Lockheed Martin has received a contract for $341 million from the U. S. Army Aviation and Missile Command (AMCOM) for the production of the Patriot Advanced Capability (PAC-3) Missile.

Under the contract, Lockheed Martin Missiles and Fire Control will produce 88 PAC-3 Missiles plus other associated hardware.

Production of all equipment will take place at the company's manufacturing facilities in Dallas and Lufkin, Texas, and the PAC-3 Missile All-Up Round facility in Camden, Ark. The first production PAC-3 Missiles were delivered to the Army in September 2001.

"The PAC-3 Missile is the world's most effective hit-to-kill air defense missile, and we're pleased to provide the U.S. Army with this powerful system," said Ed Squires, senior vice president - Air Defense Programs for Lockheed Martin Missiles and Fire Control. "The PAC-3 Missile works. It is a quantum leap ahead of any other air defense missile when it comes to the ability to protect the warfighter."

Lockheed Martin Missiles and Fire Control is the prime contractor responsible for the PAC-3 Missile Segment upgrade, which consists of the PAC-3 Missile, missile canisters, the Fire Solution Computer (FSC) and the Enhanced Launcher Electronics System (ELES).

The PAC-3 Missile is a high velocity, hit-to-kill missile and is the next generation Patriot missile being developed to provide increased capability against advanced theater ballistic missile, cruise missile and hostile aircraft. The PAC-3 Missile kills incoming targets by direct, body-to-body impact. The PAC-3 Missiles, when deployed in a Patriot battery, will significantly increase the Patriot system's firepower, since 16 PAC-3 Missiles load-out on a Patriot launcher, compared with four Patriot PAC-2 missiles.

The performance of the PAC-3 Missile during its testing phases over the past several years is unequaled by any other air defense missile. All PAC-3 Missile testing to-date has been deemed by the Army and DOT&E community as threat representative and operationally realistic. During the flight test program the PAC-3 Missile demonstrated hit-to-kill lethality against tactical ballistic missiles (TBMs) and advanced cruise missiles, as well as full-scale aircraft.

PAC-3 is one of the world's most sophisticated technologies. The PAC-3 Missile flights:

   --  September 29, 1997 - Successful Control Test Flight
   --  December 15, 1997 - Successful Control Test Flight
   --  March 15, 1999 - Successful intercept TBM
   --  September 16, 1999 - Successful intercept of TBM
   --  February 5, 2000 - Successful intercept of TBM
   --  July 22, 2000 - Successful intercept of low-flying cruise missile
   --  July 28, 2000 - Successful intercept of low-flying cruise missile
   --  October 14, 2000 - Successful intercept of TBM
   --  March 31, 2001 - First "Tactical Ripple Mode" test - successful
       intercept of TBM by first PAC-3 Missile; successful tactical self-
       destruct of second PAC-3 Missile
   --  July 9, 2001 - Successful intercept of an F-4 remotely piloted
       aircraft by PAC-3 Missile; second PAC-3 Missile fails to intercept
       TBM due to communications bus anomaly
   --  October 19, 2001 - Successful intercept of advanced cruise missile
   --  February 16, 2002 - PAC-3 Missile received an incorrect target
       location cue from the Patriot ground system: intercept was not
       possible, although the missile functioned as designed
   --  March 21, 2002 - Successful intercept of TBM by first PAC-3 Missile;
       backup missile did not launch due to failure of a generator powering
       the launcher
   --  April 25, 2002 - First of two schedule PAC-3 Missiles did not fire
       (anomaly identified and corrected) - Second PAC-3 Missile hit target
       but did not kill the warhead
   --  May 30, 2002 - Successful intercept of TBM; backup missile did not
       fire (anomaly identified and corrected)

In addition to these PAC-3 Missile flight tests, the PAC-3's predecessor missile, the Extended-Range Interceptor, demonstrated three hits in a row during the demonstration/validation program in 1994. Two of those tests involved TBM targets and one involved an air-breathing target (simulating a cruise missile or aircraft). The predecessor to missile to ERINT also achieved three consecutive body-to-body intercepts of targets in the late- 1980s.

Lockheed Martin Missiles and Fire Control develops, manufactures and integrates world-class air defense, fire support, strike weapon, naval munition, combat vision, anti-armor and advanced product solutions and systems for U.S. and international armed forces. Headquartered in Bethesda, Md., 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 on Lockheed Martin Corporation , visit our website: www.lockheedmartin.com

SOURCE: Lockheed Martin Missiles and Fire Control