Agreement Significantly Expands Previous Relationship

Hypersonix Launch Systems Ltd. and Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) announced today an Exclusive Teaming Agreement to provide the Hypersonix DART AE Hypersonic System within the U.S. market, integrated with Kratos’ Zeus family of solid rocket motors. The DART AE is a three-meter-long, single-use, high temperature alloy, hydrogen-fueled, scramjet technology driven, autonomous, multi-mission, air-breathing hypersonic platform used to develop, demonstrate, test and evaluate hypersonic technologies and for “other” potential hypersonic applications. With Kratos’ Zeus and “other” rocket propulsion systems, Kratos and Hypersonix aim to frequently and reliably deliver an affordable, high cadence, high availability, overall hypersonic capable system and vehicle, to the hypersonic customer community.

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Image 2: From left to right: David Waterhouse, MD & CEO Hypersonix, Robert Winkler, Vice President Corporate Development & National Security Programs, Kratos Defense & Security Solutions, Michael Smart, CTO & Head of R&D, Hypersonix, David Carter, President of Kratos Defense & Rocket Support Services. (Photo: Business Wire)

Hypersonix is an Australian aerospace engineering, design and manufacturing company, specializing in hypersonic technology and scramjet engines. Through the Exclusive Agreement with Kratos, Hypersonix intends to significantly expand its presence in the United States and promote the sale of the DART AE system within the U.S. Department of Defense (DoD) and potential other U.S. National Security markets. With the Teaming Agreement, Kratos has also agreed to initially procure up to 20 DART AE systems from Hypersonix, once the combined flight system has been successfully completed and demonstrated.

Kratos is a technology company and a leading provider of innovative systems, products, software and solutions, supporting space and satellite communications, space vehicles and systems, ballistic missile targets, hypersonic systems, sub-orbital research and sounding rockets, high performance, jet powered unmanned aerial drone systems, turbine technologies and propulsion systems, directed energy, laser and other high-power systems. Kratos has made significant investments in launch vehicle and hypersonic technologies, including a focus on enabling affordable testing and “other” missions for National Security related customers, including Kratos’ Erinyes and Dark Fury hypersonic flyers, and Zeus Family of Solid Rocket Motors. Kratos brings significant relevant experience to the partnership with Hypersonix, including having previously launched multiple Australian hypersonic missions in collaboration with the Defense and Science Technology Group (DSTG) and the University of Queensland (UQ), for the investigation of fundamental hypersonic sciences and technologies.

Both Hypersonix and Kratos view the Teaming Agreement as an important step towards rapid future hypersonic flights in the United States. The Kratos/Hypersonix team is focused on providing a first-to-market capability, to test and demonstrate important hypersonic capabilities for U.S. Industry, the DoD and National Security.

David Waterhouse, Hypersonix CEO, said, “We are excited to begin manufacturing and supplying DART AE vehicles to the U.S. market as soon as possible. To team with a demonstrated, proven industry leader like Kratos, to provide this game-changing capability, is a significant step forward for our Company, our stakeholders and the successful execution of our strategy and business plan. We are proud that DART AE will fill an important role, including as a hypersonic test system and platform, collecting critical flight data related to multiple mission applications at hypersonic speeds.”

Dave Carter, President, Kratos Defense & Rocket Systems Division said, “This exclusive partnership and Kratos’ potential procurement of up to 20 DART AE systems, enables the Kratos/Hypersonix Team to be first-to-market with a relevant capability, in support of U.S. and Australia hypersonic initiatives. With Kratos’ Zeus family of solid rocket launch systems, Kratos’ Erinyes and Dark Fury hypersonic flyers, and the DART AE hypersonic vehicle, we can rapidly provide incredible capability to the hypersonic community at an affordable cost.”

About Hypersonix

Hypersonix manufactures and operates hydrogen fueled scramjet powered Unmanned Aerial Vehicles. These provide a modular solution to multiple military and commercial markets.

For more information, please go to https://www.hypersonix.com

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology company that develops and fields transformative, affordable systems, products, and solutions for United States National Security, our allies, and global commercial enterprises. At Kratos, Affordability is a Technology, and Kratos is changing the way breakthrough technology is rapidly brought to market – at a low cost – with actual products, systems, and technologies rather than slide decks or renderings. Through proven commercial and venture capital-backed approaches, including proactive, internally funded research and streamlined development processes, Kratos is focused on being First to Market with our solutions well in advance of the competition. Kratos is the recognized Technology Disruptor in our core market areas, including Space and Satellite Communications, Cyber Security and Warfare, Unmanned Systems, Rocket and Hypersonic Systems, Next-Generation Jet Engines and Propulsion Systems, Microwave Electronics, C5ISR, and Virtual and Augmented Reality Training Systems. For more information go to www.KratosDefense.com.

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. These forward-looking statements are made based on 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 25, 2022, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

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