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U.S. Navy Orders Lockheed Martin Automated Test Equipment Worth $84 Million

Exercises second option for Test Program Sets Offload program and orders additional Consolidated Automated Support System test systems

ORLANDO, FL, February 7th, 2002 -- Lockheed Martin, under separate U.S. Navy contracts worth a total of $84 million, will provide 12 Consolidated Automated Support System (CASS) test systems and develop additional CASS test program sets (TPS) for support of Navy aircraft. 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. The TPS test kits will enable Navy and Marine Corps technicians to more efficiently test electronic systems on many of the services' fixed- and rotary-wing aircraft.

"Lockheed Martin's CASS automated test equipment helps ensure the Navy's vigilance on the seas by providing avionics support that have resulted in cost savings and cost avoidance to date in excess of $1 billion," said Lockheed Martin Information Systems President John Hallal. "Our newly opened center of excellence for TPS testing is a significant example of Lockheed Martin's long-term commitment to the Navy."

The CASS contract modification, worth approximately $42.3 million, includes 16 radio frequency (RF) station kits and the 12 new CASS test systems as well as engineering and production support.

Exercise of an option on the CASS TPS Offload contract, worth approximately $41.7 million, covers development and first article test units of 124 additional TPS test kits for the Navy. Lockheed Martin will provide integrated hardware and software kits, called test program sets, to the U.S. Navy for testing aircraft avionic systems.

Lockheed Martin Information Systems recently opened a world-class Test Program Sets Offload facility at its Orlando headquarters. The Test Program Set test integration facility will provide the U.S. Navy with 545 avionics test kits under a five-year contract awarded in September 2000. Navy and Marine Corps technicians use the TPS kits to execute automated tests on a standardized test station platform - the Consolidated Automated Support System or CASS - to detect and isolate faults in electronic assemblies on aircraft systems. Naval aircraft included in the avionic systems testing are: E-2C, EA-6B, F-14, F/A-18, AV-8B, S-3, and SH-60.

With nearly 550 CASS systems fielded, the Navy projects total savings in excess of $3 billion over the program's 20-year life cycle. 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.

Headquartered in Bethesda, Md., Lockheed Martin (NYSE: LMT) is a global enterprise principally engaged in the research, design, development, manufacture and integration of advanced-technology systems, products and services. The Corporation's core businesses are systems integration, space, aeronautics, and technology services.

Michael Mulleavey, 407-306-1730

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