DALLAS and TUCSON, Ariz., May 16 /PRNewswire-FirstCall/ -- Lockheed Martin (NYSE: LMT) and Raytheon Company (NYSE: RTN) have formed NetFires LLC, a limited liability company to pursue missile and launcher development and production for the Non Line of Sight - Launch System (NLOS-LS), also known as NetFires. Products under development include a Loitering Attack Missile (LAM), a Precision Attack Missile (PAM), and an autonomous Container Launch Unit.

Both companies are under contract by the Defense Advanced Research Projects Agency (DARPA) to demonstrate elements of the NLOS-LS weapon system. Elements include prototypes of a LAM, PAM and launcher. Although the two missiles have significantly different mission profiles, the objective is that they both operate as part of a system that includes a common launcher. Developing the systems together will enhance component as well as command and control commonality throughout the NLOS-LS. Additionally, the LLC will offer a single source for NLOS-LS development and production for the Army's new NLOS-LS Task Force. The two companies will jointly manage the LLC.

"Forming a cooperative venture to develop the NetFires LAM, PAM and launcher will allow Lockheed Martin and Raytheon to identify commonalities between the systems that will lower costs and enable us to deliver a mature solution to the war fighter sooner," said Jim Berry, president, Lockheed Martin Missiles and Fire Control. "We look forward to working with Raytheon in developing and producing a system to benefit our armed forces," he added.

"Teaming to develop this U.S. Army transformational system will allow us to deliver the absolute best solution to the war fighter in the shortest possible time and at the lowest possible cost," said Louise Francesconi, president, Raytheon Missile Systems. "We welcome the opportunity to work with Lockheed Martin in this important venture."

Raytheon and Lockheed Martin have a history of successfully working together on such programs as the U.S. Army's Javelin anti-armor weapon. The two companies announced in February a teaming agreement to pursue the U.S. Navy's Cooperative Engagement Capability (CEC) Block II program.

The NLOS-LS weapon system will provide non-line-of-sight fires for the Army's Future Combat Systems and has been a DARPA-managed technology development program since 1997 when the program was competed and known as the Advanced Fire Support System. Under the current program, which includes combined DARPA-Army Science and Technology funding, flight tests of LAM and PAM prototypes will continue through calendar year 2003. Existing Army risk reduction contracts at both Lockheed Martin and Raytheon will be rolled into the LLC. The NLOS-LS System Design and Demonstration is on schedule to begin in fiscal year 2004.

The LAM is an expendable loitering, hunter-killer, that is seven inches in diameter and weighs about 100 pounds. It is capable of searching a large area using a laser radar (LADAR) seeker with automatic target recognition. It will have a 45-minute cruise capability using a micro turbojet engine and a warhead payload.

The PAM is a low-cost direct attack missile that is also seven inches in diameter and weighs about 100 pounds and will provide a wide range of support from 0.5 to 50 kilometers. It will include a variable thrust solid rocket motor, dual-mode precision uncooled infrared/semi-active laser seeker and a large multi-mode warhead.

Raytheon Company, with 2002 sales of $16.8 billion, is an industry leader in defense, government and commercial electronics, space, information technology, technical services, and business and special mission aircraft. With headquarters in Lexington, Mass., Raytheon employs more than 76,000 people worldwide.

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.

For information on Lockheed Martin Missiles and Fire Control, visit: www.missilesandfirecontrol.com

For additional information on Lockheed Martin Corporation, visit our website: www.lockheedmartin.com

    For information on Raytheon Company, visit:
www.raytheon.com


SOURCE  Lockheed Martin; Raytheon Company
    -0-                             05/16/2003 P
    /CONTACT:  Craig Vanbebber of Lockheed Martin, +1-972-603-1615, or
craig.vanbebber@lmco.com ; or Jennifer Allen of Raytheon Company,
+1-520-794-4182, or Jennifer_L_Allen@raytheon.com /
    /Web site:  http://www.lockheedmartin.com http://www.missilesandfirecontrol.com http://www.raytheon.com /
    (LMT RTN)

CO:  Lockheed Martin; Raytheon Company; NetFires LLC
ST:  Texas, Maryland, Arizona, Massachusetts
IN:  ARO
SU:  JVN PDT



AH-CD 
-- DAF019A --
0152 05/16/2003 12:01 EDT http://www.prnewswire.com