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Lockheed Martin-Led Team Submits Proposal To Design And Build U.S. Navy's Next Generation Narrowband Tactical Satellite Communications System

SUNNYVALE, Calif., February 17th, 2004 -- A team led by Lockheed Martin [NYSE: LMT] today submitted its proposal to design and build the Mobile User Objective System (MUOS), a next-generation narrowband tactical satellite communications system for the U.S. Navy that will provide significantly improved and assured communications for the mobile warfighter.

"This is an important national effort," said Manny DiMiceli, vice president and MUOS program manager, Lockheed Martin Space Systems, "and we have assembled a talented and dedicated team and submitted an affordable and innovative solution that fully meets the customer's requirements. We look forward to working with our Navy customer in designing and building a system that will greatly expand the capacity for UHF communications and meet the need for 'comms on the move' as the military increasingly relies on light and mobile forces in theatre."

The Lockheed Martin team includes General Dynamics, Scottsdale, Ariz., and Boeing Satellite Systems, El Segundo, Calif. Lockheed Martin Space Systems, Sunnyvale, Calif. is the prime contractor and systems integrator for the MUOS program.

The proposal submitted today is for the multi-billion dollar Risk Reduction, Design Development, Acquisition and Operations Support contract scheduled to be awarded by the U.S. Navy Space and Naval Warfare Systems Command (SPAWAR), San Diego, Calif. in June 2004. The proposal leverages the team's combined experience developing advanced military and commercial communications systems and is based on architecture and risk reduction activities conducted as part of a 14-month Component Advanced Development contract awarded in Sept. 2002.

"As team leader for both the user-entry and ground segments of the MUOS program, General Dynamics is supplying a secure ground network, and satellite management services critical in meeting the needs of warfighters," said Ron Taylor, a vice president of General Dynamics. "The Lockheed Martin/General Dynamics/Boeing team offers a solid technological solution and we are well-equipped to successfully execute this program."

MUOS is a key element of the DoD's Advanced Narrowband Communications system. Over the next two decades, MUOS will replace the current Ultra High Frequency Follow-On (UFO) system. The Navy's UFO satellites ? the last of which was launched in December 2003 ? currently provide narrowband tactical satellite communications to Joint Forces and Coalition partners. Spacecraft in the UFO system were launched aboard Lockheed Martin-built Atlas rockets between 1993 and 2003.

"Throughout our 15-year partnership with the U.S. Navy to develop and deploy the UFO satellite fleet, we have witnessed great leadership from the Navy in providing vital global communications services to Armed Forces personnel worldwide," said Dave Ryan, vice president and general manager of Boeing Satellite Systems. "We look forward to once again working with our Navy customer to deliver an integrated solution for the MUOS mission."

Boeing Satellite Systems, the satellite-manufacturing arm of Boeing Integrated Defense Systems, is a major provider of space systems, communication satellites, and payloads for national defense, science, environmental and commercial applications.

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 67,600 people worldwide and had 2003 revenues of $16.6 billion. The company has leading market positions in mission-critical information systems and technologies, land and amphibious combat systems, shipbuilding and marine systems, and business aviation. More information about the company can be found on the World Wide Web at http://www.generaldynamics.com

Steve Tatum, 408-742-7531; e-mail, Stephen.o.tatum@lmco.com



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