The U.S. Navy today
awarded an $812.5 million contract to Lockheed Martin for the
continued development of the Missile Defense Agency’s Aegis Ballistic Missile
Defense (BMD) capability.

Under the contract, Lockheed Martin is responsible for developing and
fielding the sea-based element of the Ballistic Missile Defense System. The
contract includes the development and integration of the Aegis Weapon System
upgrades, Vertical Launching System upgrades, Command and Control System
upgrades, Aegis BMD signal processor efforts, and Flight Test support
including equipment, computer programs and system engineering required to
accomplish the Aegis BMD mission.

The work will be performed in Moorestown, NJ, and Baltimore, MD, and is
expected to be complete in 2006. The company anticipates approximately 50 – 65
new jobs will be created.

“The U.S. Navy and the Missile Defense Agency have set clear expectations
for success of the sea-based missile defense program,” said Fred P. Moosally,
president of Lockheed Martin’s Maritime Systems and Sensors unit. “The
Lockheed Martin team understands that our customers are counting on us to
deliver, and we will.”

The Aegis BMD element of the nation’s BMD System will provide the
capability for Aegis-equipped cruisers to use hit-to-kill technology to
intercept and destroy short- and medium-range ballistic missiles.
Additionally, designated Aegis-equipped destroyers will be modified to expand
the ability of Aegis BMD to provide surveillance and tracking of
intercontinental ballistic missiles, and work with other BMD System elements
to provide advance warning for the defense of the nation, deployed U.S. forces
and allies.

The Aegis Weapon System includes the most powerful and robust naval
surface tactical radar in the world, SPY-1. Equally advanced and tightly
integrated Weapon Control and Command and Control subsystems support it. When
paired with the MK 41 Vertical Launching System, it is capable of delivering
missiles for every mission and threat environment in naval warfare. The system
is currently deployed on 66 U.S. Navy Aegis-equipped ships on station around
the globe, and 23 more ships are planned. Aegis is the primary naval weapon
system for Japan, it is part of two European ship construction programs — the
Spanish F-100 and the Norwegian New Frigate — and the Republic of Korea
recently selected Aegis for its newest class of destroyers.

Headquartered in Bethesda, MD, Lockheed Martin employs about 125,000
people worldwide and is principally engaged in the research, design,
development, manufacture and integration of advanced technology systems,
products and services.

For additional information on Lockheed Martin Corporation, visit: