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UPGRADE STUDY ANNOUNCED FOR ROYAL NAVY’S MERLIN HELICOPTER FLEET

4 June 2003

HAVANT, United Kingdom – 4 June 2003 – Minister for Defence Procurement, Lord Bach, announced today that Lockheed Martin UK Ltd has been selected by the Ministry of Defence for a two-year programme to assess possible upgrades to the Royal Navy's Merlin HM Mk1 weapon system.

Westland Helicopters Ltd will be a strategic partner in a powerful teaming for the assessment phase of the Merlin Capability Sustainment Plus Programme (Merlin CSP), worth approximately £18 million, which will evaluate obsolescence issues and weapon system upgrades.

The precise scope of any future upgrades will be assessed during the study programme, however all aspects of the Merlin weapon system will be examined such as the helicopter, ground support and control systems as well as the support structure including the sophisticated Merlin University at RNAS Culdrose.

A major aim of the study will be to seek whole life cost reductions moving to commercial off the shelf (COTS) equipment and an open system computer architecture which in turn will allow for lower cost insertion of future technology and system upgrades.

A particular area for study will be in improving the human machine interface. As mission systems become more versatile so the need for intuitive interfaces increases. Considerable attention will be paid to reducing operator workload whilst making simultaneous control of multiple and diverse missions a true reality.

“The Merlin is a highly versatile multi-mission helicopter which has given the Royal Navy a major capability enhancement in many areas. Indeed, only now is the potential of the aircraft being realised,” said Ron Christenson, Group Managing Director of Lockheed Martin UK Ltd Integrated Systems. “By undertaking this study the MOD will avoid high-cost, piece-meal future development or sustainment activities and enhance Merlin’s considerable potential in the maritime battlespace of the future.

“Merlin’s upgraded missions systems will keep the aircraft at the forefront of technology and able to deal with emerging threats. Added to these important benefits the whole-life costs will be reduced and the overall reliability of the systems will be increased substantially. In addition the weight will be decreased thereby allowing an enhanced payload or time on station.”

Ron Christenson added: "Our strategic partnership with Westland Helicopters Ltd makes the team for leading Merlin CSP a strong one. We are building on a close relationship forged over more than a decade and our experience with the aircraft, its missions systems, training and support is second to none.”

Lockheed Martin UK, a unit of Lockheed Martin Corporation, is a leader in systems integration working on major programmes spanning the aerospace, defence, civil and commercial sectors with significant capabilities in the transport infrastructure market. In the UK, Lockheed Martin has annual sales in the range of £400-600 million working with more than 75 business partners. Lockheed Martin employs approximately 1,000 people at over 10 UK facilities including London, Havant, Southampton, Yeovil, Swindon, Hertford, Bristol and Cornwall.

Notes to Editors:

1. Merlin HM Mk1 entered service in 1999 and all 44 aircraft have been delivered to the Royal Navy. The aircraft is normally deployed on the Invincible Class aircraft carriers and Type 23 general purpose frigates.

2. Most recently three Merlins were deployed on RFA Fort Victoria in support of Operation Telic (Operations against Saddam Hussein’s regime in Iraq).

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