TIRANA, ALBANIA, 06/29/2005 --

The Government of Albania today announced an agreement with Lockheed Martin Corporation [NYSE: LMT] to complete the modernization of its air traffic management infrastructure. Previously, Albania and Lockheed Martin cooperated to rapidly refurbish Albania’s decades-old infrastructure in time to service 2004 Olympics air traffic. The contract extension, signed today by the Directorate General of Civil Aviation and the National Air Traffic Agency, will complete the country’s National Airspace Modernization Project.

This next phase of the project will build on the last 3 years of successful modernization to further improve safety, security, capacity and service for over 100,000 over flights, arrivals and departures each year. The program covers a new air traffic control operations building, airport control tower, long-range radar, communications and navigation aids in addition to new air traffic automation computers and displays to integrate the total air picture for the air traffic controllers. The effort also includes additional training for controllers and engineers and other infrastructure modernization.

“This is another big step forward in the Lockheed Martin partnership with Albania to help modernize their aviation sector to achieve international standards and move forward on the path to European harmonization,” said Don Antonucci, President of Lockheed Martin Transportation and Security Solutions.

With Lockheed Martin’s installation of a new SkyLine air traffic automation system, Albania moved a giant step forward in its airspace modernization program, meeting the nation’s goal to implement a radar control capability in time to support increased traffic associated with the 2004 Summer Olympics in Greece.

Future work includes integration of the Skyline system with new communications, navigation and surveillance capabilities that will link the air traffic system to other airports in the region, construction of a new airport tower and air traffic control center, and the training of Albanian controllers and technicians.

The National Airspace Modernization Project is a unique Albania-Europe-USA business partnership to increase the capacity of Albanian airspace and allow commercial airlines to significantly reduce operating costs by flying more direct routes between northwestern Europe and the Middle East. Team Albania is comprised of the Albania Directorate General of Civil Aviation (DGCA), National Air Traffic Agency (NATA), Lockheed Martin, UK National Air Traffic Services (NATS), EUROCONTROL, Alban Tirana Shpk and Infratransproject Shpk.

Lockheed Martin’s SkyLine system is a single air traffic management system for area and terminal/tower air traffic applications. It provides proven radar data processing with multi-sensor tracking and state-of-the-art advanced flight data processing.