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LOCKHEED MARTIN UK CONSORTIUM THROUGH TO THE FINAL STAGES OF BID FOR THE DEFENCE INFORMATION INFRASTRUCTURE CONTRACT

17 December 2003

London, United Kingdom, December 17, 2003 – The Ministry of Defence (MOD) has announced that it has selected the Lockheed Martin UK Consortium as one of three contenders to go through to the final stages of the procurement process to provide the MOD with its next generation IT infrastructure.

The Defence Information Infrastructure (DII) Contract, potentially valued at £4B over 10 years, will ultimately deliver a fully integrated and networked IT capability to the fingertips of the UK’s Armed Forces. It is a major integration project involving over 300,000 users, hundreds of applications and more than 150,000 access devices at over 2000 locations around the world and is the basis of the MOD’s vision for the effective sharing of information and collaborative working. The Lockheed Martin-led team, which also includes Hewlett Packard, Unisys, SAIC, Deloitte and QinetiQ, will now provide a Best and Final Offer (BAFO) with a decision regarding contract award expected during the second half of 2004.

Following the announcement Ian Stopps CBE, Chief Executive of Lockheed Martin UK said “This is tremendous news. I know I speak on behalf of my colleagues on the senior executive team, Brian Hadfield (MD Unisys UK) and Steve Gill (MD Hewlett-Packard UK) when I say that our companies are totally committed to working in partnership with the MOD to create a first class IT infrastructure for the future”.

Mike Hardgrave, Managing Director UK Programmes, Lockheed Martin UK Limited said, “The DII project is a major programme management and integration task, something we have proven we excel at, with projects such as the Defence Fixed Telecommunication Service (DFTS), the UK Cooperative Engagement Capability (CEC), Tomahawk Integration and of course the Royal Navy’s new Merlin helicopter. Along with our team partners, including Hewlett Packard and Unisys, we can draw on a great deal of experience and resource resident in the UK as well as “reach back” to technologies and expertise across our companies in the US. We believe this, coupled with our unrivalled knowledge of the network-enabled battlespace of the future, of which DII will be a key enabler, puts us in a very strong position.” We look forward to working with the MOD in this next phase of the procurement.

Lockheed Martin 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. 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 people at over 10 UK facilities including London, Reading, Havant, Southampton, Yeovil, Swindon, Hertford, Bristol and Cornwall. Headquartered in Bethesda, Maryland, Lockheed Martin employs about 130,000 people worldwide and is principally engaged in the research, design, development, manufacture and integration of advanced technology systems, products and services. The Corporation reported 2002 sales of $26.6 billion.

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