Integrated Coast Guard Systems issued a statement today to clarify published reports regarding the award of the Helicopter Interdiction Tactical Squadron, or HITRON, Helicopter Lease with Agusta Aerospace Corporation.

On Jan. 31, 2003, ICGS completed negotiations with Agusta Aerospace Corporation, Philadelphia, Pa., a subsidiary of Agusta SpA, to bring the HITRON lease contract, previously held between the Coast Guard and Agusta Aerospace Corporation, under the scope of the U.S. Coast Guard's Deepwater program. This contract covers a one-year lease term, for a value approaching $12 million, renewable for up to four additional years. The contract covers the current eight helicopters, with an option to add up to two (2) additional aircraft, at the direction of the Coast Guard.

The HITRON force was established in 2000, when the Coast Guard awarded a contract to Agusta Aerospace for eight MH-68A helicopters, dedicated versions of the twin-engine A109 powered aircraft used primarily to interdict fast- moving boats carrying illegal narcotics. These helicopters usually deploy from Coast Guard cutters.

Under the current award, Agusta Aerospace has been awarded a subcontract from Lockheed Martin Naval Electronics & Surveillance Systems, who is a prime contractor to ICGS. This award brings management of the HITRON lease under the scope of the Deepwater program. As missions of homeland security continue to increase the demands placed on Coast Guard operations, this armed air capability provides the Coast Guard with additional tools to identify and prosecute threats from the sea.

The Coast Guard's Integrated Deepwater System is a critical and far- reaching multi-year program to modernize and replace aging ships and aircraft, and improve command and control and logistics systems. It is the largest and most innovative acquisition in the history of the Coast Guard. In June 2002, the Coast Guard awarded the Deepwater contract to Integrated Coast Guard Systems, a joint venture of Lockheed Martin and Northrop Grumman. ICGS is managing the Integrated Coast Guard System contract jointly with the U.S. Coast Guard.

For additional information on Integrated Coast Guard Systems, visit: http://www.icgsdeepwater.com/

For information on Northrop Grumman Corporation, visit: http://www.northropgrumman.com/

For information on Lockheed Martin Corporation, visit: http://www.lockheedmartin.com/

SOURCE: Integrated Coast Guard Systems