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Navy Contracts to GES Total More Than $283 Million

MOORESTOWN, NJ, January 13th, 1999 -- Lockheed Martin Government Electronic Systems has received contracts valued at approximately $283 million from the U.S. Navy to provide AEGIS Combat Systems and Vertical Launching Systems. In announcing the contract awards, Joseph D. Antinucci, President of Lockheed Martin Naval Electronics & Surveillance Systems, said, "Our objective is to establish a preeminent position in the marketplace as our country's and the world's best provider of naval electronics and surveillance systems. These awards are key steps along that path." Government Electronic Systems is an operating element of Lockheed Martin Naval Electronics & Surveillance Systems.

Government Electronic Systems has received $180.7 million for the 1999 production of three AEGIS combat systems and support services from Naval Sea Systems Command. The work is part of a multi-year contract, which was awarded last year to GES, to provide 13 AEGIS combat systems. Delivery of the systems will begin in October of 2000 and conclude in 2005. An option for an additional system would extend the agreement to 2007. The total value of the multi-year contract, if all options are exercised, is more than $869 million. The production will be performed in Moorestown, New Jersey.

Lockheed Martin Launching Systems, an operating unit of Government Electronic Systems based in Middle River, Maryland, was also awarded contracts from the Navy for the design and production of Mk 41 Vertical Launching Systems (VLS) and ESSM Quad pack delivery and installation. The Launching Systems contracts are valued at $102.5 million.

The awards consist of an option to an existing multi-year contract for the production of three VLS shipsets for ARLEIGH BURKE-class destroyers, and for design support. In addition, Launching Systems received contracts for the design, production, delivery and installation of ESSM Quad Pack capability. Quad Pack ESSM will allow four Evolved Sea Sparrow Missiles (ESSM) to be installed in a single launching cell. ESSM is a multi-national missile program that is currently under development.

Lockheed Martin Government Electronic Systems is a premier supplier of combat systems to the U.S. Navy as well as other nations around the world and is an operating unit of Naval Electronics & Surveillance Systems, which provides surface ship and submarine combat systems, antisubmarine warfare and ocean surveillance systems, missile launching systems, radar and sensor systems ship systems integration services, and other advanced systems and services to customers worldwide. Lockheed Martin Naval Electronics & Surveillance Systems is the largest business organization in Lockheed Martin Electronics Sector, a leader in the design, development and manufacture of advanced electronic systems for global defense, aerospace, civil and commercial markets. The sector had 1997 sales in excess of $7 billion, and has operating units in the United States, Canada, and the United Kingd

Kathy Baier, 856-722-3006;

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