EAGAN, MN, July 21st, 1998 -- The Lockheed Martin Corporation (NYSE: LMT) team has been awarded a seven-year contract by the U.S. Navy for the AN/UYQ-70 (Q-70) computer system program. This competitive contract award follows the initial Q-70 award made to Lockheed Martin in 1994, and has the potential to significantly exceed its $281 million estimated value. The award is a requirements contract which allows customers to order quantities to meet their requirements throughout the contract period. The Q-70 is a ruggedized, Commercial Off-The-Shelf (COTS)-based tactical display and computing system which supports the common operating environment being implemented today in surface, subsurface, land, and airborne platforms. The Q-70's COTS-based architecture and components provide the cornerstone for modernizing combat/mission critical systems for the U.S. Navy as well as other Department of Defense applications.

The Q-70 award reinforces Lockheed Martin Tactical Defense Systems, Eagan, Minnesota, role as the leading COTS computer systems integrator for the Department of Defense and other governmental agencies. The award also is an acknowledgment of the company's leadership in increasing system performance and flexibility while reducing cost through the implementation of commercial standards to benefit the Department of Defense. Lockheed Martin Tactical Defense Systems, Eagan, Minnesota, has played a pivotal role in providing computer systems to the U.S. Navy for more than 50 years.

Lockheed Martin's team includes DRS Technologies Electronics Systems Group, and Raytheon Systems Company, Naval and Maritime Systems. Major contract work will be performed at Lockheed Martin's operations in Eagan, Minnesota, DRS Technologies operations in Johnstown, Pennsylvania and Gaithersburg, Maryland, and Raytheon Systems Company in Fullerton, California.