Orlando, FL, 07-JAN-04 -- Lockheed Martin [NYSE: LMT] has been selected to lead an $8.5 million security upgrade project that involves integrating a new inline baggage handling service with existing explosives detection systems (EDS) in Terminal C at the Dallas/Fort Worth (DFW) International Airport.

The Terminal C project is the first of four EDS inline integration upgrades planned at DFW to automate checked baggage screening, while improving passenger flow in the terminal's lobby and ticket counter areas. The airport has received a $104 million commitment by the Transportation Security Administration to support security upgrades earmarked for Terminals B, C, D and E.

This project leverages Lockheed Martin's integration, security and material handling expertise to significantly improve baggage handling, while also enhancing the safety of the traveling public, said Brian Tanton, vice president of Material Handling and Identification Solutions for Lockheed Martin Distribution Technologies. We anticipate that the system developed in collaboration with DFW will serve as a model for future enhancements at other airports across the nation.

DFW is the world's third busiest airport, offering nearly 2,000 flights daily, handling approximately 55,000 bags a day, and serving approximately 151,000 passengers daily. It was one of the first airports to study how best to screen all checked baggage moving through its facility following September 11.

Lockheed Martin and the airport share a common goal of increasing security and improving customer service, said Clay Paslay, executive vice president of Airport Development for the DFW International Airport Board. This project creates a continuous, inline process of inspection and baggage movement with minimal handling, thus increasing efficiencies and security.

Lockheed's automated baggage handling system will link to nine EDS machines used in Terminal C to inspect baggage for potential threats. The Lockheed Martin system will allow the airport to relocate these EDS machines away from areas frequented by passengers, which will create more room in the Terminal C lobby area for public convenience.

Lockheed Martin will be responsible for the detailed design, fabrication, installation and test of the entire system, which includes more than 3,000 linear feet of conveyors. The Lockheed Martin design is predicated on a conceptual design developed by Cage Inc. under a contract with PB Aviation, which is the design lead for this project. Project implementation will be met through a series of detail-oriented, planned phases in order to maintain minimal disruption to ongoing airport operations. The project is scheduled for completion by July 2004.

The baggage handling equipment for this project will be manufactured at the Lockheed Martin Mississippi Space & Technology Center in Hancock County, MS.