LOCKHEED MARTIN, GE AIRCRAFT ENGINES FORM ENGINE OVERHAUL JOINT VENTURE        

22 July 2002

FARNBOROUGH AIR SHOW, England – Lockheed Martin Aircraft & Logistics Centers and GE Aircraft Engines have agreed to develop a military aircraft engine center of excellence at the existing LMALC Kelly Aviation Center in San Antonio, Texas, under a newly-formed joint venture.

Lockheed Martin will have majority control of the joint venture, which will be called Kelly Aviation Center, L.P. Under the agreement, the new company will receive Lockheed Martin’s overhaul and maintenance workload for the TF39 engine and the T56 engine at the Kelly facility. The TF39 powers the U.S. Air Force C-5 Galaxy. The T56 is used on the P-3 Orion, C-130 Hercules, E-2C Hawkeye, C-2 Greyhound, and to provide auxiliary power for Navy frigates.  In January 2003, GE Aircraft Engines will add the assembly, inspection and test workload for 88 F110-GE-132 engines for the Lockheed Martin F-16 Block 60 aircraft being sold to the United Arab Emirates.

“We are excited to join forces with a major original equipment manufacturer in the aircraft engine market,” said David J. Posek, President of LMALC. “The strength of this partnership is the technical expertise that GE Aircraft Engines can provide, combined with Lockheed Martin’s modern, dedicated military aircraft engine facility."

JOINT VENTURE

“This is an opportunity to better serve the customers of both Lockheed Martin and General Electric,” said David L. Calhoun, President and CEO of General Electric Aircraft Engines. “A dedicated military aircraft engine center of excellence will be able to alleviate supportability issues and provide the highest quality of service and responsiveness.”GE Aircraft Engines, a division of General Electric Company (NYSE: GE), is the world’s leading manufacturer of jet engines for civil and military aircraft, including engines produced by CFM International, a 50/50 joint company of Snecma Moteurs of France and GE. GEAE also manufactures gas turbines, derived from its highly successful jet engine programs, for marine and industrial applications. In addition, GEAE provides comprehensive maintenance support, through its GE Engine Services operation, for GE and non-GE jet engines in service throughout the world. Visit GEAE online at http://www.geae.com. 

Lockheed Martin Aircraft & Logistics Centers, headquartered in Greenville, S.C., is the aerospace support arm of the Technology Services Business Area of the Lockheed Martin Corporation and is one of the leading providers of aircraft maintenance and integrated life cycle support services for the Department of Defense and commercial customers. Visit LMALC on line at http://lmalc.external.lmco.com.