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Lockheed Martin Receives $25.7 Million THAAD Field Support Contract

DALLAS, TX, April 22nd, 2010 -- Lockheed Martin [NYSE:LMT] has been awarded an Indefinite Delivery Indefinite Quantity (IDIQ) contract, with initial funding of $25.7 million, to provide support for the U.S. Army’s fielding of the Terminal High Altitude Area Defense (THAAD) Weapon System. The IDIQ contract consists of a four-year basic contract with five additional one-year options. The total maximum contract value is $435 million through 2019.

Lockheed Martin will initially support the Army during the THAAD Limited User Testing (LUT), a key step toward release of the THAAD system to the Warfighter. Additionally, Lockheed Martin will provide life cycle support for the THAAD system, including maintenance, supply support, product assurance and training. A team comprised of onsite field service representatives will work alongside the Warfighter to ensure THAAD’s operational readiness.

“We are pleased to continue our partnership with the Missile Defense Agency and the Army, ensuring our products perform reliably whenever needed,” said Tom McGrath, vice president and program manager for THAAD at Lockheed Martin. “Our integrated approach to logistics support puts Lockheed Martin shoulder to shoulder with the Warfighter, no matter where the system may be deployed.”

The first THAAD Battery (A-4 Battery) was activated at Fort Bliss, TX, in May 2008. Soldiers from the battery recently completed the Force Development Exercise and will operate the THAAD system during LUT beginning this month.

In October 2009, the U.S. Army activated the second THAAD Battery (A-2 Battery) also at Fort Bliss. Unit training for this Battery will begin in May 2010.

THAAD is the only missile defense system with the operational flexibility to intercept in both the endo- and exo-atmospheres. Since 2005 the program has conducted 10 successful flight tests, including six successful intercepts of both unitary and separating targets achieving 100 percent mission success. Additional testing is scheduled this year and will continue through 2011.

A key element of the nation’s Ballistic Missile Defense System (BMDS), THAAD is a Missile Defense Agency (MDA) program, with the program office located in Huntsville, AL. The Agency is developing the BMDS to defend the United States, its deployed forces, friends and allies against ballistic missiles of all ranges and in all phases of flight.

Lockheed Martin is a world leader in systems integration and the development of air and missile defense systems and technologies, including the first operational hit-to-kill missile. It also has considerable experience in missile design and production, infrared seekers, command and control/battle management, and communications, precision pointing and tracking optics, as well as radar and signal processing. The company makes significant contributions to all major U.S. missile defense systems and participates in several global missile defense partnerships.

Headquartered in Bethesda, Md., Lockheed Martin is a global security company that employs about 136,000 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 2009 sales of $45.2 billion.

Craig Vanbebber, (972) 603-1615

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