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Lockheed Martin Awarded Navy Contract in Support of Cruiser Conversion

BALTIMORE, MD, September 17th, 2002 -- Lockheed Martin has been awarded a $6.5 million U.S. Navy contract to upgrade the MK 41 Vertical Launching System (VLS) installed aboard 22 of the service's 27 Ticonderoga-class cruisers. This contract, associated with the Navy's Cruiser Conversion program, is in addition to the previously awarded multi-year contract for the continued production and delivery of VLS for the U.S. Navy and Foreign Military Sales (FMS) customers through 2004. The multi-year contract has a value of up to $323 million if all options are exercised.

Under the Cruiser Conversion contact, Lockheed Martin Naval Electronics & Surveillance Systems (NE&SS) - Marine Systems will develop enhancements to the VLS Launch Control System and associated electronics. This will be accomplished by migrating the Launch Control Computer Program (LCCP) from the current AN/UYK-44 computer to the Lockheed Martin-developed AN/ALQ-70, complete with high-speed commercial processing power, to meet the demands of growth in missile capabilities and missions, including Ship Self Defense. Among other enhancements, the upgraded launchers will be able to accommodate the MK 25 Quad Pack Evolved Sea Sparrow Missile (ESSM) canister, housing four ESSM missiles in a single VLS cell. The MK 25 is developed by United Defense Limited Partnership (UDLP), a major supplier and teammate on continued launcher development.

The Navy, through its Cruiser Conversion program, is upgrading its current Ticonderoga-class fleet to maximize the life of the ships and enhance their warfighting capabilities, specifically in the areas of ballistic missile defense, land attack, maritime force protection and operations in the littorals.

Dale Bennett, vice president and general manager of NE&SS-Marine Systems, stated: "We are excited about helping the Navy capitalize on previous investments made in its cruiser fleet. Thanks to spiral development technology insertion throughout the life of the VLS program, we are uniquely positioned to make immediate contributions to the overall Cruiser Conversion program effort."

NE&SS - Marine Systems, Tom Greer, 410-682-1140



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