SYRACUSE, NY, July 15th, 1998 -- The U.S. Navy has awarded Lockheed Martin a $77 million contract to complete the design and exercise options for two AN/SQQ-89 (V)15 UnderSea Warfare (USW) systems. The work, much of which will be systems design and software engineering performed by Lockheed Martin Ocean, Radar & Sensor Systems in Syracuse, NY, will build on the design work of the company's current AN/SQQ-89 contract, which was awarded in 1996 to develop and produce the (V)14 version of the USW system. The AN/SQQ-89 system is installed on U.S. Navy destroyer and cruiser type ships and is designed to protect U.S. ships from undersea threats. "This most recent contract with the Navy demonstrates the Navy's confidence in the work being performed by the talented Lockheed Martin team in Syracuse," said Congressman James Walsh, 25th District, New York, who announced the contract award in Syracuse. As the original developer of the AN/SQQ-89 system, Lockheed Martin employs nearly 400 people on the program in Syracuse. Six ship systems for the Navy are currently under order. With today's announcement another two systems are ordered, with 10 more (V)15 systems anticipated. The new work will continue the program in Syracuse with work projected out to 2003.

"The Lockheed Martin SQQ-89 team continues to meet all of the Navy expectations in an outstanding manner on a challenging program," said Lockheed Martin Ocean, Radar & Sensor Systems President Mike Smith. "The new contract, while further substantiating the confidence of the Navy, builds upon the work we are already doing and will enable the Navy to realize significant life cycle cost savings as the (V)15 system replaces 1970s technology and implements new, commercial technology into this crucial system."

Lockheed Martin Ocean, Radar & Sensor Systems is an industry leader in the design, development and integration of complex, software-intensive, electronic systems. The business has a Software Engineering Institute Rating (SEI) of Level 4, achieved by less than 20 companies worldwide.

Lockheed Martin Ocean, Radar & Sensor Systems has been a leader in acoustic technology since 1955 with the development of the first variable depth sonar; the first hull-mounted active and passive sonar system safeguarding the U.S. Surface Navy; and the first long-range passive "tactical towed array sonar". The company also developed the U.S. Navy's first Surface Ship SQQ-89 ASW system.

The company is also the radar center for Lockheed Martin and traces its roots back to many "firsts" in radar technology development -- the producer of the world's first, solid state long range radar, first simultaneous 3-D radar, developer of the first airborne early warning radar and the first over-the- horizon radar.

Lockheed Martin Ocean, Radar & Sensor Systems is an operating unit of Lockheed Martin Electronics Sector, a leader in the design, development and manufacture of electronics systems for the global, aerospace, defense, civil and commercial marketplace.