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Lockheed Martin Awarded $226 Million Contract (Including Follow-On Production) to Provide Air Force A-10 Fleet Precision Attack Capability

Innovative approach saves U.S. Air Force $150 million over cost of executing separately funded requirements and delivers capability earlier

OWEGO, NY, February 15th, 2001 -- Lockheed Martin Systems Integration - Owego and the U.S. Air Force A-10 Program Office at Hill Air Force Base, Ogden, Utah, have entered into the largest single upgrade effort ever undertaken for the A/OA-10 aircraft. The A/OA-10 Prime contract modification has an estimated value of $226 million, $74 million for the Engineering, Manufacturing and Development (EMD) phase through 2004 with follow-on production at $152 million. This innovative government and industry teamwork approach cost-effectively combines multiple A-10 upgrade requirements into one program that fits within current available funding and saves the U.S. Air Force approximately $150 million over the cost of executing the requirements as standalone projects. The Precision Engagement modification also provides the A-10 fleet with enhanced close-air support and precision strike capability earlier than originally planned.

During the EMD phase, the company's Aerospace Systems business unit will design, manufacture and test the Precision Engagement system. This effort involves the installation of a digital stores management system for cockpit interface with its weapon systems; new cockpit displays; a Situational Awareness Data Link (SADL) to provide accurate information about friendly forces and potential threats; a Direct-Current (DC) generator upgrade; and the integration of guided weapons such as the Joint Direct Attack Munition (JDAM) and Wind Corrected Munitions Dispenser (WCMD) along with future targeting pod integration. Follow-on efforts will then outfit the entire A-10 fleet.

"The Air Force's original funding did not include the DC power modification and guided munitions capability," explained Stephen D. Ramsey, vice president, Aerospace Systems. He noted that by combining these with the separately funded programs along with future targeting pod integration, many of the A-10s will now be pulled out of the fleet just once to reduce aircraft downtime and overall costs.

"We are delighted to provide our customer with more capability, sooner than planned, and for less money," said Ramsey. "This project demonstrates that great ideas result from the continued strong working partnership between our Air Force customer and the A-10 Prime team. The Air Force wisely decided to combine the modification efforts and has again placed their confidence in us to effectively design and integrate the upgrade."

The A/OA-10 is an effective, survivable twin-engine jet aircraft that can be used against ground targets, including tanks and armored vehicles. This aircraft has excellent capability at low air speeds and altitudes, and the new upgrade will enable the A-10 to perform vital missions with greater accuracy at higher altitudes.

The A/OA-10 Prime base contract was awarded to Lockheed Martin in December 1997. Lockheed Martin Systems Integration - Owego leads a team that includes BAE SYSTEMS Controls, Johnson City, N.Y., and Southwest Research Institute in San Antonio, Texas. In its capacity as prime contractor, Systems Integration - Owego develops and integrates modifications for the fleet and is the primary provider of sustaining engineering services. This long-term support will help sustain the fleet's optimal performance level through 2008.

Lockheed Martin Systems Integration - Owego is a leader in providing advanced-technology products, services and systems integration solutions for defense, civil and commercial customers worldwide. Systems Integration - Owego employs more than 4,300 people at facilities in the United States, Canada and the United Kingdom and is a unit of Lockheed Martin Corporation with headquarters in Bethesda, Md.

Kippen Stalma, 607-751-2789; e-mail, kippen.stalma@lmco.com
Mike Drake, 607-751-2598; e-mail, mike.drake@lmco.com



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