solutions provider, announced today that it is consolidating certain of its Modular System Division's (MSD) facilities in a restructuring move, which will result in the closing of Kratos' Charleston Marine Container (CMCI) manufacturing plant.

The facility consolidation is being driven by the need to improve MSD manufacturing efficiencies, operational performance, profit margins and cash flow.

Kratos' areas of expertise include Command, Control, Communications, Computing, Combat and Intelligence, Surveillance and Reconnaissance (C5ISR) systems, satellite communications, electronic warfare, unmanned systems, hypersonic systems, directed and high power energy systems, electromagnetic railgun, missile defense, cyber warfare, cybersecurity, information assurance, and critical infrastructure security. 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.

primary end customers are National Security related agencies. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of and are subject to significant risks and uncertainty, including risks related to product failure, general economic conditions and cutbacks in spending.

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 undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise.

The industry serves users of cellular mobile phones, pagers and other wireless communication devices.

Rapid growth in both the functionality and popularity of mobile phones has fueled annualized revenue growth of 2.8%, reaching an estimated 8.7 billion over the five years to 2015.

consolidating manufacturing platforms-54consolidating manufacturing platforms-61

Increasing investment in these technologies is propelling traditional manufacturing powerhouses of the 20th century back to the top of competition.

Consolidation activity usually signifies an industry in the mature phase of its life cycle, as established operators acquire competitors in an effort to strengthen their market position.

The rationale for consolidation includes greater negotiating power with suppliers and customers, access to new technology and practices and the expansion of product lines.

At the recent India-Germany Summit in Berlin, Prime Minister Narendra Modi committed to transforming India into a major player in global value chains.

Make in India version two is on the anvil to consolidate the ground for further growth in selected manufacturing sectors.




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