Lockheed Martin Corporation


Lockheed Martin, Microsoft Form Alliance Focused on U.S. Government Market

Lockheed Martin Corporation and Microsoft Corporation today announced the formation of a strategic alliance to collaboratively pursue new business opportunities in the federal information technology market.

"The alliance enables government agencies to draw on the combined expertise of the foremost federal systems integrator and the world leader in business software and Internet connectivity," said Robert B. Coutts, Executive Vice President of Lockheed Martin's Systems Integration business area. "This alliance positions our companies to deliver unparalleled, integrated services to customers, providing greater efficiency in operations and enhanced service to citizens."

The alliance builds on existing relationships between Lockheed Martin and Microsoft on projects including the U.S. Air Force Integrated Space Command and Control (ISC2) program, a comprehensive upgrade of the North American Air Defense (NORAD) Cheyenne Mountain Complex; the integrated warfare system for the U.S. Navy's next nuclear-powered aircraft carrier, CVN 77; the Global Command Support System-Air Force; and the U.S. Defense Department's Defense Messaging System. The companies also are members of the Blue Team, which is competing for the Navy's next-generation land attack destroyer, DD 21, and are collaborating on development of new products and services to link mail processing and information technology.

"This alliance is a win-win for both companies and the U.S. government customers we serve," said Pete Hayes, Vice President, Microsoft Government. "As our customers increasingly seek commercial off-the-shelf technologies for their complex systems requirements, this alliance enables Microsoft and Lockheed Martin to offer technically proven, cost-effective solutions to U.S. military and civil government agencies."

Under their agreement, Lockheed Martin and Microsoft will work cooperatively to identify and pursue new business opportunities in the federal marketplace, principally involving information technology programs. The companies will establish cross-functional business development and technology teams to focus their core competencies on existing and emerging opportunities, identify process improvements and exchange best practices.

Lockheed Martin will concentrate initially on deployment of Microsoft technology in three areas:

  * Windows Distributed interNet Architecture (Windows DNA) 2000, the next
    generation of the Microsoft platform for building distributed Web

  * Visual Development Environment, which supports increased developer
    productivity by bringing together all the tools necessary to build and
    manage a Web application within a single work space; and

  * Information Assurance, to ensure solutions are compliant with key
    federal cryptographic standards important to the protection of U.S.
    government communications.

The alliance agreement also provides for the two companies to jointly develop new business proposals, and to train and certify Lockheed Martin technical personnel as Microsoft Certified System Engineers and Microsoft Certified Solution Developers.

Each of Lockheed Martin's four principal business areas -- aeronautics, space, systems integration and technology services -- will have access to Microsoft technologies and products under terms of the alliance agreement. Systems Integration -- with a customer base spanning all of the U.S. military services and civil government agencies including the Departments of Commerce, Justice, Transportation and Treasury -- will lead the relationship. Nearly $18 billion of Lockheed Martin's $25.3 billion in 2000 sales were to the U.S. government.

"Given the desire of federal agencies to rapidly move toward an e-commerce model, Lockheed Martin and Microsoft together can provide advanced solutions that enable multiple systems to operate seamlessly in a highly secure fashion," Coutts said.

Headquartered in Bethesda, Maryland, Lockheed Martin is a global enterprise principally engaged in the research, design, development, manufacture and integration of advanced technology systems, products and services. For additional information, visit the Lockheed Martin website at http://www.lockheedmartin.com/ .

Microsoft Government, based in Washington, D.C., provides software, services and Internet technologies for federal, state and local government customers worldwide. For additional information, visit http://www.microsoft.com/government/ .

Microsoft(R) and Windows(R) are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.


SOURCE: Lockheed Martin

Contact: Pete Harrigan of Lockheed Martin, 301-897-6171, or email:
pete.harrigan@lmco.com; or Keith Hodson of Microsoft Corporation,
202-274-1485, or email: khodson@microsoft.com

Company News On-Call: http://www.prnewswire.com/comp/534163.html or fax,
800-758-5804, ext. 534163