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Lockheed Martin Naval Electronics & Surveillance Systems-Moorestown Receives New Ten-Year Expanded Aegis Lifetime Support Contract

MOORESTOWN, NJ, June 8th, 2000 -- Lockheed Martin Naval Electronics & Surveillance Systems (NE&SS)-Moorestown announced today that it has received a significant new contract from the U.S. Navy for Aegis Lifetime Support. This new contract represents a model for Prime Vendor Support contracts encompassing life cycle engineering and supply support for the Navy's Aegis fleet. The total contract ceiling, including all options, is $556 million through 2010. Under the terms of the contract, NE&SS-Moorestown will provide depot operations and lifetime support engineering services for the Aegis Program over a ten-year period. New areas of scope will include modernization and upgrade engineering, commercial-off-the-shelf equipment support, ship availability support, and training. Naval Sea Systems Command (NAVSEA) will administer the contract.

"We are pleased to be able to expand our contribution to the successful operation of Aegis ships around the world with this ten-year Lifetime Support Contract," said Fred P. Moosally, Vice President & General Manager of Lockheed Martin Naval Electronics & Surveillance Systems-Moorestown. "We are proud to continue our role as a key member of the team contributing to this important U.S. Navy effort."

NE&SS-Moorestown is the Aegis combat system engineering design agent responsible for the design, integration, and technology insertion and refresh of the complete shipboard, multi-warfare combat system present today on the TICONDEROGA and ARLEIGH BURKE classes of Aegis guided missile cruisers and destroyers.

At the core of the combat system is the Aegis weapon system which is designed, produced, integrated, and supported for life by NE&SS-Moorestown. This computer-controlled weapon system features the most capable tactical radar system ever put to sea -- the AN/SPY-1 phased-array radar. SPY-1 can automatically track multiple targets simultaneously, while maintaining continuous surveillance from the wave tops to the stratosphere. The Navy currently operates 27 Aegis cruisers and 28 Aegis destroyers.

Recent successful tests of the Aegis system -- incorporating system improvements and reliable, low-cost commercial computer equipment -- continues to demonstrate the system's ability to meet, and defeat, new and emerging threats.

NE&SS-Moorestown is one of six major operating sites of Lockheed Martin NE&SS. NE&SS 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. It is the largest business organization in the Lockheed Martin Systems Integration business area.

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