Exelis Services Company Spinoff to be Named Vectrus

McLean, VA Monday, April 1, 2013

Exelis (NYSE: XLS) announced today that the new publicly traded military and government services company that will result from the planned spin-off will be named Vectrus. Exelis previously announced the planned spinoff of its Mission Systems division, currently part of the company’s Information and Technical Services segment, in December 2013.

Vectrus is a blended name derived from the words Vector and Trust. Vector represents strong forward direction, while Trust represents the essence of the new company’s commitment to its customers. A comprehensive roll-out of the new brand will take place at the completion of the spin-off.

"We are pleased to introduce Vectrus today,” said Dave Melcher, president and chief executive officer of Exelis. “While the brand will be new to the market, the experienced Vectrus team will continue to build on a legacy of delivering infrastructure asset management, logistics and supply chain management services, as well as information technology and network communication services, to U.S. government customers worldwide.”

As a pure-play services provider, Vectrus will capitalize on more than 50 years’ experience in the services market. With nearly 7,000 employees currently operating in more than 100 locations in 18 countries, Vectrus is well-positioned to continue to deliver its broad range of capabilities as an independent entity.  

Following completion of the spin-off, Exelis will have greater focus on its four strategic growth platforms:  Critical Networks, ISR & Analytics, Electronic Warfare, and Aerostructures, as well as continue to capitalize on its mature business areas of networked communications and night vision.  The transaction is intended to be tax-free to Exelis and its shareholders and is expected to be completed by the summer of 2014, subject to final approval of the board of directors of Exelis.  Additional information on the spin-off can be found at www.exelisinc.com/transformation.

About Exelis

Exelis is a diversified, top-tier global aerospace, defense, information and services company that leverages a 50-year legacy of deep customer knowledge and technical expertise to deliver affordable, mission-critical solutions for global customers. We are a leader in positioning and navigation, sensors, air traffic management solutions, image processing and distribution, communications and information systems; and focused on strategic growth in the areas of critical networks, ISR and analytics, electronic warfare and composite aerostructures. Headquartered in McLean, Va., Exelis employs about 17,000 people and generated 2013 sales of $4.8 billion. For more information, visit our website at www.exelisinc.com.

Safe Harbor Statement

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 (the “Act”):  Some of the information included herein includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995 (the “Act”). Whenever used, words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “target,” “may,” “could,” “outlook” and other terms of similar meaning are intended to identify such forward-looking statements. Forward-looking statements are uncertain and to some extent unpredictable, and involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from those expressed in, or implied from, such forward-looking statements. The company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the company’s historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to:

  • Our dependence on the defense industry and the business risks peculiar to that industry, including changing priorities or reductions in the U.S. government or international defense budgets; 
  • Government regulations and compliance therewith, including changes to the Department of Defense procurement process; 
  • Our international operations, including sales to foreign customers; 
  • Competition, industry capacity and production rates; 
  • Misconduct of our employees, subcontractors, agents and business partners;
  • The level of returns on postretirement benefit plan assets and potential employee benefit plan contributions and other employment and pension matters; 
  • Changes in interest rates and other factors that affect earnings and cash flows; 
  • The mix of our contracts and programs, our performance, and our ability to control costs;
  • Governmental investigations; 
  • Our level of indebtedness and our ability to make payments on or service our indebtedness;
  • Subcontractor performance; 
  • Economic and capital markets conditions; 
  • The availability and pricing of raw materials and components; 
  • Ability to retain and recruit qualified personnel; 
  • Protection of intellectual property rights; 
  • Changes in technology;
  • Contingencies related to actual or alleged environmental contamination, claims and concerns; 
  • Security breaches and other disruptions to our information technology and operations;
  • Our ability to execute our internal performance plans including restructuring, productivity improvements and cost reduction initiatives;
  • Unanticipated changes in our tax provisions or exposure to additional income tax liabilities; and
  • Ability to execute our internal performance plans, including restructuring, productivity and cost-reduction initiatives.

The forward-looking statements in this release are made as of the date hereof and the company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the company’s historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in the Exelis Inc. Form 10-K for the fiscal year ended December 31, 2013, and those described from time to time in our future reports filed with the Securities and Exchange Commission.

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