Press Release

Lockheed Martin Completes Strategic Analysis of Commercial Space Systems

By SpaceRef Editor
January 17, 2003
Filed under , ,

Following an analysis of
strategic options in response to ongoing overcapacity issues in the commercial
satellite-manufacturing marketplace, Lockheed Martin today announced it will
advance and extend its aggressive realignment initiative, begun in July 2001,
to consolidate and streamline management, engineering and manufacturing
organizations within its Commercial Space Systems (LMCSS) business, which is
located in Newtown, PA.

“We have evaluated a wide variety of strategic options for our commercial
satellite manufacturing business and have determined our best course is to
build on our record of mission success and cost reduction initiatives, with a
goal of improving competitiveness and generating better value,” said Robert J.
Stevens, president and chief operating officer for Lockheed Martin. “Rather
than aligning LMCSS with another satellite manufacturer, or discontinuing
operations, we will continue to strengthen our competitive posture by
improving efficiencies and focus on winning new business in 2003.”

Al Smith, executive vice president of Lockheed Martin Space Systems
reaffirmed the company’s dedication to mission success: “Our commercial space
team continues to achieve an impressive record of 100 percent mission success
and we will remain relentlessly focused on ensuring product reliability to
enhance our ability to meet our customers needs and win new business in 2003.”

Last year, five satellites, designed and built by LMCSS for customers
worldwide were successfully launched, including EchoStar VII for EchoStar
Orbital Corporation; NSS-6 and NSS-7 satellites for New Skies Satellites; N-
STAR c for NTT DoCoMo, Japan’s largest wireless telecommunications provider;
and most recently, Nimiq 2 for Telesat Canada. The launch of Nimiq 2
represented the 21st straight successful launch of an A2100 spacecraft. The
first A2100 was launched in 1996 and are all currently operational. The
company now is gearing up for the launch of Rainbow, a high-power A2100
satellite for Cablevision Systems Corp. of Bethpage, N.Y. The satellite is
scheduled to launch in the first half of 2003 aboard an Atlas V rocket.

LMCSS markets, designs and builds geostationary and non-geostationary
telecommunications satellites for customers worldwide. The company’s A2100
geosynchronous spacecraft is designed to meet a wide variety of
telecommunications needs ranging from Ka band/broadband services, fixed
satellite services in a Ku-band payload configuration, to high-power direct
broadcast services using the Ku-band frequency spectrum. The A2100’s modular
design features a reduction in parts, simplifying construction, increasing on-
orbit reliability and reducing weight and cost.

Customers include: Asia Cellular Satellite International, China Orient
Telecomm Satellite Co. Ltd, EchoStar Communications Corporation, SES Americom,
Japan Satellite Systems Inc., Korea Telecom, PT Telkomunikasi (TELKOM), New
Skies Satellites N.V., NTT Mobile Communications Inc., Space Communications
Corporation, Telesat Canada and Cablevision Systems Corp.

LMCSS is an operating unit of Lockheed Martin Space Systems Company, one
of the core business areas of the Lockheed Martin Corporation. Lockheed
Martin has a 41-year heritage of building reliable spacecraft for commercial
and military customers, having launched more than 875 spacecraft and clocking
nearly 1,500 years of on-orbit performance experience.

Headquartered in Bethesda, Md., Lockheed Martin is a global enterprise
principally engaged in the research, design, development, manufacture and
integration of advanced-technology systems, products and services. The
Corporation’s core businesses are systems integration, space, aeronautics, and
technology services. Employing about 124,000 people worldwide, Lockheed
Martin had 2001 sales of $24 billion.

For additional information, visit the website: .

SpaceRef staff editor.