LOCKHEED MARTIN UK AWARDED 25-YEAR MERLIN SUPPORT CONTRACT

LONDON, UK, March 6, 2006

Lockheed Martin UK has been awarded a 25 year contract by AgustaWestland which will see it provide comprehensive support to the Royal Navy’s fleet of Merlin Mk 1 helicopters.

Under the Integrated Merlin Operational Support (IMOS) contract, Lockheed Martin will support the Merlin Mk.1 Weapon System which includes the Merlin Avionics Systems, the Merlin Avionic Test System and the Merlin Training System at RNAS Culdrose.

The support will help optimise the world-beating Royal Navy Merlin Mk.1 fleet’s operational serviceability and availability in support of front line operations. Lockheed Martin’s involvement will be exclusively on the Merlin Mk 1 fleet.

Adam Ingram, Minister for the Armed Forces, said: “Until now MoD has operated separate support systems for the two different types of Merlin aircraft. This was the best approach when introducing both helicopters into service, but not the optimum way to manage support in the long-term.

“This new contract will incentivise industry to increase the availability of Merlin helicopters to the Front Line Commands, while saving the MoD and UK taxpayers around £1bn in support costs over the next 25 years. These arrangements will also sustain up to 1,200 jobs, many of which are at AgustaWestland in Yeovil.

“This through-life approach to supporting operations is a good example of MoD’s recently announced Defence Industrial Strategy in action.”

By bringing together a team from industry, the Royal Navy, the Royal Air Force and the MoD at RNAS Culdrose – the main Merlin Mk1 operating base – IMOS will reduce response times and improve system availability by having experts on-site to deal with technical queries and issues. The team at RNAS Culdrose will be able to reach back to a centralised team of experts at AgustaWestland’s UK site in Yeovil to provide a comprehensive support solution.

Lockheed Martin’s support capabilities have been developed and proven over a number of years and have exceeded the performance requirements of previous Merlin Mk 1 support contracts. This has enabled Lockheed Martin to seamlessly transition into the new IMOS arrangements, including Industry management of the workshops on site at RNAS Culdrose.

Ron Christenson, Group managing director for Lockheed Martin UK – Integrated Systems said: “IMOS is a hugely important programme to the Merlin community. We are proud to be a part of the new support arrangement which we are confident will ensure Merlin’s continued premier position as a multi-mission naval helicopter.

“By examining the multiple processes involved, working closely within the Merlin community to increase efficiencies, introducing IT support and adopting a ‘lean’ approach to this contract, we have managed to pass on significant savings to the MoD.”

Ian Stopps, chief executive of Lockheed Martin UK added: “Lockheed Martin understands the importance of not only providing the right kit, but also ensuring it continues to perform to the right capabilities throughout its service life. This IMOS programme will mean we will provide the best level of support for the Merlin Mk 1 helicopters.”

The contract will be reviewed periodically to ensure the fleet continue to receive a level of support which is continuously improved.

Lockheed Martin UK were awarded a £750 million contract to develop and upgrade 30 of the current Merlin Mk1 fleet last month.

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. Lockheed Martin works with over 100 business partners and employs over 1500 people at 15 sites across the UK.

Headquartered in Bethesda, MD, Lockheed Martin employs about 135,000 people worldwide and is principally engaged in the research, design, development, manufacture and integration of advanced technology systems, products and services.

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Media contact: John Fyall 02392 443 342/0207 798 2865; email: john.fyall@lmco.com