MADRID, Spain, Feb. 18 /PRNewswire-FirstCall/ -- Lockheed Martin (NYSE: LMT) today awarded a $87.4 million contract for two CN-235-300M Medium Range Maritime Patrol Aircraft to European Aeronautic Defence and Space Company (EADS), in support of the U.S. Coast Guard's Integrated Deepwater System program.

The CN-235 will support the U.S. Coast Guard's maritime patrol mission by replacing older and less capable aircraft. With a 2,000-nautical mile range and 10-hour flight endurance, the CN-235 is capable of surveillance, search, rescue and transport duties. The CN-235 was selected after a comprehensive review of the global aircraft market, based on specific U.S. Coast Guard operational effectiveness and total ownership cost requirements.

The CN-235 is manufactured by EADS CASA in Spain. This contract includes development, manufacture and testing of two CN-235 aircraft, with a $4.15 million option for spares and integrated lifetime support, and an option for six additional aircraft. Final mission integration will be completed in the U.S.

"We are delighted to have EADS CASA supporting the critical maritime patrol aircraft portion of the Deepwater program," said Fred Moosally, president of Lockheed Martin Maritime Systems & Sensors. "We evaluated multiple aircraft, and the CN-235 is the best match for the U.S. Coast Guard's requirements. We will continue to search for the best solutions to our customer's needs."

EADS CASA is a subcontractor to Lockheed Martin for the CN-235 portion of the Deepwater program. In June 2002, the U.S. Coast Guard awarded the Deepwater contract to Integrated Coast Guard Systems, a joint venture of Lockheed Martin and Northrop Grumman.

About Integrated Deepwater System

IDS is a critical multi-year, multi-billion-dollar program to modernize and replace the Coast Guard's aging ships and aircraft, and improve command and control and logistics systems. It is the largest recapitalization effort in the history of the Coast Guard. When complete, the interoperable IDS system will include three classes of new cutters and their associated small boats, a new fixed-wing manned aircraft fleet, a combination of new and upgraded helicopters, and both cutter-based and land-based unmanned air vehicles (UAVs). All of these highly capable assets are linked with Command, Control, Communications and Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) systems, and are supported by a new and far-reaching integrated logistics systems. IDS is essential to the support the Coast Guard's many missions, key among which is domestic Homeland Security.

In June 2002, the U.S. Coast Guard awarded the contract for IDS to Integrated Coast Guard Systems, a joint venture of Lockheed Martin and Northrop Grumman.

Headquartered in Bethesda, MD, Lockheed Martin employs about 130,000 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 web site:
                        http://www.lockheedmartin.com

SOURCE  Lockheed Martin
    -0-                             02/18/2004
    /CONTACT:  Julie Camardo, Lockheed Martin, +1-856-722-7738, email:
julie.r.camardo@lmco.com/
    /Company News On-Call:  http://www.prnewswire.com/gh/cnoc/comp/534163.html
    /Web site:  http://www.lockheedmartin.com /
    (LMT)

CO:  Lockheed Martin; European Aeronautic Defence and Space Company; U.S.
     Coast Guard; Northrop Grumman
ST:  Maryland, Spain
IN:  ARO MAR
SU:  CON







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0614 02/18/2004 09:01 EST http://www.prnewswire.com