Following an analysis of strategic options in response to ongoing overcapacity issues in the commercial satellite-manufacturing marketplace, Lockheed Martin today announced it will advance and extend its aggressive realignment initiative, begun in July 2001, to consolidate and streamline management, engineering and manufacturing organizations within its Commercial Space Systems (LMCSS) business, which is located in Newtown, PA.

"We have evaluated a wide variety of strategic options for our commercial satellite manufacturing business and have determined our best course is to build on our record of mission success and cost reduction initiatives, with a goal of improving competitiveness and generating better value," said Robert J. Stevens, president and chief operating officer for Lockheed Martin. "Rather than aligning LMCSS with another satellite manufacturer, or discontinuing operations, we will continue to strengthen our competitive posture by improving efficiencies and focus on winning new business in 2003."

Al Smith, executive vice president of Lockheed Martin Space Systems reaffirmed the company's dedication to mission success: "Our commercial space team continues to achieve an impressive record of 100 percent mission success and we will remain relentlessly focused on ensuring product reliability to enhance our ability to meet our customers needs and win new business in 2003."

Last year, five satellites, designed and built by LMCSS for customers worldwide were successfully launched, including EchoStar VII for EchoStar Orbital Corporation; NSS-6 and NSS-7 satellites for New Skies Satellites; N- STAR c for NTT DoCoMo, Japan's largest wireless telecommunications provider; and most recently, Nimiq 2 for Telesat Canada. The launch of Nimiq 2 represented the 21st straight successful launch of an A2100 spacecraft. The first A2100 was launched in 1996 and are all currently operational. The company now is gearing up for the launch of Rainbow, a high-power A2100 satellite for Cablevision Systems Corp. of Bethpage, N.Y. The satellite is scheduled to launch in the first half of 2003 aboard an Atlas V rocket.

LMCSS markets, designs and builds geostationary and non-geostationary telecommunications satellites for customers worldwide. The company's A2100 geosynchronous spacecraft is designed to meet a wide variety of telecommunications needs ranging from Ka band/broadband services, fixed satellite services in a Ku-band payload configuration, to high-power direct broadcast services using the Ku-band frequency spectrum. The A2100's modular design features a reduction in parts, simplifying construction, increasing on- orbit reliability and reducing weight and cost.

Customers include: Asia Cellular Satellite International, China Orient Telecomm Satellite Co. Ltd, EchoStar Communications Corporation, SES Americom, Japan Satellite Systems Inc., Korea Telecom, PT Telkomunikasi (TELKOM), New Skies Satellites N.V., NTT Mobile Communications Inc., Space Communications Corporation, Telesat Canada and Cablevision Systems Corp.

LMCSS is an operating unit of Lockheed Martin Space Systems Company, one of the core business areas of the Lockheed Martin Corporation. Lockheed Martin has a 41-year heritage of building reliable spacecraft for commercial and military customers, having launched more than 875 spacecraft and clocking nearly 1,500 years of on-orbit performance experience.

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. The Corporation's core businesses are systems integration, space, aeronautics, and technology services. Employing about 124,000 people worldwide, Lockheed Martin had 2001 sales of $24 billion.

For additional information, visit the website: http://www.lockheedmartin.com/ .

SOURCE: Lockheed Martin