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LOCKHEED MARTIN BREAKS GROUND ON NEW THAAD MISSILE PRODUCTION FACILITY IN TROY, ALABAMA; EXPANSION TO RAISE EMPLOYMENT OPPORTUNITIES IN PIKE COUNTY

TROY, AL, May 29th, 2002 -- Lockheed Martin broke ground today in Troy, Ala. on a new production facility for the Theater High Altitude Area Defense (THAAD) Weapon System that will eventually provide additional jobs for Pike County residents. The state-of-the-art facility will serve as the final assembly site for the $4.1 billion THAAD Weapon System, which is slated to have First Unit Equipped with U.S. forces in 2007.

The Pike County site, which currently employs about 230 employees, will assemble and test the THAAD missile in a field-deployable canister. Over the life of the program, up to 160 people could be added to the Troy staff to build the THAAD missile. In total, over the next 10-13 years, Lockheed Martin Missiles and Fire Control expects the Pike County Operations to grow to up to 500 employees to accommodate not only THAAD production, but also increased production for other products built at the site.

"We believe the THAAD weapon system is a tremendous program with a very bright future," said Stan Arthur, president of Lockheed Martin Missiles and Fire Control in Orlando, Fla. "THAAD and our lower-tier PAC-3 Missile, the newest version of the Patriot missile, will provide an umbrella of protection for our soldiers and assets throughout the world. Both THAAD and PAC-3 are hit-to-kill, kinetic energy weapons that literally strike incoming targets body-to-body. THAAD and PAC-3 will provide near leak-proof defense for our soldiers and allies."

The Lockheed Martin THAAD Team chose the Pike County Operations in January 2001 due to its outstanding performance building quality products, as well as its attention to cost-control and manufacturing detail on several other Department of Defense programs currently under production at that location.

"THAAD assembly operations here in Troy have the potential to bring literally hundreds of high-paying jobs into the state of Alabama over the next 10 to 12 years," Arthur said at the ceremony. "Our company's investment in this new facility will be around $13 million within that same time period to ensure schedule and efficiency objectives. We are confident that this operation will provide production excellence, technical expertise and the outstanding personnel required to produce the THAAD missile."

Currently, the Pike County operation encompasses 3,863 acres and 225,000 square feet of building space. The Pike County Operations performs final assembly, test and storage of missiles including the Hellfire II and Longbow Hellfire antitank missiles; the Javelin antitank missile; and the AGM-142 air-to-surface missile. The facility has also built the missile for the Patriot (PAC-2) air defense system, and is scheduled to build the U.S. Marine Corps' Predator missile system and the 21st century Joint Air-to-Surface Standoff Missile (JASSM). Pike County Operations has become known as the Lockheed Martin Center of Excellence for Strike Weapons.

Government management of the THAAD program is provided by the THAAD Project Office, U.S. Army PEO Air and Missile Defense, Huntsville, Ala., and the Missile Defense Agency (MDA), Washington, D.C.

Lockheed Martin Missiles and Fire Control develops, manufactures and integrates world-class air defense, fire support, strike weapon, naval munition, combat vision, anti-armor and advanced product solutions and systems for U.S. and international armed forces. Headquartered in Bethesda, Md., Lockheed Martin is a global enterprise principally engaged in the research, design, development, manufacture and integration of advanced technology systems products and services.

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