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Lockheed Martin Training Awarded MILES XXI Contract Worth Over $400 Million

U.S. Army Will Receive New Laser Simulation Equipment for Various Infantry Weapons and Fighting Vehicles

ORLANDO, FL, May 22nd, 2001 -- Lockheed Martin Information Systems (NYSE: LMT) this week was awarded the U.S. Army's Multiple Integrated Laser Engagement Systems XXI, or MILES XXI, task order to produce and field laser based training systems for live force-on-force training. MILES XXI is a family of infantry, vehicle, anti-tank and independent target systems tested and proved in the field by the armed forces of numerous countries. The laser training system furnishes real-time feedback on the result of weapon engagements so players can duplicate the stress and lethality of actual combat in a variety of battle scenarios.

The initial $13 million contract award for low rate initial production is the first phase of a multi-year production contract that, with all options exercised, has potential of exceeding $400 million. The current task order was awarded under the U.S. Army's Simulation, Training and Instrumentation Command (STRICOM) Omnibus Contract for live domain training.

"Our MILES XXI training system is compatible with existing and fielded MILES equipment and is supportable and upgradeable to replace basic MILES equipment as rapidly as possible," said Lockheed Martin Information Systems President John Hallal. "MILES XXI technology provides a total live training system that is the most cost effective and most versatile in the world today."

Lockheed Martin's MILES XXI is based on Information Systems' previously fielded 3rd Generation MILES systems and the Advanced MILES Plus systems produced by Schwartz Electro-Optics, Lockheed Martin's MILES XXI teammate. Work on the new laser training system will take place in Lockheed Martin Information Systems' and Schwartz Electro-Optics' facilities in Orlando and Lockheed Martin's facilities in La Mesa, Mexico. Lockheed Martin Information Systems is the lead operating company within the virtual Lockheed Martin Training line of business.

"This gives us a solid business base to really move the company forward and successfully implement our strategic plan," said Schwartz Electro Optics President of Orlando Operations Jeffrey Saunders. "We are excited to have the opportunity to partner with Lockheed Martin."

Enhanced features of MILES XXI include a 50 percent weight reduction, smaller components, longer battery life, lower production costs, and reduced system maintenance from previous versions. The advanced devices are interoperable with previous configurations of MILES and are upgradeable for instrumented use at Combat Training Centers and with precision-gunnery configurations.

Lockheed Martin Training provides design, development, installation, operation and integration of training and simulation systems for global defense, civil, and commercial markets.

Lockheed Martin
Mike Mulleavey, 407-306-1730,
e-mail: mike.mulleavey@lmco.com

Schwartz Electro-Optics
Beth Cocciarella, 407-644-2636,
e-mail: bethc@pecorapr.com