Lockheed Martin Selects Diamond Phoenix as VIS/R(TM) Technology Licensee
Agreement Extends Diamond Phoenix's Full- and Split-Case Distribution Capabilities and Provides Lockheed Martin Further Penetration In Material Handling Markets

Diamond Phoenix Corp., a leading manufacturer of high-performance material handling carousel and order-fulfillment systems, has been selected by Lockheed Martin Systems Integration - Owego as the exclusive licensee to manufacture and sell products based on Lockheed Martin's advanced vertical integrated storage and retrieval (VIS/R) technology. VIS/R(TM) systems are a family of high-speed material handling sortation products from Lockheed Martin's Distribution Technologies business in Owego, N.Y.

By adding VIS/R products to its product line, Diamond Phoenix extends its commercial material handling offering to cover a complete range of full- and split-case distribution. Coupled with the company's leading light-directed product or parts retrieval systems, advanced storage and retrieval systems (AS/RS) and high-speed carousel systems, the enhanced product suite will fully integrate shipping, buffer storage, order consolidation, retrieval, order fulfillment, cross-docking and returns handling for applications operating on standard industry software.

"This agreement leverages automatic carousel sortation with Lockheed Martin's software and systems integration expertise," said Michael B. Schoultz, president of Lockheed Martin Distribution Technologies. "It's the right mix of technical and marketing skills bonding together to offer customers robust, highly reliable automatic carousel storage and retrieval systems that can be integrated within the distribution center."

"We'll be able to provide our customers total case handling and split case and order-fulfillment solutions unmatched by any other company in our industry as a result of this license agreement," added Larry Strayhorn, president of Diamond Phoenix. "Lockheed Martin's Distribution Technologies business is unique in its ability to offer end-to-end solutions that are fully integrated with other business systems."

Diamond Phoenix of Lewiston, Maine, is known for its leadership in order fulfillment, work-in-process buffering, materials management and carousel systems application and project management. Lockheed Martin Distribution Technologies is a leading supplier to the United States Postal Service and has extensive experience designing and installing postal automation systems in the United States, Australia and Europe. Key material handling products and systems include optical character recognition, mail tray management, package and magazine sorting and automatic airline assignment. Lockheed Martin also is a fast growing leader in commercial material handling and order fulfillment solutions.

About Diamond Phoenix

Diamond Phoenix Corporation is the industry leader in order-fulfillment systems providing a complete range of technologies targeted at today's requirements for high-speed logistics systems. Headquartered in Lewiston, Maine, the company has enjoyed explosive growth since being formed in 1992. Users have recognized its products as intelligent, robust, reliable and cost-effective technologies. Diamond Phoenix offers Diamondware(R) software systems, a complete suite of system monitoring, management and diagnostics reporting which are easily integrated with other software, warehouse management systems (WMS) and enterprise resource planning systems (ERP).

About Distribution Technologies

Lockheed Martin Distribution Technologies is a total systems integrator providing turnkey material handling and automation solutions to the distribution center, order fulfillment, air cargo and airline baggage handling, courier and postal material handling markets. It provides customers with project planning, system layout and design, software development, equipment installation, system integration, system maintenance, training and transition support. With facilities in Owego, N.Y., Orlando, Fla., and Tulsa, Okla., Distribution Technologies is a business unit of Lockheed Martin's Systems Integration - Owego business segment. The business segment is a leading provider of advanced technology products, services and systems integration solutions for defense, civil government and commercial customers worldwide.

For additional information on Lockheed Martin Distribution Technologies visit:

For additional information on Diamond Phoenix visit:

Diamondware is a registered trademark of Diamond Phoenix Corporation.

VIS/R is a trademark of Lockheed Martin Corporation.

SOURCE: Lockheed Martin Systems Integration

Contact: Jan Gottfredsen, 607-751-2598,, and
Mike Drake, 607-751-2598,, both of Lockheed Martin; Robert
Rienecke, 207-784-1381, Ext. 204,, and Pat St.
Pierre, 207-784-1381, Ext. 257,, both of Diamond