Lockheed Martin has received a $260 million not-to-exceed contract for a Missile Segment Enhancement (MSE) to the battle-proven Patriot Advanced Capability-3 (PAC-3) Missile. The MSE provides performance enhancements to the missile that will counter evolving threat advancements. The U.S. Army Aviation & Missile Command, Huntsville, AL, is the contracting agency.

The MSE program includes flight software, flight testing, modification and qualification of subsystems, production planning and tooling, and support for full Patriot system integration. The MSE program will span 51 months, with flight testing scheduled to begin in September 2006.

The flight test program includes one controlled test flight and two guided intercept tests against threat representative tactical ballistic missiles (TBMs). All testing will be conducted at White Sands Missile Range, NM.

"These enhancements are the natural, pre-planned evolution of a system that was baselined in 1994," said Steve Graham, vice president -- PAC-3 Missile Program for Missiles and Fire Control. "The MSE is a true spiral development that will enable a very capable interceptor to grow to the requirements of defeating new and evolving threats. These enhancements will assure that the PAC-3 Missile Segment of the Patriot Air Defense System will be capable of defeating these threats far into the future."

"This Missile Segment Enhancement is another example of the implementation of technology maturation to make a great system even better, giving the warfighter a higher level of protection and a larger defended footprint," said Ed Squires, senior vice president - Air Defense Programs for Lockheed Martin Missiles and Fire Control. "I have confidence in this team's ability to once again perform and meet the high expectations of our customer."

The 'hit-to-kill' PAC-3 Missile is the world's most advanced, capable and powerful theater air defense missile. It defeats the entire threat to the Patriot Air Defense System: tactical ballistic missiles (TBMs) carrying weapons of mass destruction, advanced cruise missiles and aircraft. PAC-3 Missiles significantly increase the Patriot system's firepower, since 16 PAC-3s load-out on a Patriot launcher, compared with four of the older Patriot PAC-2 missiles.

The current PAC-3 Missile production rate, authorized in October 2002, includes an FY'03 production quantity of 100 missiles and 108 missiles in FY'04. Production rates are ramping up and will continue through the next decade.

Lockheed Martin Missiles and Fire Control is prime contractor on the PAC-3 Missile Segment upgrade to the Patriot air defense system. The PAC-3 Missile Segment upgrade consists of the PAC-3 Missile, a highly agile hit-to-kill interceptor, the PAC-3 Missile canisters (in four packs), a fire solution computer and an Enhanced Launcher Electronics System (ELES). These elements will be integrated into the Patriot system, a high to medium altitude, long- range air defense missile system providing air defense of ground combat forces and high-value assets.

The PAC-3 Missile has been selected as the primary interceptor for the multi-national Medium Extended Air Defense System (MEADS). Managed by the NATO MEADS Management Agency (NAMEADSMA), MEADS is a model transatlantic development program focused on the next generation of air and missile defense. MEADS will focus on risk reduction, application of key technologies and validation of a system design incorporating the PAC-3 Missile.

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 employs about 125,000 people worldwide and is principally engaged in the research, design, development, manufacture and integration of advanced technology systems, products and services.

For additional information, visit our website:

http://www.lockheedmartin.com/

SOURCE: Lockheed Martin Missiles and Fire Control