KRATOS DEFENSE & SECURITY SOLUTIONS, INC. — Director's Dealing 2017

May 26, 2017

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: KRATOS DEFENSE & SECURITY SOLUTIONS, INC. (KTOS)
CIK: 0001069258
Period of Report: 2017-05-26

Reporting Person: Carter David M (President, DRSS Division)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2017-05-26	Common Stock	M	4000	—	Acquired	92920	Direct
2017-05-26	Common Stock	F	1288	$9.7	Disposed	91632	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2017-05-26	Restricted Stock Units	$	M	4000	Disposed		Common Stock (4000)	Direct

Footnotes

F1: Each Restricted Stock Unit (RSU) represents a contingent right to receive one share of Issuer's common stock.

F2: RSUs were granted and previously reported on a Form 4 filed January 7, 2014. Of these RSUs, 4,000 were released on May 26, 2017.

F3: Shares withheld in a net transaction to satisfy the minimum tax liability, in accordance with Issuer's trading policies, in connection with shares released as reported in this Form 4.

F4: Includes 10,551 shares purchased through Issuer's Employee Stock Purchase Plan and approximately 11,931 shares held in Issuer's 401(k) Plan.