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Lockheed Martin Awarded $72 Million Fixed Surveillance Systems Contract

MANASASS, VA, April 9th, 2001 -- Lockheed Martin Naval Electronics & Surveillance Systems (NE&SS)-Undersea Systems has been awarded a $72 million contract to provide engineering services for fixed surveillance systems in support of the U.S. Navy Space and Naval Warfare Systems Command (SPAWAR), San Diego, California. The cost-plus-fixed-fee contract covers an initial five-year period and may be extended to 15 years, with a total potential value of $270 million. Fixed Surveillance Systems form a key element of the Navy's Integrated Undersea Surveillance System (IUSS). The IUSS provides surveillance against submarines and surface ships in deep ocean and littoral environments.

Under terms of this contract, Lockheed Martin will provide technical and engineering services to support design, development, integration, testing, installation, logistics, life cycle support, training, and documentation of fixed surveillance sensor systems.

General Dynamics Advanced Technology Systems is joining Lockheed Martin on this project as the key subcontractor. Work will be performed at Lockheed Martin in Manassas; General Dynamics in Greensboro, North Carolina; and on U.S. Navy Integrated Undersea Surveillance Systems installations.

"We are extremely gratified to win this important contract and continue to serve the U.S. Navy in the critical area of undersea surveillance," said Francis M. DeBritz, president of NE&SS-Undersea Systems. "The combined skills and resources of Lockheed Martin and General Dynamics will serve the U.S. Navy well on this project."

Lockheed Martin Naval Electronics & Surveillance Systems-Undersea Systems in Manassas is a leader in developing and integrating complex systems for domestic and international military, civil government and commercial customers. It is a unit of Lockheed Martin's Systems Integration business area. With headquarters in Bethesda, MD, Lockheed Martin Corporation's (NYSE: LMT) other business areas include Aeronautics, Global Telecommunications, Space Systems and Technology Services.

Carolyn Fray, 703.367.2323, or email: carolyn.fray@lmco.com