X0304 4 2012-01-02 0 0001069258 KRATOS DEFENSE & SECURITY SOLUTIONS, INC. KTOS 0001509409 Carrai Phillip D 4820 EASTGATE MALL SAN DIEGO CA 92121 0 1 0 0 President, TTS Division Common Stock 2012-01-02 4 M 0 3000 0 A 8189 D Common Stock 2012-01-02 4 M 0 2000 0 A 10189 D Common Stock 2011-05-27 5 G 0 E 3298 0 A 19394 I by The Carrai Family Trust dated 1/24/2011, Phillip D. Carrai and Angela M. Carrai Trustees Restricted Stock Unit 2012-01-02 4 M 0 3000 0 D 2020-01-02 Common Stock 3000 38999 D Restricted Stock Unit 2012-01-02 4 M 0 2000 0 D 2019-01-02 Common Stock 2000 36999 D Restricted Stock Unit 2012-01-03 4 A 0 30000 0 A 2022-01-03 Common Stock 30000 66999 D Common Stock issued to reporting person pursuant to settlement of vested shares under Restricted Stock Unit grant dated January 2, 2010, where 15,000 Restricted Stock Units granted vest in five equal installments annually beginning on January 2, 2011. Common Stock issued to reporting person pursuant to settlement of vested shares under Restricted Stock Unit grant dated January 2, 2009, where 10,000 Restricted Stock Units granted vest in five equal installments annually beginning on January 2, 2010. Each restricted stock unit represents a contingent right to receive one share of Issuer's common stock. The restricted stock units vest 100% five (5) years from the date of grant, unless earlier vested upon a change in control pursuant to the terms of the restricted stock unit agreement. Includes 4,037 shares held in Issuer 401(k) Plan and 1,152 shares purchased through Issuer's Employee Stock Purchase Plan. Excludes the gross number of shares reported on Form 3 dated January 10, 2011, which were transferred, net of shares tendered for payment of minimum tax liability, to The Carrai Family Trust dated 1/24/2001, Phillip D. Carrai and Angela M. Carrai Trustees. Phillip D. Carrai, by Eva Yee, Attorney-In-Fact 2012-01-04