U.S. Army Awards Lockheed Martin $60 Million M-TADS/PNVS Production Contract

ORLANDO, FL, August 1, 2011 --

The U.S. Army recently awarded Lockheed Martin [NYSE: LMT] a $60 million follow-on production contract for the combat-proven Modernized Target Acquisition Designation Sight/Pilot Night Vision Sensor (M-TADS/PNVS), also known as Arrowhead®, for the AH-64D Apache attack helicopter.

The $60 million Lot 8 base contract includes 23 Arrowhead kits for the National Guard, plus U.S. Government and Foreign Military Sales (FMS) spares and support. The contract also includes options for up to 46 systems and spares for delivery to the U.S. Army and an undisclosed FMS customer. Total contract value including the base and all options, if awarded, could reach approximately $290 million. The Lot 8 contract extends production through August 2013 for the base requirements, and January 2015 if all options are awarded.

"Lot 8 represents our continued successful partnership with Lockheed Martin and will provide the Arrowhead upgrades that will complement the conversion of our National Guard Apache battalions from the AH-64A to the AH-64D Longbow," said Lt. Col. Steve Van Riper, U.S. Army Apache Sensors product manager. "These Arrowhead systems will provide AH-64D aviators with a combat-proven sensor capability required to support our soldiers and international allies around the world."

The Arrowhead kit modernizes the U.S. Army's TADS/PNVS, known as the "eyes of the Apache," by upgrading the infrared sensors and associated electronics. Arrowhead provides Apache pilots the most advanced long-range, electro-optical precision engagement and pilotage capabilities, ensuring safe flight during day, night and adverse-weather missions.

"The highly reliable Arrowhead system saves lives," said Matt Hoffman, Arrowhead program director in Lockheed Martin's Missiles and Fire Control business. "Arrowhead has demonstrated operational performance second to none, and this contract reflects the confidence our customers have in this low maintenance, highly mission capable system for the Apache."

Lockheed Martin rolled out the first Arrowhead kit to the U.S. Army in May 2005, and completed integration on the first Apache helicopters in June 2005.

Headquartered in Bethesda, Md., Lockheed Martin is a global security company that employs about 126,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The Corporation's 2010 sales from continuing operations were $45.8 billion.

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

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