Lockheed Martin Receives $33 Million for Paveway II Precision Guided Systems

Lockheed Martin [NYSE: LMT] has been awarded a $33 million contract to deliver paveway II Laser Guided Bomb (LGB) GBU-12 kits to the U.S. Air Force. Delivery to the U.S. Air Force is scheduled to begin in the first quarter of 2008.

This contract award reflects the U.S. Air Force’s continuous need for paveway II LGBs and highlights Lockheed Martin’s commitment to delivering the most cost-effective precision-guided weapon system.

“Lockheed Martin’s paveway II Laser Guided Bombs set the benchmark for affordability in the precision guided weapon market,” said Daniel Heller, general manager of Lockheed Martin Missiles and Fire Control in Archbald, PA. “The ongoing split-share competition supports the critical industrial base while maintaining the value we brought to the paveway acquisition process. By providing the entire family of paveway II Laser Guided Bombs, Dual Mode Laser Guided Bomb tactical weapons and live-fire trainers, our products are addressing the warfighters’ need for mission readiness and precision engagement.”

Lockheed Martin is qualified to produce and support all three variants of the paveway II MK-80 series LGBs, and has delivered more than 40,000 kits to the Air Force, U.S. Navy and international customers. GBU-12 kits are used on 500-pound bombs, while GBU-10 and GBU-16 kits are used on 2,000- and 1,000-pound bombs, respectively. Lockheed Martin kits can be used by all Air Force, Navy and international aircraft currently authorized to carry and release LGBs. These kits have been used successfully in Operation Iraqi Freedom and the global war against terrorism.

In addition to the paveway II LGB, the U.S. Navy awarded Lockheed Martin a $266 million contract in 2005 to design, develop, qualify and produce the paveway II Dual Mode Laser Guided Bomb (DMLGB) kits, the next-generation precision-guided weapon system equipped with a Global Positioning System-aided/Inertial Navigation System (GPS/INS) for guidance capability in all weather scenarios. Delivery is scheduled to begin fall of 2007.

Lockheed Martin also designs and manufactures the Enhanced Laser Guided Training Round (E-LGTR). The E-LGTR benefits from the unique distinction of being the only worldwide solution for live-fire paveway II training and at 15 percent of the cost of the tactical weapon, it represents the most economical, effective, precision air-to-ground training system. Having completed the Navy’s Performance Enhancement Program in 2006, and receiving a $19 million contract award to deliver enhanced units, Lockheed Martin has delivered more than 40,000 LGTRs to date to Air Force, Navy and international customers.