Lockheed Martin Corporation


Lockheed Martin NE&SS-Moorestown Gets First Payment For Five Frigate Systems, Marks Norway Day

Lockheed Martin Naval Electronics & Surveillance Systems (NE&SS)-Moorestown today received its first subcontract payment from a Spanish shipbuilder for five integrated weapon systems (IWS) for the Royal Norwegian Navy's new frigate program at a multi- cultural event at its facility heralded as "Norway Day."

Separately, NE&SS-Surface Systems President Fred P. Moosally and U.S. Congressman Jim Saxton were pronounced ceremonial Vikings by way of their honorary induction into the Leif Ericson Society International.

Rafael Rey, Combat Systems Lead representing Empresa Nacional Bazan (E.N. Bazan) of Spain, presented Moosally with a check for more than $22 million as the first payment on a 10-year contract for five integrated weapon systems for the advanced frigates. The Bazan/Lockheed Martin team was awarded the contract for five frigates by the Royal Norwegian Navy in June of this year. Bazan, the program's prime contractor, will build the frigates designed to protect Norway against subsurface, surface and air threats. Approximately 200 engineers and manufacturing personnel are expected to be involved with the program at the plant, which employs more than 3,500.

The overall value of the program is approximately 12 billion Norwegian krone (approximately $1.5 billion U.S.), with Lockheed Martin receiving about a third of that amount. Norwegian industry will provide key elements of the IWS and will participate in the shipbuilding effort. Other Norwegian companies on the program include Kongsberg Defence & Aerospace (KDA), NERA, Mjellum & Karlsen, among others.

"We gather here today to celebrate the beginning of an exciting international partnership -- a partnership that will provide the people of Norway with a new, state-of-the-art frigate. A partnership that will provide the members of our team with the pride that comes from knowing Norwegian sailors and citizens will be protected by the best integrated weapon system in the world," said Moosally.

"Today, we pay tribute to Norway, its beauty, its culture, and foremost its people, whose contributions to and dedicated support of international operations have become significant factors in the development of worldwide stability and democracy," said New Jersey's Congressman from the Third Congressional District Jim Saxton. "In particular, I would like to specifically highlight Norway's exemplary commitment to international peacekeeping operations, military volunteer support and participation in various multilateral economic and humanitarian programs.

"I also believe that the Norwegian New Frigate with its resultant transatlantic defense and industrial ties, significantly contributes to international security -- and the stability of our local economy and the future of high-tech workers at Lockheed Martin," Saxton added.

Lockheed Martin NE&SS-Moorestown employees had the opportunity to experience a "Taste of Norway," sampling Norwegian cuisine, viewing exhibits of Norwegian culture and lore -- including a 40-foot replica of a Viking ship that was provided for the day's activities by the Leif Ericson Society International. Two lucky employees also won trips to Norway to experience the country first hand.

E.N. Bazan was established in 1742 as a shipyard devoted to the Royal Spanish Navy and is now fully dedicated to design and construction of vessels for both the Spanish Navy and the international market. E.N. Bazan employs more than 5,000 people in three facilities. Last month, officials from Lockheed Martin and Bazan marked the completion of the first of four integrated weapon system for Spain's new F-100 class of frigates at the plant with a "pull-the-plug" ceremony attended by employees, and representatives of Spanish and U.S. Navies and Spanish industry.

Lockheed Martin NE&SS-Moorestown, headquartered in Moorestown, New Jersey, is one of five major lines of business comprising the Lockheed Martin NE&SS business segment. NE&SS provides surface ship and submarine combat systems, antisubmarine warfare and ocean surveillance systems, missile launching systems, radar and sensor systems, ship systems integration services and other advanced systems and services to customers worldwide. NE&SS is an operating segment of the Lockheed Martin Systems Integration business area.

Headquartered in Bethesda, Maryland, Lockheed Martin Systems Integration is one of four principal business areas within the Lockheed Martin Corporation . The other business areas are aeronautics, space and technology services.

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For additional information on NE&SS-Moorestown, visit: http://ness.external.lmco.com/nessm/

SOURCE: Lockheed Martin Naval Electronics & Surveillance Systems-Moorestown

Contact: Jim Tierney, 856-722-5848, or jim.g.tierney@lmco.com, or Rich
Palmay, 856-722-2708, or richard.l.palmay@lmco.com, both of Lockheed Martin