X0303 4 2010-10-12 0001069258 KRATOS DEFENSE & SECURITY SOLUTIONS, INC. KTOS 0001183755 CARANO BANDEL L C/O OAK INVESTMENT PARTNERS ONE GORHAM ISLAND WESTPORT CT 06880 1 0 0 0 Common Stock 2010-10-12 4 P 0 98420 10.20 A 465338 I See Note Common Stock 2010-10-12 4 P 0 1580 10.20 A 7469 I See Note Common Stock 267786 I See Note Common Stock 2853 I See Note Common Stock 6427 I See Note Common Stock 255 D Represents shares directly owned by Oak Investment Partners X, Limited Partnership ("Oak X, L.P."). Represents shares directly owned by Oak X Affiliates Fund, Limited Partnership ("Oak X Affiliates, L.P."). Represents shares directly owned by Oak Investment Partners IX, Limited Partnership ("Oak IX, L.P."). Represents shares directly owned by Oak IX Affiliates Fund, Limited Partnership ("Oak IX Affiliates, L.P."). Represents shares directly owned by Oak IX Affiliates Fund-A, Limited Partnership ("Oak IX Affiliates Fund-A, L.P."). Represents shares directly owned by Bandel L. Carano, a Director of Kratos Defense & Security Solutions, Inc. No other Reporting Person has any pecuniary interest in these shares. Remarks Bandel L. Carano is a Director of the Issuer. Mr. Carano is a Managing Member of each of the Oak IX Funds, and a Managing Member of each of the Oak X Funds listed as a purchaser in this Form 4. Oak IX, L.P., Oak IX Affiliates, L.P., Oak IX Affiliates Fund - A, L.P., Oak X, L.P. and Oak X Affiliates, L.P. are not reporting persons on this Form 4 because they are no longer subject to Section 16, as they are no longer 10% owners. Each Reporting Person disclaims the existence of a "group" and disclaims beneficial ownership of any securities (except to the extent of such Reporting Person's pecuniary interest in such securities) other than any securities reported herein as being directly owned by such Reporting Person, and this report shall not be deemed an admission that such Reporting Person is the beneficial owner of any such securities for purposes of Section 16 or for any other purpose. Bandel L. Carano 2010-10-12