SAN DIEGO, 4 Jan. 2009. Kratos Defense and Security Solutions Inc. in San Diego has completed its merger with Digital Fusion Inc. (DFI) in Huntsville, Ala., to enhance Kratos's presence in the market for command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR), unmanned aerial vehicle (UAV) products, and modeling and simulation.

The merger also helps Kratos in legacy weapon system life cycle extension, weapons and targets range operations and services, and information technology.

Principal customers of DFI include the Army Aviation and Missile Research, Development and Engineering Center (AMRDEC), Army Space and Missile Defense Command/Army Forces Strategic Command ARSTRAT), and NASA Marshall Space Flight Center. All outstanding shares of DFI common stock have been converted into Kratos stock.

Kratos provides C4ISR, weapon systems lifecycle support, military weapon range and technical services, network engineering services, advanced IT services, security and surveillance systems, and critical infrastructure design and integration.

DFI provides research and engineering, acquisition and business support, information technology and combat development, training, test and exercise technical solutions, and support services.

For more information contact Kratos Defense and Security online at www.KratosDefense.com.