Lockheed Martin Receives $341 Million Contract for PAC-3 Missile Production

Lockheed Martin has received a contract for
$341 million from the U. S. Army Aviation and Missile Command (AMCOM) for the
production of the Patriot Advanced Capability (PAC-3) Missile.

Under the contract, Lockheed Martin Missiles and Fire Control will produce
88 PAC-3 Missiles plus other associated hardware.

Production of all equipment will take place at the company’s manufacturing
facilities in Dallas and Lufkin, Texas, and the PAC-3 Missile All-Up Round
facility in Camden, Ark. The first production PAC-3 Missiles were delivered
to the Army in September 2001.

“The PAC-3 Missile is the world’s most effective hit-to-kill air defense
missile, and we’re pleased to provide the U.S. Army with this powerful
system,” said Ed Squires, senior vice president – Air Defense Programs for
Lockheed Martin Missiles and Fire Control. “The PAC-3 Missile works. It is a
quantum leap ahead of any other air defense missile when it comes to the
ability to protect the warfighter.”

Lockheed Martin Missiles and Fire Control is the prime contractor
responsible for the PAC-3 Missile Segment upgrade, which consists of the PAC-3
Missile, missile canisters, the Fire Solution Computer (FSC) and the Enhanced
Launcher Electronics System (ELES).

The PAC-3 Missile is a high velocity, hit-to-kill missile and is the next
generation Patriot missile being developed to provide increased capability
against advanced theater ballistic missile, cruise missile and hostile
aircraft. The PAC-3 Missile kills incoming targets by direct, body-to-body
impact. The PAC-3 Missiles, when deployed in a Patriot battery, will
significantly increase the Patriot system’s firepower, since 16 PAC-3 Missiles
load-out on a Patriot launcher, compared with four Patriot PAC-2 missiles.

The performance of the PAC-3 Missile during its testing phases over the
past several years is unequaled by any other air defense missile. All PAC-3
Missile testing to-date has been deemed by the Army and DOT&E community as
threat representative and operationally realistic. During the flight test
program the PAC-3 Missile demonstrated hit-to-kill lethality against tactical
ballistic missiles (TBMs) and advanced cruise missiles, as well as full-scale
aircraft.

PAC-3 is one of the world’s most sophisticated technologies. The PAC-3
Missile flights:

• September 29, 1997 – Successful Control Test Flight
• December 15, 1997 – Successful Control Test Flight
• March 15, 1999 – Successful intercept TBM
• September 16, 1999 – Successful intercept of TBM
• February 5, 2000 – Successful intercept of TBM
• July 22, 2000 – Successful intercept of low-flying cruise missile
• July 28, 2000 – Successful intercept of low-flying cruise missile
• October 14, 2000 – Successful intercept of TBM
• March 31, 2001 – First “Tactical Ripple Mode” test – successful intercept of TBM by first PAC-3 Missile; successful tactical self- destruct of second PAC-3 Missile
• July 9, 2001 – Successful intercept of an F-4 remotely piloted aircraft by PAC-3 Missile; second PAC-3 Missile fails to intercept TBM due to communications bus anomaly
• October 19, 2001 – Successful intercept of advanced cruise missile
• February 16, 2002 – PAC-3 Missile received an incorrect target location cue from the Patriot ground system: intercept was not possible, although the missile functioned as designed
• March 21, 2002 – Successful intercept of TBM by first PAC-3 Missile; backup missile did not launch due to failure of a generator powering the launcher
• April 25, 2002 – First of two schedule PAC-3 Missiles did not fire
• (anomaly identified and corrected) – Second PAC-3 Missile hit target but did not kill the warhead
• May 30, 2002 – Successful intercept of TBM; backup missile did not fire (anomaly identified and corrected)

In addition to these PAC-3 Missile flight tests, the PAC-3’s predecessor
missile, the Extended-Range Interceptor, demonstrated three hits in a row
during the demonstration/validation program in 1994. Two of those tests
involved TBM targets and one involved an air-breathing target (simulating a
cruise missile or aircraft). The predecessor to missile to ERINT also
achieved three consecutive body-to-body intercepts of targets in the late-
1980s.

Lockheed Martin Missiles and Fire Control develops, manufactures and
integrates world-class air defense, fire support, strike weapon, naval
munition, combat vision, anti-armor and advanced product solutions and systems
for U.S. and international armed forces. 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.

For additional information on Lockheed Martin Corporation ,
visit our website: www.lockheedmartin.com