INVESTOR PRESENTATIONKratos Defense & Security Solutions, Inc. (NASDAQ: KTOS)

NOVEMBER 2008

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NOTICE REGARDING FORWARD LOOKING STATEMENTS

This presentation will include forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.

These risks and uncertainties include those risk factors discussed in the Company’s reports on form 10-K and 10-Q and other reports filed with the Securities and Exchange Commission.

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Who We Are:

KRATOS AT A GLANCE

Kratos Defense & Security Solutions (NASDAQ: KTOS) is:

� A fast-growing, mid-sized prime Federal Government contractor focused on the large and growing defense, intelligence, homela nd and public safety & security markets

� We primarily provide mission critical engineering, C4ISR, information technology, military equipment reset, and systems i ntegration services

� Our largest customers include the United States Fed eral government, primarily the Department of Defense, and other stat e and local agencies

� Headquartered in San Diego, CA

� Diverse, skilled workforce of ~2,000

� 70% hold active security clearance

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Who We Are:

COMPETITIVE STRENGTHS OF BUSINESS MODEL

Differentiated Expertise

� Kratos has accumulated highly-differentiated expertise primarily in the areas of Weapon Systems Sustainment, Equipment Reset, C4ISR, Military Range Operations & Technical Services, Missile, Rocket and Weapon Systems Test & Evaluation

� Kratos’ business is comprised of two segments focused on federal government and homeland security/public safety

Significant Customer Relationships Include

� Navy, Army, Air Force, Foreign Military Sales, Defense Logistics Agency (DLA), Defense Contract Management Agency (DCMA), White Sands Missile Range (WSMR), State of Indiana, Pacific Missile Range Facilities (PMRF) Hawaii, Dept. of Labor (DOL)

Experienced Management Team

� Management Team has significant federal government experience including substantial M&A and integration experience

� Kratos Executive Team, including CEO, CFO, SVP Strategic Development, VP Operations and M&A, and others, played a primary role in building the Titan Corporation (NYSE: TTN) from ~$100 Million to ~$2 Billion, ultimately sold to L-3 Communications

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Key BRAC Recipient Locations

Who We Are:

COMPETITIVE STRENGTHS OF STRATEGIC BUSINESS MODEL

We are building a business concentrated at Key BRAC Recipient Locations:

� San Diego, Huntsville, Hawaiian Islands, Northern V irginia-Washington DC Beltway, Oxnard, Keyport, Wright-Patterson, White S ands, Key West

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Who We Are:

OUR LOCATIONS ARE A STRATEGIC ADVANTAGE

For Example:

San Diego location is a strategic advantage, positi oning the company to be a dominate player in a key military market

� Large military presence drives one-fourth of economic activity and employment in the region

� Military generates ~$13 billion annually for the region

� Significant Naval presence

� San Diego is a primary BRAC recipient location

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Kratos has developed highly-specialized expertise i n product and solutions directly tied to the priorities of the Department o f Defense:

� Weapon Systems Life Cycle Support & Extension and Equipment Reset

� C4ISR – Command, Control, Communications, Computing, Intelligence, Surveillance, and Reconnaissance

� Military Range Operations & Technical Services

� Missile, Rocket and Weapon Systems Test & Evaluation

� Mission Launch Services

� Advanced Network Engineering

� Information Technology and Network Products and Solutions

� Public Safety & Security Integration and Product Solutions

� Critical Infrastructure Design

� = Unique Differentiators

Who We Are:

STRATEGIC FOCUS AREAS

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Where Kratos is Primarily Focused:INDUSTRY GROWTH DRIVERS

Increased spending on national defense and intellig ence: FY2009 DoD Budget is ~$500 Billion

� Military transformation to a more mobile, more lethal force through Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR)

� Network-centric warfare

� Base Relocation and Closure (BRAC) receiving locations and commands – Follow the funding

� Modeling and Simulation – future

U.S. Arms exports are driving rapid increases in Fo reign Military Sales (FMS)

� Market potential in 2009 is $40 Billion, up 45% since 2007

� Government-to-government buyers include Afghanistan, Saudi Arabia, Morocco, Egypt, Iraq

Federal information technology services market is g rowing

� $83B in 2008, growing to $102B in 2012

� Comprehensive National Cybersecurity Initiative (CNSI) could top $15B over five years

Continued Outlook:

� We believe maintenance and upgrade of weapon systems, range and target opportunities, and C5I work will increase, not decline, as Operation Iraqi Freedom subsides. We also believe the federal IT market will continue to expand due to the aging government workforce and federal government outsourcing trends continue at the current rate.

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BROAD CONTRACT & CUSTOMER BASENO MATERIAL ONE PROGRAM OR CONTRACT CONCENTRATION

The diversified composition of the portfolio provid es for a stable business model

� Federal government contract vehicles are typically 5 years in length and backlog is typically multi-quarter/year in nature

� Federal government contract procurement is approximately 2 years in length and re-competitions are typically 95%+ win rate by incumbent, industry norm

� Kratos’ qualified bid and federal “pipeline” is ~$2 Billion

Fixed Price 53%Cost Plus 22%

Time & Materials 25% Army 19%

Air Force 5%

Navy 32%Other FederalGovt 14%

FMS 5%

State 10%

Majority of Kratos’ Contract Vehicles Are ‘Full and Open Competition’ Prime Contracts

Other 15%

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FEDERAL GOVERNMENT CONTRACTING –INDUSTRY CONDITIONS & INDUSTRY CONSOLIDATION

The federal government contracting industry is bifurcated:

Small and disadvantaged

businessesget set-aside

contracts

Mid-tier federal government service providers

must compete broadly

Defacto, large business, “platform” corporations

get set-asides

SMALL MID-TIER LARGE

Hundreds of Companies

KTOS, NCIT, SXE, DRCO L3, GD, LMTNG, Raytheon

� Mid-tier players can typically respond faster to customer needs than larger-platform businesses� Mid-tier firms can achieve financial leverage on their fixed G&A costs by significantly growing revenues� Fastest growth will come from balanced internal growth, plus an aggressive acquisition strategy, which

will ultimately accelerate internal growth through the attainment of additional customer relationships, contract vehicles past performance qualifications and cleared personnel.

SINT – Acquired (SERCO, 6/08)DRS – Acquired by Finmeccanica (5/08)SYS – Acquired (Kratos, 2/08)Sparta – Acquired by Cobham (1/08)MTCT – Acquired (BAE, 12/07)Scitor – Acquired (Priv. Equity, 10/07)Analex – Acquired by QinetiQ (3/07)

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REPRESENTATIVEWEAPON SYSTEMS� Patriot

� Avenger

� HAWK

� Chaparral

� DMS

� SLAMRAAM

� NASAAMS

� Dragon

� Linebacker

� TOW

� Hellfire

� Hydra-70 (2.75)

� AMRAAM

� UAV & UGV

� Lasers

� Sentinel

WEAPON SYSTEMS TEST & EVALUATIONCAPABILITIES & PROGRAMS

SERVICES� Test Evaluation Master Plan

development for weapon systems

� Threat analysis

� Target analysis

� Lethality analysis

� Telemetry (PCM & PAM)

� Test equipment & instrumentation design

� Safety releases

� Range operations – Short Range Air Defense (SHORAD) Range, NM

� On-site operations for test integration and execution

� Range scheduling

� Test plan development

� Data collection & analysis

� Post-test data reduction & analysis

REPRESENTATIVE CUSTOMERS� U.S. Army� Ft. Bliss Training Center� AMCOM � National Guard� National Training Center� Joint Range Training Center� WSMR� Army T&E Command

� U.S. Air Force� KirtlaåAFB (AFRL)� Eglin AFB

� Joint Exercises (Roving Sands)

� Egypt

� Norway

� Boeing FCS LSI

� Raytheon

� Lockheed Martin

� U.S. Navy� NAWC, Pt. Mugu� PMRF, Kauai, Hawaii� NAVSEA� So. Cal Ranges� NUWC Keyport

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Foreign Military Sales:

LEGACY SURFACE TO AIR MISSILE (SAM) WEAPON SYSTEM ENGINEERING SERVICES

REPRESENTATIVE PROGRAM: Chaparral and HAWK SAM Prod uction, Operations and Maintenance

Contract to produce, upgrade, maintain, andtrain operators for the Chaparral surface-to-air(SAM) missile system in Egypt

Expect additional foreign military sales workfor legacy SAM systems (Chaparral, Hawk)

Will lead to additional Foreign Military Sales(FMS) requirements

We are a preferred alternative to the OEMs

� Priority and Focus

� Cost

� Flexibility

� Legacy system/not state-of-the-art

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WEAPON SYSTEMS RESET

REPRESENTATIVE PROGRAM:

U.S. Army Material Command (AMCOM) Integrated Material Management Center Short Range Missile Directorate

10-year, strategic relationship with Kratos

Provide overall weapon systems services and logistics support to the Short Range Land Combat Systems (SHORLAC) division

� Providing on-site maintenance and training support for units returning/deploying to/from operational readiness; Sustain and maintain contingency equipment

� Prototyping and return/repair engineering servicesfor fielded U.S. Army Weapon Systems & Redstone Arsenal Agencies

� “Rapid Re-targeting” of critical systems components

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MILITARY WEAPONS RANGE & TARGET OPERATIONS, ENGINEERING & TECHNICAL SERVICES

REPRESENTATIVE PROGRAM: Naval Air Warfare Center (NAWC), Pt. Mugu Aerial and Surface Targets O&M

Provide aerial and surface fleet target preparation, mission planning, target flight control, and target recovery for theArmy and Navy. Work includes:

� Weapon System Test and Evaluation

� Aerial and Seaborne Target System development, targeting, lethality assessment

� Fleet Training requirements

� Foreign Military Sales (FMS) test and training requirements

� Homeland Security requirements

REPRESENTATIVE PROGRAM: White Sands Missile Range –Aerial Targets O&M and Missile Systems Test & Evaluation (T&E)� Mission profile planning and rehearsal

� Ordinance handling and target &missile launch functions

� In-flight target and missile control

� Mission success and missile effectiveness,lethality analyses

� Integrated logistics planning and support

� Support equipment maintenance and repair

� Assembly, configuration, launch and recovery and refurbishment activity

� Post flight recovery and mission assessment

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Test, Training and Simulation:

MISSILE, ROCKET AND MISSION LAUNCH SERVICES

Oriole Rocket System

� First newly developed sounding rocket in over 30 years

� Kratos solely owns designs & produces ancillary rocket system hardware

� Kratos has exclusive rights to market Oriole rocket motor for three applications

� Target rockets

� Sounding rockets

� Suborbital research (Hypersonics)

� Kratos & ATK jointly own design & ATK manufactures Oriole rocket motor

This is a proprietary Kratos system

Ballistic Missile Defense Targets

� Kratos has developed & produces low cost Ballistic Missile Defense (BMD) targets

� Hi-Fidelity tracking targets

� Current designs address two defined threat classes, third pending

Mission Launch Services

� Mission Planning

� Mission Analyses

� Flight Systems Analyses

� Launch Operations

� Wind Weighting

� Flight Safety Analyses

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Organic Growth Initiatives and Key Capabilities:

C4ISR ENGINEERING SERVICES

PROGRAM: Space and Naval Warfare Systems Command (S PAWAR)Joint Inter Agency Task Force (JIATF) South –C4ISR Operations Center O&M

Install, upgrade and maintain command, control, communications, combat systems and surveil lance equipment throughout the Southern Hemisphere. Work includes:

� C4ISR equipment installation and validation

� Communications equipment O&M

� Display equipment O&M

� Special equipment installation and validation aboard Allied surface fleet

� Surveillance equipment maintenance, repair and validation

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Network consists of over 200 physical locations, utilizing 300 commercial data circuits, supporting over 11,000 users, 12,000 desktops and 500 servers.

Design, develop, implement and maintain the Enterprise Telecommunications Network for DLA

Federal Information Technology Market:

IT / TELECOMMUNICATIONS NETWORKS

REPRESENTATIVE PROGRAM:DCMA Wide Area Network

REPRESENTATIVE PROGRAM:DLA Enterprise Telecommunications Network

SIGNIFICANT UPSIDE IN CYBERSECURITY & IT/NETWORK PR OGRAMS:Army IT “500-day Plan”� Building the Army’s Network Service Centers

� Putting a new emphasis on cyber operations and preparing for cyberwarfare� Enhancing knowledge management under the direction of a new data chief� Completing elements of the Army’s program objective memorandum for 2010-2015

Air Force – NETCENTS II� Estimated $9B ceiling over five years� Broad-based IT services/product ordering contract vehicle

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Homeland Security:

DESIGN, INTEGRATION AND SUSTAINMENT OFMILITARY SECURITY / SURVEILLANCE SYSTEMS

REPRESENTATIVE PROGRAM: Fort MacPherson, GA� Key strategic BRAC location (ForceCOMM)

� BRAC initiative involves preparing buildings & surroundings

� Retrofit installation of a fire & life safety network in a large, top-secret government communications building

REPRESENTATIVE PROGRAM: Fort Gordon, GA� Development and maintenance of ‘wireless battle lab’ testing facility

� Kratos engaged to manage the facility to test commercial and military hardware in preparation for wireless battlefield applications

REPRESENTATIVE PROGRAM: Fort Stewart, GA� Largest U.S. Army base east of the Mississippi River

� Customer: Directorate of Contracting, Fort Stewart

� Design, installation and three year service contract for a base-wide CCTV surveillance system covering building, training areas and ammunition bunkers, and access control

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Homeland Security:

INTEGRATED SECURITY & SURVEILLANCE

Design, Integration, Sustainment:

� Access Control and Identity Management

� Visitor Management

� Biometrics

� CCTV Surveillance

� Perimeter Protection

� Intelligent Security Guard

� Voice-Activated License Plate Capture – Hot Sheet

� Harbor Security Protection (Above water and underwater)

� Command, Control, and Monitor of fully integrated security program

� Information Assurance-Information Security Protection

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Biometric recognition devicesBased on measurable physical characteristics:� Iris scan, hand and signature geometry, fingerprint,

voice/speech recognitionQuickly, securely associate and confirm an identity with a person

Protection of sensitive assets and access control� Airports, subways, dams, hydro-electric plants, nuclear

power plants, shipping, banking, agriculture, highly-visible targets and national monuments, military resources

� Multiple layers of security and surveillance most effective� CCTV, access control, sensors, perimeter protection,

radar surveillance

EXAMPLE: Large, national data centers� Includes biometrics, access control, perimeter protection

Homeland Security:

DATA CENTERS & STRATEGIC AREAS / ASSETS

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Acquisition Growth Initiatives:

CONTINUED GROWTH THRU ACQUISITION

Acquisitions are a key component of Kratos’ strategy :� Reach new customers, obtain additional contract vehicles and quickly follow changes in government funding and

program priorities

� Positions Kratos for changes due to Base Realignment and Closure (BRAC) activities

� Broadens and improves services and solutions portfolio, key to Kratos’ strategic planning process

� Quickly obtain skill sets that are very marketable, high in demand, and very hard to find

� Better positions Kratos to achieve organic growth goals by expanding and enhancing employee base, contract portfolio, customer relationships, geographic presence and overall past performance qualifications, enabling Kratos to credibly bid on and win larger contracts in the prime contractor role

Primary acquisition currency to be cash/debt, utili zing free cash flow from operations to reduce debt levels and position Kratos for future transactions

� Not adverse to using Kratos stock in the correct circumstance

1. Accretive to EBITDA rate

2. Accretive to Enterprise Value per share

Integration after acquisition is always risky, thou gh somewhat mitigated by majority of employees bein g located at government and customer facilities—minima l operational/ execution integration

� Primarily integration areas are ‘back-office’ functions, such as accounting, treasury, cash management, disbursements, etc., as well as business development activities

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Company Growth:

SINCE 2003, KRATOS’ CAGR RATE IS ~40%

Kratos is arguably one of the fastest growing compa nies in our industry.

� Peer group EBITDA is 7-10%, which Kratos is targeti ng.

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INVESTMENT SUMMARY

Highly-Experienced Management Team � Proven track record of building, acquiring and creating valuable companies and generating growth

Growth Strategy� BRAC locations are Kratos’ major points of presence

� Disciplined execution of growth strategy, including organic growth, while pursuing strategic acquisition targets aligned with DoD priorities

Broad Customer Base Provides Long-Term Stable Busin ess Model� Long-term DoD customers and contract base

� Growing list of non-DoD agency customers

Attractive and Growing Markets

The government market is an attractive investment area because of its stability and steady cash flows� Weapon Systems Maintenance Life Cycle Support & Extension and Equipment Reset

� C4ISR

� Training & Simulation

� Military Range Operations & Technical Services

� Missile, Rocket and Weapon Systems Test & Evaluation and Mission Launch Services

� Public Safety & Security, Including Force Protection & Facility Protection, Biometrics, Analytics, etc.

� Federal Government IT Services, Cyber Security