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LOCKHEED MARTIN UK SELECTED FOR ROYAL NAVY CEC CONTRACT

LONDON, UNITED KINGDOM, December 5th, 2002 -- Lockheed Martin UK Ltd. - Integrated Systems has been selected as the prime contractor for the Royal Navy's Co-operative Engagement Capability (CEC) T23 Frigate programme by the Ministry of Defence (MoD) following an extensive competitive source selection process. On announcing the award, Lord Bach Minister for Defence Procurement said "I am delighted to award this important assessment contract for studies into Co-operative Engagement Capability. It is a system that could potentially offer a very significant enhancement to the situational awareness of our naval forces and their ability to protect themselves against the threat posed by enemy aircraft and missiles. It is a vital study into a system, which could lead to a revolution in our naval air defence capability. By bringing together all the information from all the networked radar in the battlegroup the fog-of-war is reduced and the Air Defence Commander will be presented with a highly accurate picture of all air target movements that will enable him to engage enemy forces quickly and efficiently."

The contract award is for the second phase of a programme to integrate CEC into the Type 23 Frigate Combat System with the aim of having CEC in service by 2008. Phase Two is a 26-month continuation of the risk reduction and integration design activities leading to a demonstration of the CEC capability integrated into the Royal Navy Type 23 Frigate's Combat System prior to Main Gate submission for full production.

CEC will transform how future battles are fought by sharing sensor information between ships in a task force, allowing all available information from radars and other weapons systems to be used to defeat threats such as hostile aircraft and missiles. By linking all CEC-equipped ships, and potentially airborne and land-based sensors, it provides a common, consistent and highly accurate Recognised Air Picture, allowing all battle group defences to act as a single system. CEC is seen as a key technology for future Network Enabling Capability initiatives as posulated in the Strategic Defence Review New Chapter.

"This is a tremendous win for us and a great opportunity for Lockheed Martin to continue to deliver state-of-the-art systems to the Royal Navy, stated Ron Christenson, group managing director of Lockheed Martin UK Ltd. - Integrated Systems. "We have been working closely with the Royal Navy since 1991 when we were awarded the Merlin HM Mk1 helicopter programme and will continue our successful relationship on CEC. We are absolutely committed to delivering the CEC programme and to working with the Navy to develop the networked fighting force of the future that CEC will enable. CEC is at the heart of the digitized and networked battlespace, It is a very exciting development that will give the Royal Navy unprecedented levels of sensor accuracy and confidence."

Lockheed Martin UK Ltd. - Integrated Systems successfully completed the first risk reduction phase in September of 2001 culminating in a successful proposal submission for Phase Two. During Phase One, Lockheed Martin UK Ltd. - Integrated Systems established a strong CEC team that includes Lockheed Martin Naval Electronics and Surveillance Systems - Surface Systems, Alenia Marconi Systems and QinetiQ to develop the winning solution.

The team provides extensive knowledge of the UK platforms and of the technologies involved and issues associated with CEC integration, in particular, the experience already gained integrating CEC into the USN AEGIS Combat System.

Lockheed Martin UK
Lockheed Martin UK Ltd is a leader in systems integration working on major programmes spanning the aerospace, defence, civil and commercial sectors with significant capabilities in the transport infrastructure market. Lockheed Martin UK Ltd. has annual sales of approximately £650 million and enjoys more than 75 significant business partnerships in the UK. Lockheed Martin UK is a unit of Lockheed Martin Corporation and employs approximately 1,000 employees at over 10 facilities including London, Havant, Southampton, Yeovil, Swindon, Hertford, Bristol and Cornwall.

Christopher Trippick
Tel: +44(0)23 9256 4197
mobile: +44(0)7905 356646
email: chris.trippick@lmco.com



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