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Lockheed Martin Awarded Navy Contract, Valued at up to $323 Million, for MK 41 Vertical Launching System

BALTIMORE, MD, June 25th, 2002 -- Lockheed Martin has been awarded a $142 million U.S. Navy contract for the continued production and delivery of the MK 41 Vertical Launching System (VLS) for the U.S. Navy and Foreign Military Sales (FMS) customers. The contract includes two options, which if exercised through 2004 give the contract a potential value of $323 million. United Defense Limited Partnership (UDLP), a major supplier and teammate on continued launcher development, will receive a subcontract worth up to $113 million if all options are exercised.

The MK 41 VLS, a below deck missile launching system developed by the Naval Electronics & Surveillance Systems-Marine Systems (NE&SS) unit of Lockheed Martin, was originally designed for the Navy's Aegis guided missile cruisers to provide air threat protection for naval battle groups. Today, the MK 41 VLS has revolutionized the way world navies think about naval warfare by evolving into a multi-missile, multi-mission launcher. No other naval missile launcher is capable of launching missiles for every threat in naval warfare, including: anti-air, anti-submarine, ship self-defense, land attack, and ballistic missile defense. Installed in 16 different ship classes of 11 navies, the MK 41 VLS is truly international in scope. The FMS requirement of the contract announced today will provide the Republic of Korean (ROK) Navy with MK 41 launchers for its KDX-II program. Lockheed Martin has conducted combat systems integration for the KDX-II at its Baltimore facility

"We are extremely pleased with the Navy's decision to continue the MK 41 VLS production line, as we have worked diligently through baseline upgrades over the life of the program to keep the MK 41 VLS as cutting edge today as it was when it first entered the fleet," said Dale Bennett, vice president and general manager, NE&SS-Marine Systems. Jim Tucker, MK 41 VLS program director for Lockheed Martin, added: "No other naval missile launcher can match our any missile, any cell capability, along with our proven track record of more than 2,000 missile launches-more than half in combat-with a 99.7% reliability of launch and a superb safety record."

Specializing in the MK 41 VLS, systems integration and advanced hull form technologies, NE&SS - Marine Systems is a unit of Lockheed Martin Corporation.

Tom Greer, 410-682-1140