Military

LOCKHEED MARTIN SELECTED TO CO-PRODUCE RADARS IN ROMANIA

BUCHAREST, ROMANIA, January 29th, 2003 -- The Romanian Ministry of Defense (MOD) and Lockheed Martin today signed a Memorandum of Understanding (MOU) to explore co-production of 21 gap-filler radar systems in Romania from 2004-2008. The program would allow Romanian industry to participate in improving the nation's air surveillance capabilities at low and medium altitudes. The gap-filler co-production program would result in a $40 million technology transfer program. The MOU was signed in the presence of William H. Lash, U.S. Assistant Secretary of Commerce for Market Access and Compliance, and Michael E. Guest, the U.S. Ambassador in Romania.

As a result of the MOU, a team from Lockheed Martin's Syracuse, N.Y., facility will work with Romanian industry during 2003 to develop a work-share program to produce the mobile radar systems. The team will survey pre-selected Romanian companies for capabilities that will support the production of the radar system as well as facilities for assembly and test of the systems.

Lockheed Martin expects to control production quality and compliance with technical requirements and manufacturing procedures and would supply the radar components and sub-assemblies, but most of the radars would be manufactured in Romania in cooperation with the Romanian companies under Lockheed Martin's brand. UTI Systems S.A., a Romanian company, would serve as the local integrator.

"UTI Systems is honored to be selected to work with Lockheed Martin on this program. We understand that the success of this program is important toward solidifying Lockheed Martin's presence in Romania, and we are committed to meet the challenging expectation of the Ministries of Defense and Industry," said Tiberiu Urdareanu, president and chief executive officer of UTI Systems S.A.

"The gap-filler radar systems would, in coordination with the radar systems that Romania already has deployed, provide important radar coverage for the country, and would be an important contribution by Romania to the security of NATO allies in the region," said Scott Harris, president, Continental Europe, Lockheed Martin Global, Inc. "Lockheed Martin is extremely pleased at this latest example of cooperation between our company and Romania. We look forward to the implementation of this project and to working with our Romanian partners to bring this important capability to Romania."

Romania would use the Multi Mission Surveillance Radar (MMSR) systems together with five existing AN/FPS-117 radar systems in a dual-use mode to monitor airspace in and around the country. The MMSR will act as a "gap-filler" radar, augmenting the coverage of the fixed-site radars to supply a more complete air surveillance capability.

"The Romanian MOD's decision to pursue this program is based on the positive results we have already seen in the current program to develop two prototype gap-filler systems. Those systems are being developed at Lockheed Martin's facility in Syracuse, in accordance with Romanian-specific requirements," said Dr. Sc. Gheorghe Matache, state secretary and chief of the Department for Armaments. "The decision also was based on the need to begin the co-production program immediately after the first two systems are tested and operationally validated, so the radar can be delivered no later than the first quarter of 2005."

Romanian Minister of Defense Dr. Ioan Mircea Pascu, observed "' this decision - for the largest defense contractor and radar manufacturer in the world to come to Romania for development of a co-production program - is an important signal for the business community, as well as for the government."

Added Deputy Minister of Industry, Retired General Decebal Ilina, "It is also a promising step for the Romanian industry, which is looking for solid partnerships with world-class companies."

"We are pleased that the Romanian Ministry of Defense has decided to purchase additional radars from Lockheed Martin to supplement the nation's existing surveillance system," said Denny Beres, vice president, radar systems for Lockheed Martin. "This endeavor is the result of our proven radar expertise, the value of our product, our solid relationship with the Romanian government and our understanding of the proven capabilities of Romanian industry."

A leader in the design, development and integration of radar systems, vessel traffic and port safety, simulation and training systems and other complex electronic systems, Lockheed Martin Naval Electronics & Surveillance Systems (NE&SS) - Radar Systems serves a wide range of customers. These include all branches of the U.S. armed services, including the Coast Guard, as well as other agencies within the U.S. Departments of Commerce, Transportation and State, and defense and transportation departments of countries on six continents. NE&SS-Radar Systems employs over 3,000 people with facilities in the U.S. and three other countries, and is a unit of Lockheed Martin Corporation.

Kerri Ganci, 315-456-3328, mailto:[email protected]