HBE Henry Bros Electronics (MM)

Imperial Capital announced today that it has acted as Henry Bros. Electronics, Inc.'s (NASDAQ: HBE) financial advisor and rendered a fairness opinion to the HBE Board of Directors in connection with the approval of the transaction by the board. Henry Bros. has entered into a definitive agreement with Kratos Defense & Security Solutions (NASDAQ: KTOS) to acquire all outstanding shares of HBE common stock for a purchase price of approximately $45 million in cash, or $7.00 per HBE share of common stock. "This transaction combines two leaders in the defense and security solutions market, creating a great opportunity for our organization, customers and shareholders," stated Jim Henry, President and CEO of HBE. "As a much larger organization, the combined company will be better able to establish a presence in targeted markets with the potential for significant growth opportunities, as well as enhanced service opportunities in certain key markets and industries."

"This is truly an exciting transaction because it creates a leading independent security systems integrator targeting marquee government and commercial projects," said Michael McManus, Managing Director at Imperial Capital and lead investment banker on this transaction.

"This transaction exemplifies how Imperial Capital's expertise in merger and acquisition execution, combined with deep knowledge of the security industry results in a very successful outcome for our clients," added John Mack, Co-head of Investment Banking.

This transaction is expected to close by the end of 2010 and is subject to a 40 day "go-shop" period to solicit alternate superior proposals.

About Imperial Capital, LLC

Imperial Capital, founded in 1997, is a full-service investment banking firm with offices in Los Angeles, New York, San Francisco, Minneapolis, Boston and Houston. The firm currently employs over 170 professionals and offers a wide range of proprietary products and services to institutional investors, middle market companies, and private equity firms. Imperial Capital provides institutional clients research and sales and trading of high yield and distressed debt securities, bank debt, convertible bonds, preferred stocks, and equities. The firm provides middle market companies and financial sponsors with capital markets, merger and acquisitions, capital structure, restructuring and recapitalization advisory services. More information about Imperial Capital can be found at www.imperialcapital.com.

About Henry Bros. Electronics, Inc.

Henry Bros. Electronics (NASDAQ: HBE) provides technology-based integrated electronic security systems, services and emergency preparedness consultation to commercial enterprises and government agencies. HBE has offices in Arizona, California, Colorado, Maryland, New Jersey, New York, Texas and Virginia. For more information, visit http://www.hbe-inc.com.

About Kratos Defense & Security Solutions, Inc.

Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) provides mission critical products, services and solutions for United States National Security. Principal products, services and solution offerings relate to and support C5ISR, weapon systems sustainment, military weapon range operations and technical services, network engineering services, information assurance and cybersecurity solutions, security and surveillance systems, and critical infrastructure security system design and integration. Kratos is headquartered in San Diego, California, with resources located throughout the U.S. and at key strategic military locations. News and information are available at www.KratosDefense.com.

For more information regarding Imperial Capital, please contact: Tigist Gessesse (310) 246-3605 tgessesse@imperialcapital.com