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Lockheed Martin Missiles and Fire Control - Dallas Receives $143 Million for the PAC-3 Missile

DALLAS, TX, January 5th, 2000 -- Lockheed Martin Missiles and Fire Control - Dallas has received three contracts valued at more than $143 million for the Patriot Advanced Capability (PAC-3) Missile. All three contracts, issued in late December, were awarded by the U.S. Army Aviation and Missile Command (AMCOM) in Huntsville, Ala.

$48 MILLION LOW RATE INITIAL PRODUCTION

Lockheed Martin Missiles and Fire Control - Dallas was awarded a $48 million Low Rate Initial Production (LRIP) contract for the production of 20 PAC-3 Missiles. Production of the missiles will take place at the company's manufacturing facilities in Lufkin, Texas, and Camden, Ark.

"We're very pleased to see the PAC-3 Missile enter Low Rate Initial Production. This means we are one step closer to getting this missile in the hands of end-user, the U.S. soldier," said Mike Trotsky, vice president - air defense programs for Lockheed Martin Missiles and Fire Control - Dallas. "We believe the PAC-3 Missile will save lives."

With the LRIP contract signed, the PAC-3 Missile program is on schedule for First Unit Equipped (FUE), planned for CY 2001. The first unit to receive the PAC-3 Missile will be the 2nd Battalion, 1st Air Defense Artillery (ADA) of the 35th ADA Brigade at Fort Bliss, Texas. The 2-1 ADA is currently training with upgraded equipment capable of launching PAC-3 Missiles. This equipment includes prototype PAC-3 Missile canisters, Fire Solution Computers (FSC) and an Enhanced Launcher Electronics System (ELES). The early fielding of PAC-3 Missile ground equipment is permitting the troops for 2/1 ADA to become fully proficient in PAC-3 Missile operations prior to the fielding of the PAC-3 Missile.

$17.6 MILLION FOR PAC-3 MISSILE SPECIAL CONFIGURATION HARDWARE

Lockheed Martin Missiles and Fire Control - Dallas received a Special Configuration Hardware Contract for $17.6 million from AMCOM for the PAC-3 Missile.

The contract is a modification to the existing Long Lead Items contract awarded to the company in December 1997. The contract funds the procurement of a special four-pack munition, which includes a four-pack canister with three PAC-3 missiles and one missile mass simulator, along with additional flight test hardware.

Production of the missiles will take place at the company's manufacturing facilities in Camden, Ark., and Lufkin, Texas.

$78 MILLION PAC-3 MISSILE LONG LEAD TIME ITEM CONTRACT

Lockheed Martin Missiles and Fire Control - Dallas was awarded a Long Lead Items contract for $78 million from AMCOM for the PAC-3 Missile.

The contract, a modification to the PAC-3 Missile Low Rate Initial Production contract (LRIP), funds the procurement of PAC-3 Missile production items and associated ground launch equipment. Production of the missiles will take place at the company's manufacturing facilities in Camden, Ark., and Lufkin, Texas.

BACKGROUND

The PAC-3 Missile has had four consecutive successful engineering and manufacturing development (EMD) test flights since 1997. The first two EMD missions were successfully conducted with special instrumentation packages in place of the full-up PAC-3 Missile seeker. The missions were structured to verify critical systems and missile performance prior to conducting target intercept flight tests. The first PAC-3 Missile target intercept flight was on March 15, 1999. The second followed on September 16, 1999.

In addition to the four successful PAC-3 Missile EMD flight tests, the PAC-3's predecessor missile, the Extended-Range Interceptor, demonstrated three hits in a row during the demonstration/validation program in 1994. Two of those tests involved TBM targets and one involved an air-breathing target (simulating a cruise missile or aircraft).

Lockheed Martin Missiles and Fire Control - Dallas is the prime contractor responsible for the PAC-3 Missile segment upgrade, which consists of the PAC-3 Missile, missile canisters (in four-packs), the Fire Solution Computer and the Enhanced Launcher Electronics System.

The PAC-3 Missile is a high velocity, hit-to-kill missile and is the next generation Patriot missile being developed to provide increased capability against advanced theater ballistic missile, cruise missile and hostile aircraft. The PAC-3 Missile kills incoming targets by direct, body-to-body impact. The PAC-3 Missiles, when deployed in a Patriot battery, will significantly increase the Patriot system's firepower, since 16 PAC-3 Missiles load-out on a Patriot launcher, compared with four Patriot missiles.

Located in Dallas and Orlando, Lockheed Martin Missiles and Fire Control develops, manufactures and supports advanced combat, missile, rocket and space systems. The company is organized in six program/mission areas: Strike Weapons, Air Defense, Anti-Armor, Fire Control and Sensors, Fire Support and Product Development. Lockheed Martin Missiles and Fire Control is headed by President James F. Berry.

Craig Vanbebber, 972-603-1615
e-mail craig.vanbebber@lmco.com