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Lockheed Martin Awarded Close Combat Tactical Trainer Contract Worth More Than $34 Million

ORLANDO, FL, January 31st, 2000 -- Lockheed Martin Information Systems (NYSE: LMT) has been awarded a $34.6 million contract to exercise an option for production of 51 Close Combat Tactical Trainer (CCTT) modules for the U.S. Army. Under this award by the U.S. Army Simulation, Training and Instrumentation Command (STRICOM), Lockheed Martin Information Systems will perform work in Orlando to be completed by August 2001. The total number of CCTT modules deployed worldwide will exceed 275 with this award.

"CCTT has been providing excellent training for our soldiers by increasing the frequency of training unit collective tasks and accelerating the learning curve to enhance actual field based training," said Major Nick Guerra, Project Director - CCTT Production, STRICOM. "The modifications to the CCTT contract will ensure that units and leaders continue to train in simulators that reflect the actual combat vehicles in the current Army inventory."

"CCTT is the first simulation system to include the Army's entire combined arms team," said Lockheed Martin Information Systems President John Hallal. "This award was based on several factors that include meeting schedule incentives, delivering a high quality product, and achieving significant cost reductions that allow up to $5 million to be returned to the government."

The CCTT System is deployed at six sites worldwide; Fort Hood, Texas, Fort Knox, Ky., Fort Benning, Ga., Fort Stewart, Ga., Camp Casey, Korea, and Grafenwoehr, Germany. Additional modules are planned for installation in 2001 at Fort Carson, Colo., and Fort Riley, Kan. Mobilized CCTT systems, such as the M1A1 Abrams tank and M2/M3 Bradley fighting vehicle, have been deployed to the U.S. National Guard.

The original 1992 CCTT research & development contract, valued at $120 million, called for 38 simulators to be installed at Ft. Hood and 2 mobile platoon sets deployed with the Army National Guard. This effort was followed by a series of developmental contracts leading to the U.S. Army's 1998 $70 million low-rate, initial-production contract for 54 units.

CCTT is the foundation for other training systems, such as the UK CATT (Combined Arms Tactical Trainer), which is currently in development at Lockheed Martin Information Systems' Orlando facility for the United Kingdom's Ministry of Defence.

Lockheed Martin employs approximately 6,500 employees at facilities in Central Florida.

Michael Mulleavey (407) 306-1730 mike.mulleavey@lmco.com