OWEGO, NY, 15-JUL-03 -- Lockheed Martin [NYSE:LMT] received a contract to begin production of the MH-60R helicopter for the U.S. Navy. The low rate production (LRIP 2) contract includes the initial release of $17 million to purchase components with long lead times. Under the ongoing MH-60R development program, Lockheed Martin already has delivered four Engineering and Manufacturing Development Phase II and five LRIP I aircraft. The second lot of low rate production aircraft is for six MH-60R aircraft with ultimate production quantities expected to total 254 aircraft. Full funding for LRIP 2 is expected with 2004 U.S. Department of Defense appropriation later this year. Additional orders are expected in each succeeding year through 2013, with production ramping up to 31 aircraft per year.

Lockheed Martin Systems Integration in Owego, NY, is the prime systems integrator for the MH-60R helicopter and developed the common cockpit and architecture for the MH-60S and the MH-60R platforms. The commonality between platforms will increase pilot interoperability and provide significant cost savings for the Navy. The program simplifies the service's helicopter inventory and reduces training and logistics costs estimated at up to a 50 percent savings.

With more than 30 years of experience as the prime systems integrator for United States and foreign military maritime helicopter programs, Lockheed Martin has partnered with most major airframe manufacturers and delivered more than 300 maritime helicopters worldwide. Lockheed Martin currently provides systems integration work on the U.S. Navy SH-60B; U.S. Air Force HH-60D combat search and rescue helicopter; Army Special Operations MH-60K and MH-47E platform; Air Force Special Operations MH-53M; United Kingdom's Royal Navy Merlin; and the Spanish Navy SH-60B MKIII.

Lockheed Martin System Integration Owego is a leader in providing advanced technology products, services and systems integration solutions for defense, civil and commercial customers worldwide. Based in Owego, NY, the Lockheed Martin business segment operates key facilities in the United States, Canada and the United Kingdom.