Lockheed Martin Provides Proven Solutions For Nation’s Missile Defense

BETHESDA, MD, January 3, 2007 -- Lockheed Martin [NYSE: LMT] achieved significant milestones on several critical missile defense programs during 2006, and was the only company to lead the development of new technology for boost-, mid-course- and terminal-phase systems.

“In today’s environment of increasingly aggressive and pervasive missile threats, Lockheed Martin has demonstrated capable products that meet the current needs of our nation and allies,” said David Kier, Lockheed Martin vice president and managing director of missile defense. “We have a strong record of performance and mission success. Several of our missile defense products are operational. These proven elements of the nation’s ballistic missile defense system provide a high level of confidence for other systems we are currently developing to provide even greater protection for deployed troops and civilian populations.”

Lockheed Martin’s operational missile defense milestones in 2006 included:

* Aegis BMD successfully intercepted a separating ballistic missile target using the Aegis BMD 3.6 Weapon System, the latest upgrade with enhanced multi-mission capability. This test was the first to include international participation: The Japanese destroyer Kirishima (DDG 173), equipped with the Aegis Weapon System, tracked the ballistic missile target. The Navy and Missile Defense Agency certified Aegis BMD 3.6 for tactical deployment in August, marking the first system of the BMDS to obtain full certification. An unsuccessful test in December, attributed to an incorrect system setting, is still being analyzed and will be rescheduled this spring.

* Lockheed Martin received a $376 million contract from the U.S. Army Aviation and Missile Command (AMCOM) for hardware and services associated with the combat-proven Patriot Advanced Capability-3 (PAC-3) Missile program. The contract includes production of 112 hit-to-kill PAC-3 Missiles, launcher modification kits, spares and other equipment, as well as program management and engineering services. The initial delivery of the PAC-3 Stockpile Reliability Test Missiles to the U.S. Army marked the first major milestone in the operations and support phase of the program. The PAC-3 Missile conducted two successful flight tests in 2006.

* The Command, Control Battle Management and Communications program (C2BMC) completed over 14 spiral deliveries in 2006 reflecting a very flexible and rapid delivery capability. C2BMC is operational across fourteen time zones and is the “S” in the Ballistic Missile Defense System, integrating the various elements of the entire system. The Forward Based X-Band Radar was integrated into the system in 2006 integrating another long range sensor into the overall BMDS. In 2007 C2BMC will start to implement a new requirement for concurrent testing and training across the entire BMDS while simultaneously conducting real world operations, referred to as CTTO.

* MDA’s Targets and Countermeasures program successfully completed three missions in 2006, launching the scientific payloads for two missions of the MDA’s Critical Measurements/Countermeasures program and providing the target missile with a separating reentry vehicle for a test of the Aegis Ballistic Missile Defense Weapon System. The program, for which Lockheed Martin is the prime contractor, has achieved a 100 percent mission success record since launching its first target in 2005.

Lockheed Martin’s next-generation capability milestones in 2006 included:

* Lockheed Martin was awarded a $619 million contract from the Missile Defense Agency (MDA) to begin production of the Terminal High Altitude Area Defense (THAAD) weapon system. The contract for the first two THAAD fire units includes 48 interceptors, six launchers and two fire control and communications units. The system is scheduled for fielding in Fiscal Year 2009. The THAAD weapon system transitioned from development to production, and conducted two successful flight tests in 2006. The first test demonstrated the entire weapon system, utilizing all major elements of the system and proving its capability. A second test last year resulted in the intercept of a Hera unitary target.

* The performance of the Airborne Laser’s (ABL’s) Beam Control/Fire Control system, developed by Lockheed Martin, a partner in the Boeing ABL team, was confirmed in a series of ground tests inside the aircraft. The tests verified the performance of the illuminator lasers with the Beam Control/Fire Control system, and demonstrated the ability to control the path of the illuminator lasers and the high-energy laser beam as it travels at the speed of light toward its target.

* The High Altitude Airship (HAATM) program made significant progress toward building the prototype vehicle. Successful results from the fabric lifetime cyclic testing proved the prototype design and the battery successfully passed a simulated year of mission flight testing in the environmental chamber. In addition, MDA is preparing to exercise the Technology Improvement Project contract option to evolve key technologies for the operational vehicle.

* Initial testing of the kill vehicle divert thruster for the MDA’s Multiple Kill Vehicle payload system was completed. In the event of an enemy launch, a single interceptor equipped with the Multiple Kill Vehicle Payload System will destroy the enemy lethal reentry vehicle along with any countermeasures deployed to try to spoof the missile defense system.

* A major performance enhancement with the Medium Extended Air Defense System (MEADS) program resulted from changing the baseline interceptor to the PAC-3 Missile Segment Enhancement (MSE) Missile, which significantly extends the operational envelope of the baseline PAC-3 Missile. The Lockheed Martin-led transatlantic MEADS program successfully entered its preliminary design review event cycle that will culminate in design approval during 2007.

* The UK Ministry of Defence selected Team Athena, led by Lockheed Martin UK, as the contractor for the Land Environment Air Picture Provision (LEAPP) program. LEAPP provides the ability to coordinate and strike effectively, by providing accurate pictures and data to land commanders during operations.

Lockheed Martin plays a critical role in all three segments of the nation’s ballistic missile defense system (BMDS) being used today. In addition to the products that comprise its operational defense systems, Lockheed Martin provides the backbone systems that integrate the sensors, command and control, and weapon system elements of the BMDS. The corporation is also focused on next-generational capabilities, and provides targets and other methods necessary for testing system elements.

Lockheed Martin is a world leader in systems integration and the development of air and missile defense systems and technologies, including the first operational hit-to-kill missile defense system. It also has considerable experience in missile design and production, infrared seekers, command and control, battle management, and communications, precision pointing and tracking optics, as well as radar and signal processing. The company makes significant contributions to major U.S. missile defense systems and participates in several global missile defense partnerships.

Headquartered in Bethesda, Md., Lockheed Martin employs about 140,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The corporation reported 2005 sales of $37.2 billion.

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Jennifer Allen

Lockheed Martin

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