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Lockheed Martin Qualifies for All Four Lots in Army Simulation, Training, and Instrumentation Effort Worth Up to $4 Billion

Recent test - instrumentation simulation award added to live, virtual, and constructive training contracts

ORLANDO, FL, March 22nd, 2001 -- Lockheed Martin (NYSE: LMT) is one of only three companies awarded contracts in all four domains of the U.S. Army's Simulation, Training and Instrumentation Command (STRICOM) Omnibus Contract (STOC) worth up to $4 billion over eight years. Lockheed Martin Information Systems captured the fourth and final award in the Lot IV test -instrumentation domain of the indefinite delivery/indefinite quantity (ID/IQ) contract. The test - instrumentation domain involves products and services such as targets, simulations and instrumentation systems that allow assessment of military equipment effectiveness.

"In 1994, Lockheed Martin recognized the need to invest in combining its simulation and training resources into a world-class facility near the U.S. Army's center of excellence," said Lockheed Martin Information Systems President John Hallal. "That foresight has paid dividends in making our corporation a valued partner in the development of the Army's next generation of training and instrumentation systems."

Earlier STOC award announcements made in the fourth quarter of 2000 and January 2001 were for: Lot I live domain, which entails use of advanced distributed learning, training range instrumentation, and laser-based tactical engagement simulation systems to simulate military operations using live forces and weapon systems; Lot II virtual domain, which uses computer-based systems to simulate hardware, systems and munitions for the training of individual or collective groups of soldiers; and Lot III constructive domain, which includes war games and automated simulations that represent actions of people and systems in the simulation as well as entity level force simulation and models.

"STOC is designed to allow STRICOM to respond quickly to contracting requirements in support of solider simulation and training needs throughout the Army, DoD and related government agencies," said Brig. Gen. Stephen Seay, Commanding General, U.S. Army Simulation, Training, and Instrumentation Command. "By selecting a group of contractors who have demonstrated superior capabilities and are prepared in advance, STRICOM can be more responsive to contracting requirements."

Lockheed Martin's ground simulators train war fighters to maneuver as units through photo-realistic virtual synthetic environments, its live-fire targetry and tactical engagement systems train soldiers to operate in the stress and lethality of combat, its constructive simulations prepare Army leaders to address future conflicts and Lockheed Martin's flight simulators take pilots from initial qualification training all the way through real-time, virtual combat mission rehearsal.

Lockheed Martin employs approximately 6,500 employees in Central Florida operations.

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