REPORT OF INDEPENDENT AUDITORS ON FINANCIAL STATEMENT SCHEDULE To the Board of Directors of Engineered Support Systems, Inc. Our audits of the consolidated financial statements referred to in our report dated December 9, 2003 appearing in the 2003 Annual Report to Shareholders of Engineered Support Systems, Inc. (which report and consolidated financial statements are incorporated by reference in this Annual Report on Form 10-K) also included an audit of the financial statement schedule listed in Item 15(a)(2) of this Form 10-K. In our opinion, this financial statement schedule presents fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements. /s/ PricewaterhouseCoopers LLP - ------------------------------- PricewaterhouseCoopers LLP St. Louis, Missouri December 9, 2003 EXHIBIT 99.3 Engineered Support Systems, Inc. Schedule II - Valuation and Qualifying Accounts (in thousands) Additions ------------------------ Balance at Charged to Charged to Balance at beginning costs and other at end Description of period expenses accounts Deductions of period ----------- --------- ---------- ---------- ---------- ---------- Year ended October 31, 2003 Allowance for doubtful accounts $281 $ 36 $106 $211 Inventory reserves 819 956 985 790 Year ended October 31, 2002 Allowance for doubtful accounts 147 152 5 23 281 Inventory reserves 0 1,125 5 311 819 Year ended October 31, 2001 Allowance for doubtful accounts 113 63 29 147 Inventory reserves