Lockheed Martin LCS

October 18, 2004

Lockheed Martin LCS passes major milestone

With the successful on-schedule completion of the Initial Critical Design Review (ICDR), the Lockheed Martin [NYSE: LMT] Littoral Combat Ship (LCS) team is proceeding to Final Critical Design Review--the last program milestone leading to authorization to begin construction of the first LCS.

“Lockheed Martin thoroughly addressed all the required elements and demonstrated their commitment to the LCS program, schedule and budget with disciplined attention to detail and a can-do management approach,” said Capt. Don Babcock, the Navy’s LCS program manager. “The Lockheed Martin team is on schedule and on target to provide the Navy with the first in a new class of vessel that will transform warfare in the littorals.”

ICDR included customer approval of final design elements, such as general arrangements, drawings and initial manning concepts.

As approved, the LCS will provide the Navy with a new type of naval combatant designed to dominate the world’s coastal waters.

The Lockheed Martin LCS team will now complete the final design phase in preparation for the Final Critical Design Review , scheduled for December.

“We are working closely with the Navy to deliver real warfighting capability to the littoral battlespace, with a continued focus on a low-risk, low-cost solution,” said Carol Hulgus, vice president and general manager of Lockheed Martin Maritime Systems & Sensors’ Littoral Ships & Systems line of business. “Our team has the people and facilities in place to deliver the lead ship on schedule in 2006, and our design maturity is demonstrated by our on-schedule program execution.”

The Lockheed Martin team recently opened the Mission Systems Integration Center (MSIC) in Moorestown, N.J,. which provides a full-scale LCS Mission Control Center.

The MSIC will be used to integrate and test the LCS Mission System, including COMBATSS-21, as well as for initial crew familiarization and training, further reducing program risk prior to ship construction.

The team is also preparing for high sea state performance model tests of its semi-planing monohull at the Naval Surface Warfare Center-Carderock Division in Carderock, MD.

LCS, a revolutionary naval combatant designed to dominate the world’s coastal waters, provides the Navy with fast, maneuverable and shallow draft ships aimed at maximizing mission flexibility. The ship’s first missions will include mine warfare, anti-submarine warfare and surface warfare.

The Lockheed Martin team was awarded a contract for final design in May, with options for up to two Flight 0, or initial production, ships. Lockheed Martin is scheduled to begin construction of the lead ship at Marinette Marine in Marinette, WI, in the first quarter of 2005. The Lockheed Martin-led team includes naval architect Gibbs & Cox and shipbuilders Marinette Marine and Bollinger Shipyards. The team designed a low-risk, affordable solution that provides the Navy with a maneuverable, flexible, networked surface combatant.

Headquartered in Bethesda, Md., Lockheed Martin employs about 130,000 people worldwide and is principally engaged in the res

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