BETHESDA, MD, December 7th, 1998 -- The Lockheed Martin Electronics Sector today announced the realignment of several of its businesses to provide a more cohesive approach to the U.S. and international military markets it serves. "By linking selected companies organizationally under a focused management team, we can better leverage key technical and business strengths, more easily share best practices and, most importantly, better serve our customers in each of the major markets in which we compete," said Robert B. Coutts, Electronics Sector president and chief operating officer. "This integrated approach will provide a better recognition of customers¿ needs and will enhance our ability to perform for them. The ultimate payoff for the Sector is greater competitiveness and growth."

No job reductions are anticipated as a result of the realignment, but the Sector¿s 15 operating units will continue their ongoing productivity enhancement initiatives. Over the last year, such initiatives have enabled the Sector to increase sales while reducing staff by about 5%, to 32,000 employees. "We remain focused on growth," Coutts said. "Our goal is to concurrently link growth of the business base with ongoing productivity initiatives so that additional business offsets job reductions that ordinarily would result from efficiency improvements."

Under the realignment plan, eight of the Sector¿s operating companies will comprise two new organizations, focused on Lockheed Martin¿s naval systems and electronic warfare customers.

The new Lockheed Martin Naval Electronics and Surveillance Systems organization comprises Government Electronic Systems in Moorestown, New Jersey; Ocean, Radar & Sensor Systems in Syracuse, New York; the Tactical Defense Systems businesses in Eagan, Minnesota, and Akron, Ohio; and the undersea systems operations of Federal Systems in Manassas, Virginia.

Joseph D. Antinucci, formerly president of Lockheed Martin Electronics & Missiles in Orlando, Florida, will serve as president of Naval Electronics and Surveillance Systems, which will be headquartered in Moorestown. Naval Electronics and Surveillance Systems has some 11,000 employees and annual sales of approximately $2.6 billion in areas including antisubmarine warfare and ocean surveillance systems; missile launching systems, ship systems integration; and radar and sensor systems.

Lockheed Martin Aerospace Electronics Systems includes Sanders in Nashua, New Hampshire; Fairchild Systems in Syosset and Yonkers, New York; IR Imaging Systems in Lexington, Massachusetts, and the space electronics business segment of Federal Systems in Manassas, Virginia. Sanders president Albert E.Smith also will serve as president of Aerospace Electronics Systems, which will be headquartered in Nashua. Aerospace Electronics Systems, with some 7,000 employees and annual sales of approximately $1.4 billion, includes integrated electronic warfare systems, countermeasures, imaging sensor systems and focal plane and detector arrays.

Not involved in the realignment are Control Systems, Johnson City, New York, and Fort Wayne, Indiana; Electronics & Missiles, Orlando, Florida; Vought Systems, Grand Prairie, Texas; and Electronics Systems UK, Federal Systems-Owego (New York), Lockheed Martin Canada, and Postal Systems, also based in Owego. The latter four companies comprise the Sector¿s existing Electronics Platform Integration organization.

"Our objective in realigning businesses is to sharpen our customer focus, not to create new bureaucracies that drive up costs and slow responsiveness," Coutts said. "Accordingly, Joe Antinucci and Al Smith will draw their management teams from existing talent in their organizations, and these individuals will serve in dual roles." The structure of the Naval Electronics and Surveillance Systems and the Aerospace Electronics Systems organizations will be announced within 60 days.