Kratos and Orbital ATK Missile Products Division Reaffirm Kratos’ Oriole Rocket Motor Exclusive Rights Agreement
March 20 2018 - 8:00AM
Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS), a
leading National Security Solutions provider, announced today that
its Space and Missile Defense Systems Business Unit in Glen Burnie,
Maryland has reaffirmed its longstanding agreement with
Orbital ATK (OATK) Missile Products Division related to Kratos’
exclusive rights to sell Oriole Solid Propellant Rocket Motors
(SPRMs) for specific market areas, including Missile Defense
related Threat Representative Targets, Suborbital Research and
Sounding Rockets. Kratos leverages its exclusive rights
covered by this agreement to deliver Rocket Systems and Products
for Missile Defense, Hypersonics, Weapon System Research and other
mission critical National Security related areas. Kratos is
currently executing its approximate $11 million contract with a
U.S. Government Agency for the production and delivery of missile
defense related target hardware which includes the Oriole
SPRMs. Kratos’ Space and Missile Defense Systems Business
Unit is a leading provider of threat representative missile defense
targets, hypersonic research vehicles and other systems, products
and solutions to U.S. Government and Allies National Security
agencies.
The Oriole SPRM agreement acknowledges Kratos’
investment in the design of the Oriole SPRM and reaffirms Kratos’
exclusive, world-wide, perpetual, irrevocable, fully paid-up,
royalty-free, non-transferable right and license to use the Oriole
SPRM Design, Oriole SPRM Data and Oriole SPRM Tooling within the
sounding rocket, suborbital research, and target marketplaces. OATK
will not sell Oriole SPRMs to any individual or entity in
competition with Kratos in the sounding rocket, suborbital
research, or target marketplaces as long as OATK is the sole
manufacturer for Kratos of the Oriole SPRM. On a case-by-case
basis, Kratos may allow OATK to sell Oriole SPRMs in the restricted
market areas, subject to mutually agreeable terms and conditions.
Additionally, OATK agrees not to internally fund the development of
a New SPRM, to compete within the sounding rocket, suborbital
research, and target marketplaces leveraging the Oriole design data
and /or Oriole SPRM performance parameters.
Dave Carter, President of Kratos Defense
& Rocket Support Services, said, "Kratos and OATK have agreed
to revised contract language that reaffirms Kratos’ exclusive
agreement with OATK to sell Oriole SPRMs in the sounding rocket,
suborbital research, and target marketplaces. The execution
of this agreement solidifies Kratos’ ability and commitment to
continue to provide U.S. Government Agencies and other customers
with rapidly developed and affordable technology leading systems to
address their missions and requirements."
Eric DeMarco, President and CEO of Kratos, said,
“Kratos’ most valuable assets, in which we have made significant
investments in over the past several years, include our
intellectual property ownership and related license agreements,
which provide Kratos sole source, single source or differentiating
competitive positions. The execution of this latest exclusive
rights agreement for the Oriole SPRM reinforces Kratos’ position as
an industry leader in the threat representative targets area where
we see a significant growth opportunity as a result of the
increasing global proliferation of ballistic missile, hypersonic
and other systems by potential adversaries, and the related
increased U.S. DoD and MDA budgets to address this threat.”
About Kratos Defense & Security
SolutionsKratos Defense & Security Solutions,
Inc. (NASDAQ:KTOS) develops transformative, affordable
technology for the Department of Defense and commercial
customers. Kratos is changing the way breakthrough
technologies for these industries are brought to market through
proactive research and a streamlined development
process. Kratos specializes in unmanned systems,
satellite communications, cyber security/warfare, microwave
electronics, missile defense, training and combat systems. For more
information go to www.kratosdefense.com.
Notice Regarding Forward-Looking
StatementsCertain 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. Although Kratos believes
that the expectations reflected in these forward-looking statements
are reasonable, these statements involve many risks and
uncertainties that may cause actual results to differ materially
from what may be expressed or implied in these forward-looking
statements. 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
31, 2017 and in subsequent reports on Forms 10-Q and 8-K and other
filings made with the SEC by Kratos.
Press Contact:Yolanda White858-812-7302
Direct
Investor
Information:877-934-4687investor@kratosdefense.com
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