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Lockheed Martin To Provide Integrated Weapon System As Part Of Bazan Team For Norwegian New Frigate Program

MOORESTOWN, NJ, June 23rd, 2000 -- The Royal Norwegian Navy today signed a contract with shipbuilder Empresa Nacional Bazan (E.N. Bazan) of Spain for five advanced frigates designed to protect the country against subsurface, surface and air threats. Bazan, as the program's prime contractor, also signed a subcontract with Lockheed Martin for the frigate's integrated weapon system (IWS). The 10-year contract, signed in Bergen, Norway, provides for the delivery of the first ship in 2005. The overall value of the program is approximately 14 billion Norwegian krone (approximately $1.5 billion U.S.), with Lockheed Martin receiving about a third of that amount. Norwegian industry will provide key elements of the IWS and will participate in the shipbuilding effort. Other Norwegian companies on the program include Kongsberg Defence & Aerospace (KDA), NERA, Mjellum & Karlsen, among others.

"We are delighted to be a part of this multinational frigate team and proud of the strong, positive working relationships that we have developed over the past few years with one of Europe's finest shipyards," said Robert B. Coutts, executive vice president of the Lockheed Martin Systems Integration business area. "We appreciate the openness of the Norwegian Ministry of Defence to partnering with a multi-national team, and the professionalism of the Ministry's staff throughout the entire process. We look forward to working with our new teammates in Norway and to creating a model transatlantic partnership."

Lockheed Martin's integrated weapon system for Norway is a derivative of the U.S. Navy's Aegis combat system, for which Lockheed Martin serves as prime contractor and engineering design agent.

"The U.S. Navy, with its steadfast support of transatlantic cooperative programs, played an important role in bringing this important international opportunity to fruition," said Joseph D. Antinucci, president of Lockheed Martin Naval Electronics & Surveillance Systems. "That support, coupled with strategic alliances among key team members Bazan, Kongsberg, Mjellum & Karlsen and Lockheed Martin, was an essential catalyst in the process leading to this contract award."

The Aegis system is currently operational on 27 TICONDEROGA-class cruisers, 28 ARLEIGH BURKE-class destroyers and four KONGO-class destroyers in Japan, and is in production for Spain's F-100 ships.

"We are proud to be a member of a world-class international team that will provide the citizens of Norway with an affordable new frigate," said Fred P. Moosally, president of Lockheed Martin NE&SS-Moorestown. "Our team's offering will ensure a high degree of capability to the maritime forces of Norway."

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, KDA generates exports that account for more than 80 percent of orders.

E.N. Bazan was established in 1742 as a shipyard devoted to the Royal 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.

NE&SS-Moorestown is one of six major operating sites in the Lockheed Martin NE&SS business segment. 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



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