Lockheed Martin Awarded $78.6 Million Contract To Produce Upgrades For Aegis Weapon System

MOORESTOWN, NJ, 02/11/2009 --

MOORESTOWN, NJ, February 11, 2009 – Lockheed Martin [NYSE: LMT] was awarded a $78.6 million contract from the U.S. Navy to produce the next evolution of hardware that will be incorporated into the Aegis Modernization and Aegis Ballistic Missile Defense (BMD) programs.

The contract to upgrade the Aegis Weapon System includes two BMD 4.0.1 Combat System equipment sets, three Weapon System Modernization Upgrade equipment sets and one Multi-Mission Signal Processor (MMSP) equipment set.

"This production contract represents an orchestrated plan to deliver new capability to the fleet on an aggressive schedule, while maintaining the operational quality that defines Aegis today," said Kevin Kenney, Manager, Systems Acquisition Division, Program Executive Office Integrated Warfare Systems 1.0. "This work will field improved ballistic missile defense capability and set the stage for full combat system modernization on all of the Navy's Aegis destroyers."

The BMD 4.0.1 equipment set, a significant upgrade to previously-fielded systems, includes the Aegis BMD signal processor, providing greater capability in detecting, tracking and targeting ballistic missiles than the signal processor now aboard BMD-equipped ships. BMD 4.0.1 will be installed on current Aegis BMD ships beginning in 2011, along with the associated computing suite, kill assessment system and operating consoles.

The Aegis Modernization Upgrade equipment sets consist of new tactical computing equipment, upgraded consoles and displays, a secure voice communication system and associated peripheral equipment. The MMSP combines both anti-air warfare and BMD mission capabilities into one open architecture signal processor. The modernization equipment and MMSP will be installed in guided missile destroyers as part of Aegis modernization beginning in 2012.

"The modernization equipment sets and the Multi-Mission Signal Processor are all part of the continuing evolution of Aegis that will lead to the merger of Aegis Open Architecture and Aegis BMD in 2012," said Orlando Carvalho, vice president and general manager for Lockheed Martin's Surface/Sea-Based Missile Defense Systems line of business. "Aegis BMD 4.0.1 provides the next capability leap-ahead with the BMD Signal Processor, while the Multi-Mission Signal Processor is another step in the transition of those capabilities into open architecture, and is a key enabler to make all U.S. Navy guided missile destroyers BMD-capable."

The Navy's plan to fully modernize its Aegis-equipped cruisers and destroyers includes reconfiguring the Aegis Weapon System with Commercial-Off-The-Shelf (COTS) computing hardware and open system software. The weapon system installed through the Cruiser Modernization Program is fully open architecture, with the exception of the retained in-service signal processor. MMSP is part of the second phase of modernization, which also includes implementation of the Navy's Objective Architecture, and will begin installation on Aegis-equipped destroyers in 2012, accomplishing a significant step towards the transition to COTS and open system software for those ships.

The road to Aegis Open Architecture includes extensive systems engineering to reconfigure these systems with COTS computing hardware and open system software. The end result is a weapon system that will be able to absorb frequent technology refreshes to remain state-of-the-art and can readily accept upgrades in capabilities, whether they are accomplished through new development or through the integration of separately developed third party products.

The Aegis Weapon System is the world's premier proven naval defense system and the sea-based element of the U.S. Ballistic Missile Defense System. Its precision S-band SPY-1 radar and missile system seamlessly integrate with its own command and control. Its ability to detect, track and engage targets ranging from sea-skimming cruise missiles to ballistic missiles in space is unmatched.

The 89 Aegis-equipped ships currently in service around the globe have more than 1,000 years of at-sea operational experience and have launched more than 3,500 missiles in tests and real-world operations. In addition to the U.S., Aegis is the maritime weapon system of choice for Australia, Japan, Norway, South Korea and Spain.

Headquartered in Bethesda, Md., Lockheed Martin is a global security company that employs about 146,000 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 2008 sales of $42.7 billion.

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