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U.S. Army Selects Lockheed Martin-Boeing Team for $78.4 Million Apache Sensor Modernization

Arrowhead - New Eyes For The Apache

ORLANDO, FL, October 19th, 2000 -- The U. S. Army has selected Team Apache Systems, led by Lockheed Martin and The Boeing Company, for its Apache sensor helicopter modernization program valued at approximately $1 billion long term, beginning with today's announcement of the approximately $80 million for the development (EMD) phase. Called Arrowhead^TM, the advanced technology Forward-Looking Infrared (FLIR) thermal system for the Apache will take the Apache helicopter through the next 20 years and beyond with expected operational and support cost savings to exceed $47 million per year-nearly $1 billion in total savings over the life of the system. The new design of the advanced targeting and navigation system allows Apache pilots to fly and fight in day, night, and adverse weather with greater safety and improved reliability. Team Apache Systems (TAS) is a limited liability company comprised of Lockheed Martin Millimeter Technologies Inc., and McDonnell Douglas Helicopter Systems (an indirect subsidiary of The Boeing Company). The major subcontractors to TAS are Lockheed Martin Missiles and Fire Control, Orlando, Florida, producers of the current generation TADS/PNVS system, and The Boeing Company rotorcraft unit in Mesa, Arizona, the makers of the AH-64 Apache helicopter.

"This is great news and a strategic win for Team Apache!" said Stan Arthur, President, Lockheed Martin Missiles and Fire Control-Orlando and board member of Team Apache Systems (TAS). "With Arrowhead^TM, Team Apache will continue a 20-year program and over 3 million operational hours in support of a system that has been the mainstay of attack helicopter capability for the U.S. Army around the world. Arrowhead^TM is the first significant modernization upgrade for the Lockheed Martin TADS/PNVS electro-optical system on the Boeing AH-64 Apache helicopter. With the Arrowhead^TM advanced technology electro-optical system for night and adverse weather flight and targeting, performance will increase by nearly 100 percent and reliability will improve over 130 percent above the current, high performing Apache systems," he added.

"The high reliability of the Arrowhead^TM design and its built-in test features will cut the U.S. Army's operating and support (O&S) costs by more than 50 percent," explained Michael T. Donovan, Vice President, Fire Control & Sensors for Missiles and Fire Control and board member of TAS. The Arrowhead^TM Engineering and Manufacturing Development (EMD) phase begins immediately upon contract announcement and production starts in late 2003. U. S. Army Apache pilots can expect an Arrowhead^TM system on their Apache helicopters with first units fielded in early 2004.

Internationally, this award will impact upgrades and future sales of Apaches around the world, with countries such as Singapore, Israel, and the United Kingdom likely having an interest in modernization of their current fleets. This significant modernization of the Apache should attract the interest of other countries currently looking to procure a new attack helicopter.

"A major characteristic of the Arrowhead^TM upgrade - the advanced technology pilotage system - gives Apache pilots the option of a switchable image intensification (I2) TV for better situational awareness. Provisions for image fusion and wide field of view (30 x 52-degree) helmet-mounted displays are also engineered into the system leaving flexibility for future improvements," explained Donovan.

Arrowhead^TM uses digital video to enhance recording capability and facilitate still-frame video imagery transmission to the ground commander or another aircraft during normal operations. In answer to the U.S. Army's call for horizontal technology insertion (HTI), Arrowhead^TM minimizes risk and drives down cost of ownership by incorporating components and technologies used for other Army systems and programs, particularly the Army's ground FLIR system through HTI between the Apache and the ground FLIR; as well as with the Comanche program also produced by Lockheed Martin Missiles and Fire Control.

The Arrowhead^TM system is designed for "plug-and-play" component replacement that can be accomplished within minutes at the flightline and will have substantial cost savings benefit in its application to Comanche. "The simplicity of design ensures that two-level maintenance is facilitated, easing the workload of the Apache maintainers," said Donovan.

Located in Dallas, Texas, and Orlando, Florida, Lockheed Martin Missiles and Fire Control, a world leader in electro-optics, smart munitions, advanced combat, missile, rocket and space systems, is an operating element of Lockheed Martin Systems Integration business unit based in Bethesda, Maryland.

>Nettie Johnson: 407-356-5351; Pager: 800-344-6391; Email: nettie.r.johnson@lmco.com
Don McClain: 407-356-3355; Pager: 407-940-9133, E-mail: donald.mcclain@lmco.com