L-3 Joins Lockheed Martin Team Pursuing Halifax Frigate Modernization

Released on Tuesday, December 18, 2007

Ottawa, December 18th, 2007 -- Lockheed Martin [NYSE: LMT] today announced the addition of L-3 Electronics Systems Canada to its team pursuing the Canadian Navy's Combat Systems Integrator contract, an element of the HALIFAX Class Modernization (HCM) Program, which will upgrade the nation's 12 multi-mission frigates. The Lockheed Martin Canada led HCM Team also includes Saab Systems, IBM Canada, xwave and CAE Professional Services.

The Combat Systems Integrator contract calls for the installation and integration of upgraded command and control systems, radars, tactical data links, electronic support measures and other warfare capabilities for the Canadian Navy's Halifax frigates, the backbone of the Canadian Navy's surface fleet. The HCM program will ensure that the Navy continues to have the capabilities and technology edge required to defend the nation's maritime interests and support international peace-keeping efforts. The HCM program requires that the current command and control systems be maintained until all 12 ships have received the retrofit.

The addition of L-3 Electronics Systems to the Lockheed Martin Canada HCM Team brings to the team a recognized leader in logistics support with a proven track record spanning more than two decades. Under the current CP-140 Aurora Avionics Optimized Weapons Systems Management contract, L-3 Electronic Systems Canada has successfully integrated a large number of legacy In-Service Support (ISS) contracts into a single ISS provider model. Also, the company was successful in leading the most recent modernization of a major Canadian warship class, the TRIBAL Class Update and Modernization Project (TRUMP).

"The addition of L-3 Electronics Systems Canada strengthens our team. They bring proven integrated logistics support experience, reducing program risk," said Tom Digan, president of Lockheed Martin Canada. "They have a superb working relationship with the Canadian Forces, and a world-class reputation for excellence."

"Our decision to join Lockheed Martin Canada's HCM Team was an easy choice. This team clearly has the experience, technology and commitment to ensure the modernized HALIFAX class combat system is delivered on time and within budget," said Richard Ackerman, vice president of L-3 Electronic Systems Canada.

Lockheed Martin Canada is the prime contractor for Canada's HCM team, and has been a key supplier and partner to the Canadian Navy for more than 25 years, serving as the combat systems integrator for the frigate program since its inception, and as the in-service support provider for both the HALIFAX and IROQUOIS class ships.

The company also hosts the Canadian Navy's combat systems integration lab at its facility in Montreal and employs teams in Esquimalt, BC, and Halifax, NS, to maintain and upgrade the combat systems, maintenance procedure trainers, and team trainers located there. Lockheed Martin Canada is pursuing the HCM program in partnership with Lockheed Martin's Maritime Systems & Sensors (MS2) business. MS2 is heavily involved in the U.S. Navy's Aegis cruisers and destroyers, is producing the U.S. Navy's first Littoral Combat Ship (LCS), and integrates the Aegis weapon systems for six international navies.

Saab Systems brings world class command and control system experience, as well as extensive combat systems integrator and sensor expertise implemented in 15 navies worldwide -- including the Australian ANZAC and Swedish VISBY class ships -- to the team. IBM Canada, xwave, CAE Professional Services and L-3 Electronics Systems Canada provide "made in Canada" software applications and in-service support expertise that will address integrated logistics support, human factors engineering and other applications critical to the successful delivery of the CSI program.