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U.S. Navy Awards Lockheed Martin $47 Million Contract for AN/SQQ-89(V)

Contract includes option for the sale of system to Japan

MANASSAS, VA, August 6th, 2002 -- The U.S. Navy has awarded a $47.2 million firm-fixed-price, cost-plus-award-fee contract to Lockheed Martin Naval Electronics & Surveillance Systems (NE&SS)-Undersea Systems for production and non-recurring engineering services of the AN/SQQ-89(V) system. The total potential value could reach $557 million if the Navy exercises all production options contained in the contract. Work will be performed in Syracuse, NY, and is expected to be completed by August 2005. Under terms of the contract, Lockheed Martin is charged with producing new SQQ-89 systems for the DDG-51 class AEGIS destroyers and updating systems in the CG-47 class AEGIS cruisers and DDG-51 class destroyers. The contract also contains options for the sale of SQQ-89 to Japan for Kongo-class destroyers.

In the mid-1980s, Lockheed Martin was the original developer of the AN/SQQ-89(V), the Navy's premier surface ship undersea warfare combat (USW) management system. Today, the AN/SQQ-89(V) is deployed in more than 100 Navy surface combatants, providing a full range of USW functions including active and passive sensors, underwater fire control, onboard trainer and highly-evolved display subsystem.

"We are delighted to continue in our role as the developer and producer of the Navy's AN/SQQ-89(V) and look forward to supplying Japan with the first foreign-delivered AN/SQQ-89(V) system," comments John O'Neill, president of NE&SS-Undersea Systems. "As in the past, we look forward to providing the Navy with a surface ASW suite second to none and are honored that the Navy has continued our prime role in this endeavor."

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



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