Lockheed Martin achieved significant milestones on several critical missile defense programs during 2006, and was the only company to lead the development of new technology for boost-, mid-course- and terminal-phase systems.

"In today's environment of increasingly aggressive and pervasive missile threats, Lockheed Martin has demonstrated capable products that meet the current needs of our nation and allies," said David Kier, Lockheed Martin vice president and managing director of missile defense. "We have a strong record of performance and mission success. Several of our missile defense products are operational. These proven elements of the nation's ballistic missile defense system provide a high level of confidence for other systems we are currently developing to provide even greater protection for deployed troops and civilian populations."

  Lockheed Martin's operational missile defense milestones in 2006 included:

   - Aegis BMD successfully intercepted a separating ballistic missile
     target using the Aegis BMD 3.6 Weapon System, the latest upgrade with
     enhanced multi-mission capability.  This test was the first to include
     international participation: The Japanese destroyer Kirishima (DDG
     173), equipped with the Aegis Weapon System, tracked the ballistic
     missile target.  The Navy and Missile Defense Agency certified Aegis
     BMD 3.6 for tactical deployment in August, marking the first system of
     the BMDS to obtain full certification.  An unsuccessful test in
     December, attributed to an incorrect system setting, is still being
     analyzed and will be rescheduled this spring.

   - Lockheed Martin received a $376 million contract from the U.S. Army
     Aviation and Missile Command (AMCOM) for hardware and services
     associated with the combat-proven Patriot Advanced Capability-3 (PAC-3)
     Missile program.  The contract includes production of 112 hit-to-kill
     PAC-3 Missiles, launcher modification kits, spares and other equipment,
     as well as program management and engineering services.  The initial
     delivery of the PAC-3 Stockpile Reliability Test Missiles to the U.S.
     Army marked the first major milestone in the operations and support
     phase of the program.  The PAC-3 Missile conducted two successful
     flight tests in 2006.

   - The Command, Control Battle Management and Communications program
     (C2BMC) completed over 14 spiral deliveries in 2006 reflecting a very
     flexible and rapid delivery capability.  C2BMC is operational across
     fourteen time zones and is the "S" in the Ballistic Missile Defense
     System, integrating the various elements of the entire system.  The
     Forward Based X-Band Radar was integrated into the system in 2006
     integrating another long range sensor into the overall BMDS.  In 2007
     C2BMC will start to implement a new requirement for concurrent testing
     and training across the entire BMDS while simultaneously conducting
     real world operations, referred to as CTTO.

   - MDA's Targets and Countermeasures program successfully completed three
     missions in 2006, launching the scientific payloads for two missions of
     the MDA's Critical Measurements/Countermeasures program and providing
     the target missile with a separating reentry vehicle for a test of the
     Aegis Ballistic Missile Defense Weapon System.  The program, for which
     Lockheed Martin is the prime contractor, has achieved a 100 percent
     mission success record since launching its first target in 2005.

  Lockheed Martin's next-generation capability milestones in 2006 included:

   - Lockheed Martin was awarded a $619 million contract from the Missile
     Defense Agency (MDA) to begin production of the Terminal High Altitude
     Area Defense (THAAD) weapon system.  The contract for the first two
     THAAD fire units includes 48 interceptors, six launchers and two fire
     control and communications units.  The system is scheduled for fielding
     in Fiscal Year 2009.  The THAAD weapon system transitioned from
     development to production, and conducted two successful flight tests in
     2006.  The first test demonstrated the entire weapon system, utilizing
     all major elements of the system and proving its capability.  A second
     test last year resulted in the intercept of a Hera unitary target.

   - The performance of the Airborne Laser's (ABL's) Beam Control/Fire
     Control system, developed by Lockheed Martin, a partner in the Boeing
     ABL team, was confirmed in a series of ground tests inside the
     aircraft.  The tests verified the performance of the illuminator lasers
     with the Beam Control/Fire Control system, and demonstrated the ability
     to control the path of the illuminator lasers and the high-energy laser
     beam as it travels at the speed of light toward its target.

   - The High Altitude Airship (HAA(TM)) program made significant progress
     toward building the prototype vehicle.  Successful results from the
     fabric lifetime cyclic testing proved the prototype design and the
     battery successfully passed a simulated year of mission flight testing
     in the environmental chamber.  In addition, MDA is preparing to
     exercise the Technology Improvement Project contract option to evolve
     key technologies for the operational vehicle.

   - Initial testing of the kill vehicle divert thruster for the MDA's
     Multiple Kill Vehicle payload system was completed.  In the event of an
     enemy launch, a single interceptor equipped with the Multiple Kill
     Vehicle Payload System will destroy the enemy lethal reentry vehicle
     along with any countermeasures deployed to try to spoof the missile
     defense system.

   - A major performance enhancement with the Medium Extended Air Defense
     System (MEADS) program resulted from changing the baseline interceptor
     to the PAC-3 Missile Segment Enhancement (MSE) Missile, which
     significantly extends the operational envelope of the baseline PAC-3
     Missile.  The Lockheed Martin-led transatlantic MEADS program
     successfully entered its preliminary design review event cycle that
     will culminate in design approval during 2007.

   - The UK Ministry of Defence selected Team Athena, led by Lockheed Martin
     UK, as the contractor for the Land Environment Air Picture Provision
     (LEAPP) program.  LEAPP provides the ability to coordinate and strike
     effectively, by providing accurate pictures and data to land commanders
     during operations.

Lockheed Martin plays a critical role in all three segments of the nation's ballistic missile defense system (BMDS) being used today. In addition to the products that comprise its operational defense systems, Lockheed Martin provides the backbone systems that integrate the sensors, command and control, and weapon system elements of the BMDS. The corporation is also focused on next-generational capabilities, and provides targets and other methods necessary for testing system elements.

Lockheed Martin is a world leader in systems integration and the development of air and missile defense systems and technologies, including the first operational hit-to-kill missile defense system. It also has considerable experience in missile design and production, infrared seekers, command and control, battle management, and communications, precision pointing and tracking optics, as well as radar and signal processing. The company makes significant contributions to major U.S. missile defense systems and participates in several global missile defense partnerships.

Headquartered in Bethesda, Md., Lockheed Martin employs about 140,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

For additional information, visit our web site: http://www.lockheedmartin.com/, keyword: Missile Defense

SOURCE: Lockheed Martin