LOCKHEED MARTIN UK TEAM SELECTED FOR WORLD CLASS WARSHIP ELECTRONIC CHART AND NAVIGATION PROGRAMME

8 January 2004

LONDON, United Kingdom, Jan 08, 2004 – The UK MOD has selected a team led by Lockheed Martin UK as prime contractor to the Royal Navy for the latest electronic chart and navigation equipment. Called WECDIS (Warship Electronic Chart Display and Information Systems), the programme is expected to sustain more than 75 high-tech jobs in the UK.

Initially worth in the order of £10 million (US$17m), (and in the order of £29 million ($49.3m) when including in-service support), the WECDIS system will be fitted initially into 48 Royal Navy ships and submarines – including the Royal Fleet Auxiliary.

Electronic charts are replacing traditional paper charts in many of the world’s navies for their ease of use. It is anticipated that WECDIS will also replace existing electro-mechanical chart tables in a significant number of Royal Navy and Royal Fleet Auxiliary ships and submarines.

Lockheed Martin’s successful team of Kelvin Hughes Ltd, Offshore Systems Ltd and Babcock Design and Technology Ltd will work closely with the Defence Procurement Agency and the Warship Support Agency to install the equipment in an aggressive timescale which will see the first ship equipped in mid 2004 and an initial 48 ship units fitted by the end of 2006.

The WECDIS system will provide improved situational awareness on the Bridges of ships and is also the first step towards a paperless Bridge. Additionally it will give Officers of the Watch and Command Teams enhanced tactical awareness as it provides facilities for special military features and overlays. The system will also provide automatic alarms and notification and detailed information of special areas of interest.

The Lockheed Martin led team is integrating the latest IMO[1] certified off-the-shelf products - developed and in-service with many merchant fleets and navies worldwide – in a low risk, fully supportable package over the expected 30 year life of the system.

“We are delighted the MOD has selected the Lockheed Martin UK team to provide the Royal Navy with the world’s most advanced warship electronic navigation capability,” said Bill Widner, Acting Group Managing Director, Lockheed Martin UK Ltd - Integrated Systems. “Our WECDIS team combines advanced UK and international technology with proven systems integration and programme management skills. Together we will provide the MOD with a solution that is effective, affordable, supportable and low-risk. This win gives us a strong position to exploit the expanding market sector for military navigation equipment on a global scale.”

Ron Nailer, Managing Director of Kelvin Hughes said: "Winning the RN WECDIS competition validates our view that the NTD (Navigation & Tactical Display) WECDIS is the world's most advanced naval electronic charting system. We will now take the NTD WECDIS to the global naval market, confident that it fully satisfies our customers' demanding requirements."

Mike Pettigrew, Managing Director of BD&T, said: “This success rewards the tremendous efforts put in by the Babcock Design & Technology and the WECDIS team in bidding for this contract. It also demonstrates Babcock’s continued position as the ‘first choice’ partner for the supply of Design and Installation work.”

John Jacobson, Chief Executive Officer of Offshore Systems said: "We are delighted to be part of Lockheed Martin's world-class team to address the Royal Navy's WECDIS needs. OSI's world-leading naval navigation software combined with our partners' leadership in systems integration and hardware will give the Royal Navy the most advanced capabilities in the world. The WECDIS Programme is a major milestone for OSI, for the team and for the Royal Navy."

The world market for military maritime navigational equipment is estimated to be in excess of $500 million over a 10-year period.

Teamed with Lockheed Martin are:

Kelvin Hughes – Hainault, Essex. Part of Smiths Marine Systems they are the UK’s largest provider of maritime navigation equipment and have a heritage spanning two centuries. They have a history of supplying the UK MOD with systems and their Type 1007 and Colour Tactical Displays are in service with more than 30 navies. This new contract will sustain 50 high-tech jobs.

Babcock Design and Technology Ltd – Weymouth and Rosyth. Award of the contract will maintain continuous work for the existing staff both in Weymouth and at Rosyth in the Installation Design and Shipfitting areas.

Offshore Systems Ltd - Located in Vancouver, Canada, the systems division of Offshore Systems International Ltd. (OSI) will be providing the electronic navigation software for the Royal Navy. OSI is a leader in delivering products and systems for situational awareness.

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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 approximately 1,000 people at over 10 UK facilities including London, Havant, Southampton, Yeovil, Swindon, Hertford, Bristol and Cornwall.

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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.

Notes to Editors:

1. In this fast-paced installation programme, the first training equipment is scheduled to be fitted at HMS COLLINGWOOD in Fareham, Hants in early 2004, the first ship installation is due in mid 2004.

2. In order to comply with the latest IMO regulations there will be two WECDIS consoles per ship with a remote station in the Charthouse (being the location the navigation team plan their routes).

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