Company Profile

WFI Government Services, Inc. (WFII) is a wholly-owned subsidiary of WFI, with offices and project locations throughout the United States. Areas of expertise include engineering design, systems engineering, weapons systems support and maintenance, integrated logistics, test and evaluation, public safety and communications technology services. Significant customers for WFI Government Services include various military branches of the U.S. Department of Defense, the Department of Homeland Security, NASA, and state and local government agencies. The Company is headquartered in San Diego, California, with resources throughout the U.S. and in key strategic military locations. News and information are available at http://www.KratosDefense.com.

Comments by Robin Mickle, President of WFI regarding the Newsbreak:

"We are extremely pleased to continue our EXMG support at Warner Robins Air Force Base," said Robin Mickle, president of WFI Government Services, Inc. "This has been a mutually beneficial contract for both the government and WFI, and over the years we have expanded our contract services not only to the 402d EMXG, but to other Groups within the Maintenance Wing at Robins as well."

In addition to supporting the ongoing partnership at Robins, specific responsibilities and duties of the subcontract include providing a simultaneously deployed, flexible workforce augmentation capability to the 402d EMXG, which has ranged from 7 to more than 130 technical personnel, whose capabilities are tailored to the specific augmentation capability required. This simultaneously deployed capability includes on site-supervision of eight skill sets ranging from electronic technicians to planners, budget analysts, engineers and administrative support. WFI-deployed capabilities range from complex diagnostics and repair, training, production & facility planning, program management, technical budget support, logistics support analyses, data analyses and general administrative services.

"The recompete contract announced today is a very good indication of WFI's deep customer relationships, quality of services, and of the general strength of our ongoing business," said Eric DeMarco, WFI's president and CEO. "As we have stated recently, WFI is evolving its business for greater predictability and reliability, and the Company's ability to win repeat contracts with the Federal Government is a key aspect of this strategy."

Business Summary:

Wireless Facilities, Inc. provides engineering, information technology (IT) services, and warfighter solutions primarily to the U.S. federal government, and state and local agencies. The company's services and solutions include weapons system life cycle sustainment services with a focus on maintaining, testing, and repairing weapons systems for warfighter to the Department Of Defense and foreign governments; engineering services for various phases of a project lifecycle, including program management, engineering design, systems engineering, C4I System INCO, operations and maintenance, integrated logistics, test and evaluation, security/building mapping, propulsion research and development, advanced telecommunications, and warfare systems training; and range and technical services, including aerial targets operations and maintenance, surface targets operations and maintenance, missile systems operations and maintenance, range operations planning and support, HAZMAT management, supply and logistics support, and manufacturing services. Its services and solutions also comprise security systems integration on various platforms, including digital IP surveillance and security, building automation systems and controls, fire and life safety systems, access control and perimeter protection, and service and maintenance; network engineering services comprising architecture development, design, implementation, configuration, and operation of local area networks, metropolitan area networks, and wide area networks; and IT services, including network operations centers, help desks, system maintenance, system upgrades, configuration management, data warehousing, COTS selection and integration, and high performance computing. The company was founded in 1994. It was formerly known as Wireless Facilities, Inc. and changed its name to Kratos Defense & Security Solutions, Inc. in September 2007. The company is headquartered in San Diego, California.

Mission Statement:

The Company's vision is to be the trusted and innovative provider of advanced engineering, IT services, war fighter solutions and security and surveillance systems that will ensure the security and freedom of our nation and its allies. In so doing, WFI will be the contractor of choice by their customers, their industry’s employer of choice and their shareholders’ investment of choice.

Key Management:

• Mr. Eric M. DeMarco, Chief Exec. Officer, President
• Ms. Deanna Hom Lund, Chief Financial Officer and Sr. VP
• Mr. D. Robin Mickle, President of WFI Gov. Services Inc.
• Mr. James R. Edwards, Sr. VP, Sec. and Gen. Counsel
• Mr. Mike Tiplady, Head-European Middle East and African Business

Significant Press Releases:

• May 8, 2007 -- WFI Government Services, Inc. Wins Recompete for Electronics Maintenance Group Subcontract Valued At Approximately $13 Million
• May 3, 2007 -- WFI Announces Lawsuit Against Former Stock Option Administrator
• Mar 28, 2007 -- WFI Receives NASDAQ Staff Determination Notice Related to Delayed Form 10-K Filing for 2006; Appeal Hearing Requested
• Mar 12, 2007 -- WFI Announces Update on Strategic Actions Previously Announced
• Mar 12, 2007 -- WFI Announces Voluntary Internal Review of Past Practices in Granting Stock Options, Results in Delay in Filing of Annual Form 10-K
• Mar 9, 2007 -- WFI Announces Agreement to Sell EMEA Business to LCC International
• Feb 22, 2007 -- WFI Announces Date for Fourth Quarter and Full Year 2006 Financial Results and Conference Call
• Jan 18, 2007 -- WFI Government Services, Inc. Wins Administrative Support Services Contract at Keyport, WA

SEC Filings:

Edgar search results for all of WFII's recent SEC filings can be found at: http://finance.yahoo.com/q/sec?s=wfii

Key Statistics:

Contact Information:

Technical Analysis

Technical Position: We are bullish WFII for these reasons: (1) The stock broke above its 50-dma after the exciting press release of May 8 was released ("WFI Government Services, Inc. Wins Recompete for Electronics Maintenance Group Subcontract Valued At Approximately $13 Million"). (2) We believe the stock is trading in an upward trending channel. (3) Key technical indicators such as the Relative Strength Index (RSI) and the Moving Average Convergence/Divergence (MACD) suggest WFII should do well in the weeks ahead. And (4) gap resistance is placed between $1.75 and $1.90. This is a very likely target that can be achieved. However, if the company can continue to obtain more government contracts, then a more likely target can be place around $2.3 or possibly higher. WFII is currently trading at $1.37. We assign a three month target price of $2.3 (+68 profit). We suggest a stop loss below support of the upward trending channel at ~$1.25.

Conclusion

Technical analysis and solid company fundamentals paint an exciting future for WFII. The company has just been awarded a major multi-million dollar contract. This speaks volumes for the company and suggests the company is on the right track for outstanding growth in the second half of 2007. If this continues, which we have no reason to believe otherwise, then contracts like this will have a positive impact on future growth potential, and higher revenue and earnings. We believe investors will be rewarded handsomely by a much higher stock price if the company can continue to meet its objectives and strive to fulfill its mission.

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