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Sunnyvale, Ca., October 26th, 2005 -- The Mobile User Objective System (MUOS) team led by Lockheed Martin [NYSE: LMT] has successfully completed on schedule the Preliminary Design Review (PDR) phase with its U.S. Navy customer. The PDR validated the detailed MUOS design to ensure that the system will meet or exceed the warfighter’s requirements for the next generation narrowband tactical satellite communications system.

With this milestone, the team has quickly turned its focus to the execution of the Critical Design Review (CDR) phase. The team will also begin the purchase of long lead products in preparation for the start of production in late 2006. The first MUOS satellite is scheduled for on-orbit hand over to the Navy in 2010.

"Our MUOS team continues to execute on schedule, on budget and is rapidly moving forward to provide warfighters with the critical capability of real-time communications on the move," said Leonard F. Kwiatkowski, vice president and general manager, Lockheed Martin Military Space Programs. "The team completed a highly efficient and successful PDR phase, demonstrating to our Navy customer that the MUOS design will meet the warfighter’s needs.”

MUOS will provide significantly improved and assured communications for U.S. mobile warfighters. With the adaptation of state-of-the art 3rd Generation (3G) mobile technology, the Lockheed Martin design will deliver simultaneous voice, data and video services as well as the ability to increase capacity and features over the life of the program. Users of the current Ultra High Frequency Follow-On (UFO) system will have improved service and complete interoperability with MUOS to ensure a smooth transition.

The successful completion of the PDR phase represents the culmination of the system level PDR, as well as 13 segment and subsystem design review events with industry teammates General Dynamics C4 Systems, Scottsdale, Ariz., the MUOS user-entry and ground system provider; and The Boeing Company which will provide the UFO legacy payload.

“The MUOS ground system team is aggressively leveraging 3rd Generation (3G) mobile terrestrial communication technologies to enable state-of-the-art narrowband communications capabilities for the Warfighter” said John Weidman, vice president of network systems and information services for General Dynamics C4 Systems. “This milestone is a significant accomplishment.”

Boeing’s heritage building UFO spacecraft is a key component of the MUOS program.

“Successful completion of the PDR phase demonstrates that the design of the Boeing-built payload will deliver enhanced narrowband connectivity to the U.S. Navy. We are proud of our role in providing ubiquitous voice, video and data to warfighters on the ground, in the air, and on the seas,” said Michael Gianelli, Boeing’s vice president of national security communications programs.

Last year, Lockheed Martin Space Systems, Sunnyvale, Calif. was awarded a $2.1 billion contract to build the first two satellites and associated ground control elements by the U.S. Navy. The Navy’s Program Executive Office for Space Systems, Chantilly, Va., and its Communications Satellite Program Office, San Diego, Calif., are responsible for the MUOS program. The contract also provides for options on three additional spacecraft. With all options exercised, the contract for up to five satellites has a total potential value of $3.26 billion.

Steve Tatum, 408-742-7531; e-mail,

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