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Lockheed Martin Awarded $32 Million Contract for Sniper XR Advanced Targeting Pods

ORLANDO, FL, April 29th, 2004 -- Lockheed Martin [NYSE: LMT] received a $32 million order from the U.S. Air Force for Sniper XRTM (eXtended Range) advanced targeting pods. The seven-year firm-fixed price contract provides options for the Air Force to procure Sniper XR pods, associated equipment and spares. The Sniper XR has potential domestic and international sales of up to several billion dollars over the life of the program.

This order, which also includes spares and training, marks the fourth buy (Lot IV) of Sniper XR for the U.S. Air Force. A second increment of the Lot IV buy is expected this year.

"This contract modification not only demonstrates the U.S. Air Force's confidence in the capabilities of Sniper XR, but reflects their satisfaction with Sniper's performance in on-going Qualification Tests and Evaluation (QT&E)," said Ken Fuhr, Sniper XR program director at Lockheed Martin Missiles and Fire Control. "Our success in QT&E proves that we are meeting our customer's expectations in providing a targeting pod that can operate successfully in a demanding tactical environment," Fuhr said.

QT&E is on target for completion in May and the operational phase is on schedule to begin this summer.

Sniper XR pods will initially equip the U.S. Air Force F-16 Block 50 and the Air National Guard's F-16 Block 30 aircraft. Follow-on procurements are expected to outfit the F-16 Block 40, F-15E and A-10 fleets. The U.S. Air Force is evaluating Sniper XR to fulfill targeting requirements for the B-1 and B-52 aircraft.

Sniper XR incorporates a high-resolution, mid-wave third generation Forward Looking Infrared (FLIR), a dual-mode laser and a CCD-TV along with a laser spot tracker, a laser marker and a sophisticated data-link. Designed as an affordable precision targeting system in a single, lightweight pod, Sniper XR is fully compatible with the latest J-series munitions and precision guided weaponry.

Jennifer Allen, 407-356-5351

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