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Lockheed Martin And Kongsberg Defence & Aerospace Finalize Terms And Conditions On Norwegian Navy's Frigate Program

MOORESTOWN, NJ, June 6th, 2000 -- Lockheed Martin and Kongsberg Defence & Aerospace AS (KDA) of Norway have finalized terms and conditions of an agreement under which KDA will develop and build key elements of the integrated weapon system for the Royal Norwegian Navy's $1.4 billion New Frigate program. The agreement defines KDA's workshare as a major partner to Lockheed Martin. Lockheed Martin Naval Electronics & Surveillance Systems (NE&SS)-Moorestown is providing the Integrated Weapon System (IWS) for the Norwegian New Frigate Program as part of the team led by Spanish shipbuilder Empresa Nacional Bazan. The agreement represents a critical milestone leading to a contract award by the Royal Norwegian Navy to Bazan.

Under the agreement, KDA will develop and produce the total integrated anti-submarine warfare system and also supply the anti-surface warfare and navigation/bridge system for the frigate, as well as other elements of the IWS. This work is valued at more than $100 million.

"Our agreement culminates several months of intense negotiations and significantly strengthens the Lockheed Martin/Kongsberg partnership that brings one of Norway's most important high-technology companies onto the team," said Fred P. Moosally, Vice President & General Manager of Lockheed Martin NE&SS-Moorestown. "This agreement forms the cornerstone of a long-term Lockheed Martin/KDA partnership that has been established to market naval surface ship products worldwide. Together, we are well positioned to offer our international customers the most capable and affordable frigates available."

"This agreement represents another major milestone for KDA as it establishes itself as an Anti-Submarine Warfare System supplier and forges a long-term partnership with Lockheed Martin, the world's leading defense company," said Tom Gerhardsen, President of Kongsberg Defence & Aerospace.

Kongsberg Defence & Aerospace is part of Norway's premier high technology enterprise Kongsberg Gruppen ASA. Kongsberg Defence & Aerospace is Norway's leading defense enterprise, and accounted for over one quarter of the Group's 1999 operating revenue of approximately $555 million (U.S.). Core product areas are command and weapon control systems for naval and land use, anti-ship missiles, and communications. As Norway's largest supplier to the international defense market, exports accounts for more than 80 percent of orders.

E.N. Bazan was established in 1742 as a shipyard devoted to the Spanish Navy and is now fully dedicated to design and construction of vessels for both the Spanish Navy and the international market. E.N. Bazan employs more than 5,000 people in three facilities.

An advanced technology, engineering intensive manufacturing business, Lockheed Martin Naval Electronics & Surveillance Systems-Moorestown provides systems engineering and system integration services, advanced combat systems and radar systems for surface ships and other applications, naval tactical command and control systems, and lifetime support products and services. Its principal customers include the US Navy and the navies of allied nations.

Jim Tierney, NE&SS-Moorestown, 856.722.5848; jim.g.tierney@lmco.com
Rich Palmay, NE&SS-Moorestown, 856.722.2708; richard.l.palmay@lmco.com