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Lockheed Martin and BAE Systems Conduct Successful Sled Test of Tactical Missile System and BROACH Technology

DALLAS, TX, February 17th, 2005 -- Lockheed Martin [NYSE: LMT] and BAE Systems successfully conducted a sled test of an Army Tactical Missile System (ATACMS) with a warhead containing a BROACH lethal payload at Pendine, Wales in February. Incorporating multi-stage warhead technology, the BROACH system consists of a penetrating shaped-charge warhead in front of a standard conventional follow-through bomb. It provides blast/fragmentation effectiveness, as well as hardened target penetration capability.

The test successfully demonstrated that the BROACH warhead technology, developed by BAE Systems, can be integrated into a ballistic missile, and that its lethality is enhanced by the high speed impact. In today's test, the warhead performed beyond expectations, achieving all test objectives. The test was conducted using funds provided by Lockheed Martin, BAE Systems and the U.S. Army.

“Lockheed Martin has worked closely with BAE Systems to demonstrate a capability previously unavailable to the soldier,” said Scott Arnold, Director ATACMS Programs. “An ATACMS missile including a BROACH warhead could provide Combatant Commanders with an all-weather, all environment, quick reaction means of destroying hard targets, precision area targets and precision point targets.”

BROACH is a candidate for the ATACMS Block IA Unitary system. This multimode warhead has the potential to significantly reduce logistics cost and simplify ammunition management for the Army.

The ATACMS family of munitions includes the ATACMS Block I, Block IA, and the Block IA Unitary. The ATACMS Block IA Unitary was successfully used for the first time during Operation Iraqi Freedom. In February, Lockheed Martin received a contract to produce ATACMS Block IA Unitary missiles for the U.S. Army.

Headquartered in Bethesda, MD, Lockheed Martin employs about 130,000 people worldwide and is principally engaged in the research, design, development, manufacture and integration of advanced technology systems, products and services. The Corporation reported 2004 sales of $35.5 billion.

BAE SYSTEMS is an international company engaged in the development, delivery and support of advanced defense and aerospace systems in the air, on land, at sea and in space. The company designs, manufactures and supports military aircraft, surface ships, submarines, radar, avionics, communications, electronics and guided weapon systems. It is a pioneer in technology with a heritage stretching back hundreds of years. It is at the forefront of innovation, working to develop the next generation of intelligent defense systems.

Jennifer Allen, (407) 356-5351

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