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Lockheed Martin Awarded $142 Million U.S. Navy Automated Test Equipment Support Contract

ORLANDO, FL, April 18th, 2000 -- Lockheed Martin Information Systems (NYSE: LMT) has reached an agreement with the U.S. Navy worth an estimated $142 million to support logistics operations for its worldwide Consolidated Automated Support System (CASS) assets. The consolidated support pool agreement with Naval Air Systems Command (NAVAIR) and the Naval Inventory Control Point (NAVICP) will combine resources maintained under separate support contracts to reduce inventory, decease sustainment costs and improve the speed with which assets are repaired and returned to service. Additionally, the agreement provides for incentive payments to Lockheed Martin tied to improved reliability of repairable components for the CASS stations. The work will be performed in Orlando through 2007.

"The Lockheed Martin-U.S. Navy team estimates the CASS Support Pool reduces the time a broken part spends in the repair cycle by 75 percent," said Lockheed Martin Information Systems President John Hallal. "We take great pride in being the industry leaders, implementing this form of performance-based logistics for our customer."

CASS, the world's largest automated test equipment program, eliminates more than 25 unique testers onboard aircraft carriers. With more than 440 fielded systems, CASS has saved the Navy an estimated $1 billion, and the Navy projects savings in excess of $3 billion over the next 10 years. The system is the first recognized DoD standard test system, providing general-purpose analog and digital test capabilities, extremely high radio frequency stimulus and measurement capabilities and electro-optical test functions. Four standard configurations of Navy CASS provide intermediate- and depot-level testing with system-to-component-level diagnostic capabilities.

"This form of inventory management and dependability incentives ensures that reliable parts are where we need them, when we need them," said Marie Greening, NAVAIR Program Manager for Logistics Support.

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

Mike Mulleavey
407-306-1730
mike.mulleavey@lmco.com

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