Kratos’ Aegis Readiness Assessment Vehicle Type B (ARAV-B) Medium-Range Ballistic Missile Target Successfully Engaged, Intercepted by U.S. Guided Missile Destroyers USS Bulkeley (DDG-84) and USS Thomas Hudner (DDG-116) Using Standard Missile 3 (SM-3)

Core Viewpoint - Kratos Defense & Security Solutions, Inc. is actively participating in NATO's At-Sea Demonstration/Formidable Shield 25, showcasing its capabilities in defense technology and contributing to multinational military exercises [1][4]. Group 1: Exercise Participation - The Formidable Shield 25 exercise is the largest live-fire event in the European theater, involving approximately 6,900 personnel from NATO member states [4]. - The exercise includes live-fire events against various unmanned and manned targets, enhancing interoperability among allied forces [2][4]. Group 2: Company Contributions - Kratos' Aegis Readiness Assessment Vehicle Type B (ARAV-B) participated in the exercise, successfully demonstrating its capabilities by being engaged and intercepted by U.S. guided missile destroyers [3]. - The company has been supporting the Formidable Shield Exercise since its inception in 2017, providing aerial drone and ballistic missile targets to improve NATO's integrated air and missile defense [4]. Group 3: Company Strategy and Philosophy - The company emphasizes affordability as a key aspect of its technology, focusing on delivering mission-relevant products rather than traditional financial maneuvers like stock buybacks [4]. - Kratos aims to rapidly develop and field solutions that meet mission-critical needs, positioning itself as an innovative change agent in the defense industry [5].