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SEABROOK, MD, April 20, 2007 -- In a brief ceremony yesterday, the U.S. Army Corps of Engineers issued a Letter of Obligation to the Government’s Most Efficient Organization (MEO) to provide Information Management and Information Technology (IM/IT) services. Lockheed Martin will partner with the MEO to provide contractual services to meet the agency’s IM/IT requirements.

Major General Ronald L. Johnson, USACE Deputy Commander, signed the Letter of Obligation with the MEO, initiating the phase-in and transition to the new IM/IT organization. The agreement is valued at approximately $447 million over the next five years. The MEO, supported by Lockheed Martin (NYSE:LMT), will provide Direct IM/IT services and contractor support at 55 major locations throughout the Continental United States and the Pacific Ocean Division Office, including the Alaska and Honolulu Districts.

The MEO won the public-private competition under the Office of Management and Budget Circular A-76. Lockheed Martin worked closely with the team that developed the Government’s tender under the competition to address contracting needs. The new IM/IT operation is expected to save up to $1 billion over the next five years. Dr. Jeffery Holland, Agency Tender Official, stated that "Having Lockheed Martin as a partner contributed immensely to the success of the Agency Tender, and their continued involvement will contribute to ACE-IT’s success."

The Letter of Obligation calls for support to the Corps’ civil works, military construction and research and development missions, providing infrastructure systems management, records management and document management, communications, desktop support, service desk, strategic planning, testing and solutions, information security, visual information, and printing and publications. Wilbert Berrios, Chief Information Officer for the Corps of Engineers, praised the results of the competition as a cornerstone in his 700 Day Transformation Plan.

Steve Lubniewski, President of Lockheed Martin Enterprise Solutions and Services, said, "This contract is a testimony to the excellent partnership that has existed between the MEO and our corporation. We stand united to improve service, drive out inefficiencies, and effect a real transformation in the IM/IT system. The Lockheed Martin contract team promises to bring exciting technology and industry best practices to bear on this vital national enterprise system."

Headquartered in Bethesda, Md., Lockheed Martin employs about 140,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The corporation reported 2006 sales of $39.6 billion.


Joe Wagovich, 301-352-2692, e-mail, or John O'Sullivan, 301-352-2697, email, john.r.o'

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