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Lockheed Martin and DRS Technologies Form Industry Consortium to Redefine Naval Display Systems

EAGAN, MN, January 15th, 2004 -- Lockheed Martin [NYSE: LMT] and DRS Technologies, Inc. (NYSE: DRS) announced today that they have formed an industry consortium to research and develop a new generation of advanced naval displays. The consortium is specifically between the Lockheed Martin Maritime Systems & Sensors (MS2) Tactical Systems line of business and DRS’s Electronic Systems Group.

The consortium will pursue the U.S. Navy’s Naval Display Systems (NDS) contract, which is a follow-on to the AN/UYQ-70 Advanced Display Systems program contract that Lockheed Martin has held since 1994. A Request for Proposal has been released by the Navy; proposals are due in March and the contract is expected to be awarded in this year.

“This consortium brings to the defense industry the expertise of two industry leaders joined in a unique strategic partnership,” said Fred Moosally, president, Lockheed Martin MS2. “We offer a proven path of performance, based on our 10 years of working together to develop and support platforms for the U.S. Navy. We have created new management structures, new research and development processes and new support channels that will allow us to create the most innovative solutions to meet the Navy’s future needs.”

Together the companies will continue to provide “best-of-breed” design, development, manufacturing and customer support to satisfy the Navy’s requirements. Under the consortium’s structure, additional strategic vendor partners may be asked to join the consortium when additional product-specific expertise is needed and to increase total value to the Navy. This flexible structure will allow the consortium to provide truly “best in-class” solutions and value to customers — solutions that provide the lowest total-cost-of-ownership and the lowest possible development risk. Both companies will participate in the contract pursuit and proposal work as well as marketing activities.

“The NDS consortium will use our collective knowledge of mission systems and Navy requirements to develop and implement advanced concepts and technologies,” said Paul G. Casner, Jr. executive vice president and chief operating officer, DRS Technologies. “We will focus on the Navy’s ever-evolving surface and sub-surface needs, working to create future combat displays that revolutionize their defense capabilities.”

Under the Navy’s AN/UYQ-70 contract, Lockheed Martin and DRS currently develop and provide ruggedized, COTS-based tactical display and computing systems that support common operating environments implemented in current and future surface, subsurface and airborne platforms. These workstations are currently installed on board the E-2C Hawkeye aircraft, Virginia and Los Angeles Class attack submarines, AEGIS Surface Combatants, LPD, LPH and LHA amphibious ships and ground mobile units. The Q-70, COTS-based architecture and components provide the cornerstone for modernizing combat/mission critical systems for the U.S. Navy as well as other Department of Defense applications.

DRS Technologies, headquartered in Parsippany, New Jersey, provides leading edge products and services to defense, government intelligence and commercial customers. Focused on defense technology, DRS develops and manufactures a broad range of mission critical systems. The company employs 5,700 people worldwide. For more information about DRS Technologies, please visit the company’s web site at www.drs.com.

Sheri Grone, Lockheed Martin 651-456-2210, e-mail: sheri.t.grone@lmco.com