U.S. NAVY AWARDS LOCKHEED MARTIN $20.8 MILLION TO MODERNIZE AEGIS-EQUIPPED CRUISERS



MOORESTOWN, NJ, March 22, 2006 -- The U.S. Navy awarded Lockheed Martin (NYSE: LMT) a $20.8 million contract to deliver the first Aegis Combat System upgrade ship-set for a cruiser modernization program.  The upgrade will extend the life, enhance the capability and improve the operational cost efficiency of up to 22 existing Aegis-equipped cruisers.

The first cruiser modernization combat system upgrade ship-set will be installed aboard by USS Bunker Hill (CG 52).  In addition, the contract includes the delivery of equipment to support land-based testing and training at Wallops Island and Dahlgren, VA.  

“The cruiser modernization program is critical to the sustainment of U.S. Navy force structure and the accomplishment of current and future missions of the Department of Defense,” said Capt. David Gale from the Navy’s Program Executive Office for Ships.  “The USS Ticonderoga-class cruisers were built in the 1980s and early 1990s.  This program will recapitalize initial investment in these ships by modernizing the combat system through computing and display infrastructure upgrades, as well as the hull, mechanical and electrical systems.”

The combat system computing and display infrastructure modernization will incorporate commercial off-the-shelf equipment and open systems architecture.  In addition, the Aegis development supporting the cruiser modernization program is being directly leveraged and reused in combat system development associated with the Littoral Combat Ship, DD(X) and the Coast Guard’s Deepwater programs.  Through this cross-program collaboration, Lockheed Martin is supporting the U.S. Navy in realizing its vision to maximize the commonality and interoperability of combat systems across Navy and Coast Guard surface ships.  

The Aegis Weapon System is the world’s premier naval surface defense system and is the foundation for Aegis Ballistic Missile Defense, the primary component of the sea-based element of the U.S. Ballistic Missile Defense System. The Aegis Weapon System includes the SPY-1 radar, the Navy's most advanced computer-controlled radar system. When paired with the MK 41 Vertical Launching System, it is capable of delivering missiles for every mission and threat environment in naval warfare.  

The Aegis Weapon System is currently deployed on 77 ships around the globe, with more than 25 additional ships planned. Aegis is the maritime weapon system of choice for Australia, Japan, South Korea, Norway and Spain, as well as the United States.

Sounds like a very cost effective upgrade at $20 million for 22 ships.

That sure sounds very inexpensive....

Read it again. the $20M is for the first ship, not all 20.

Oh good, this may mean the upgrade the computers to at least Pentium II standards.

Quoted: Read it again. the $20M is for the first ship, not all 20.

Correct.

Still a bargain.

Quoted: Oh good, this may mean the upgrade the computers to at least Pentium II standards.

You joke, but the first cruisers are using very elementary computing systems. It doesn't take much computing power to do what Aegis does. The trick is in the systems engineering and the software.

The Cruiser Conversion is a very good thing. Even at 20 mil a ship, it's almost like getting a new ship. You certainly get a much more capable cruiser.