BETHESDA, MD, September 30th, 1998 -- Lockheed Martin Postal Systems in Owego, New York, has been awarded a contract modification for $45 million to provide the U.S. Postal Service (USPS) 54 additional Small Parcel and Bundle Sorter (SPBS) systems. The SPBS automates the USPS's sortation process of small parcels and bundles for more efficient operations. The performance period of this new modification is from August 1998 to October 1999. The SPBS is an electromechanical smart sortation system that offers a cost-effective and efficient method of sorting parcels, bundled letters, magazines and other materials wrapped in plastic wrap, kraft paper wrapping, Tyvek(R) plastic or rubber bands. The design features unique motor-driven carrier-cell technology, which ensures precise and accurate sorting at high volume speeds of up to 11,000 small parcels or bundles per hour. The computer-controlled system sorting process results in very rapid placement of mail packages into 100 assigned output chutes with a sortation accuracy greater than 99 percent.

Including this new follow-on contract, Lockheed Martin will have delivered a total of 341 SPBS systems to more than 200 USPS locations. The new contract will be managed by Lockheed Martin Postal Systems in Owego, New York, with portions of the work being performed in Owego and Clearwater, Florida.

The USPS, the most highly automated postal system in the world with more than 12,000 pieces of mail processing equipment and nearly 40,000 post offices, has been able to use technical initiatives such as the SPBS system to constantly improve service while maintaining the lowest postage rates in the industrialized world.

Lockheed Martin Postal Systems is a leader in the design, production and systems integration of a broad product portfolio of recognition, sortation, material handling and information management systems equipment and technology for postal and commercial customers. It is a part of the Lockheed Martin Electronics Platform Integration Group, which includes operating units in Eagan, Minnesota; Akron, Ohio; and Montreal, Canada.

The Electronics Platform Integration Group is a unit of Lockheed Martin Electronics Sector, one of five business sectors of Lockheed Martin Corporation, and a global leader in the design, development and production of advanced electronic systems for the defense, aerospace, civil and commercial marketplace.