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MARIETTA, Ga., May 3, 2007 --

The U.S. government has awarded an initial $23 million to Lockheed Martin [NYSE: LMT] for long-lead tasks related to modernizing the first production C-5M Super Galaxy aircraft for the U.S. Air Force under the Reliability Enhancement and Re-engining Program (RERP). 

“The C-5M is critical to our nation’s strategic airlift capability,” said George Shultz, vice president, Lockheed Martin C-5 Modernization program.  “Flight test results to date are confirming that the airplane will reliably carry more cargo farther than any other airlift resource available today.  The post-modification savings will be achieved primarily through the commercially proven General Electric CF6 propulsion system which offers significant improvements in reliability, capability and added fuel efficiency.   These savings will pay for the modification itself and in addition save the USAF billions of dollars in future operations and support costs. This program will save $4 for every $1 invested over the life of the aircraft.”

This initial contract begins the second of two phases in C-5 modernization.  The Avionics Modernization Program provides the digital backbone and the RERP completes the process by offering significant improvements in reliability, maintainability and availability.  C-5 aircraft which have completed the AMP process have logged more than 10,000 hours with the new system, many of which were flown in support of Operation Iraqi Freedom.

The centerpiece for the second phase, RERP, is the new GE CF6-80C2 commercial engine, which has logged more than 300 million flight hours with 230 commercial and military customers. This engine delivers a 22 percent increase in thrust, a 30 percent shorter take-off roll, and powers a 58 percent faster climb which will ensure crew and cargo can get out of harm’s way faster. There are three C-5M Super Galaxy aircraft (two former C-5Bs, one former C-5A) in flight testing that have logged more than 260 flight hours.

The C-5 fleet has been the backbone of strategic airlift in every engagement since it entered service.  Modernizing the C-5 will ensure the U.S. Air Force can maintain the lift requirements established by the 2006 Quadrennial Defense Review and 2005 Mobility Capabilities Study. With more than 70 percent of its structural service life remaining, the C-5M Super Galaxy will continue to be a force enabler through 2040.

The C-5 is the only aircraft capable of carrying 100 percent of certified air-transportable cargo, with a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneously.  The C-5 can carry twice the cargo of other strategic airlift systems.

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.

Rob Fuller, 770-494-4057 or 770-330-1921; rob.fuller@lmco.com

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