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Military

U.S. Navy Orders Lockheed Martin Automated Test Equipment Worth $62.9 Million

Exercises option for 40 Consolidated Automated Support System (CASS) stations

ORLANDO, FL, January 19th, 2001 -- Lockheed Martin (NYSE: LMT), under a contract modification worth approximately $63 million over 3 years, will provide 40 Consolidated Automated Support System (CASS) stations to the U.S. Navy. Equipment to be provided includes 20 hybrid and 20 radio frequency (RF) stations as well as various ancillary equipment and station maintenance. CASS, the world's largest automated test support program, is the Navy's standard test equipment used to test avionics on aircraft carriers and in depots throughout the United States. This is a modification to a previously awarded firm-fixed price contract issued by the Naval Air Systems Command, Patuxent River, Md.

"CASS equipment is a significant example of Lockheed Martin's long-term commitment to the Navy as it replaces over 24 different types of aging and obsolete test equipment," said Lockheed Martin Information Systems President John Hallal. "Our automated test equipment helps ensure the Navy's vigilance on the seas by providing avionics support that results in cost savings and avoidance in excess of $1 billion."

With nearly 500 CASS systems fielded, the Navy projects savings in excess of $3 billion over the next 10 years. The complete fielding of CASS has lead to the reduction of legacy testers in the fleet and the associated costs of legacy tester training, spares, maintenance publications, manpower, and field support.

Michael Mulleavey, 407-306-1730, e-mail, mike.mulleavey@lmco.com



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