Lockheed Martin Receives Contract to Start Upgrade Program for Turkey's F-16s

Wednesday July 20, 12:33 pm ET

FORT WORTH, Texas, July 20 /PRNewswire-FirstCall/ -- Lockheed
Martin (NYSE: LMT - News) received a long-lead contract, valued
at approximately $67.7 million, from the U.S. Air Force to begin
development of a major systems upgrade of Turkish Air Force F-16
aircraft. The total contract is valued at approximately $800 million
and is expected to be issued in mid-2006.

The upgrade program will create a robust, common avionics configuration
for the Turkish Air Force's F-16 Block 40 and Block 50 aircraft,
plus a modest modification to their Block 30 aircraft.

"We have long-term relationships with the Government of Turkey,
the Turkish Air Force and Turkish industry, and we are pleased to be
expanding those relationships," said June Shrewsbury, vice president,
F-16 programs. "The Turkish Air Force is taking advantage of a
cost-effective upgrade program to their F-16s. This program is based
on a similar approach by the U.S. Air Force; therefore, much of the
design and development effort has already been accomplished, and our
task will be to address unique aspects of the Turkish configuration.
Other countries have expressed interest in a similar upgrade package
for their F-16s."

The Turkish configuration being integrated consists of the APG-68(V)9
multimode radar (currently being installed on new Advanced Block
50/52 F-16s), color cockpit displays and recorders, new core avionics
processors, the Joint Helmet-Mounted Cueing System, Link 16 data link,
advanced interrogator/transponder, integrated precision navigation,
an upgraded version of the Self-Protection Electronic Warfare System
(SPEWS II) and compatibility with a number of new weapons and
targeting systems.

Acquisition of the SPEWS II hardware and installation beyond the
lead-the-fleet kits [those for installation validation and flight
test] will be accomplished on a separate contract. Acquisition of the
APG-68(V)9 radar upgrade kits beyond those required for development
integration testing is not currently planned.

Lockheed Martin is the principal contractor for the program. Tasks
include the development effort, kit accumulation, technical assistance
for kit installation, upgrades to pilot training systems, and logistics
support and training. The baseline program includes kits for 37 Block
30s, 76 Block 50s and four Block 40s. There is an option for 100 more
Block 40 kits.

Kit installation will be performed by TUSAS Aerospace Industries
(by separate agreement) with technical assistance from Lockheed Martin.

Program milestones include modification kit trial verification
installation beginning in early 2007 and continuing about two years.
Flight testing will begin in early 2009 and will last approximately
two years. The Turkish Air Force is expecting to achieve initial
operational capability with the new configuration in 2011.

The program, titled Peace Onyx III, is being processed as a Foreign
Military Sale through the U.S. government and follows Peace Onyx I
(160 new F-16s in late 1980s to mid-1990s) and Peace Onyx II (80 new
F-16s in late 1990s).

BACKGROUND INFORMATION

The F-16 is the choice of 24 countries. More than 4,000 aircraft have
been delivered worldwide from assembly lines in five countries. The
F-16 program has been characterized by unprecedented international
cooperation among governments, air forces and aerospace industries.
Major upgrades to all F-16 versions are being incorporated to keep
the fleet modern and fully supportable over the aircraft's long
service life.

Lockheed Martin Aeronautics Co., a business area of Lockheed Martin, is
a leader in the design, research and development, systems integration,
production and support of advanced military aircraft and related
technologies. Its customers include the military services of the
United States and allied countries throughout the world. Products
include the F-16, F/A-22, F-35 JSF, F-117, C-5, C-130, C-130J, P-3,
S-3 and U-2. The company produces major components for the F-2 fighter,
and is a co-developer of the C-27J tactical transport and T-50 advanced
jet trainer.

Headquartered in Bethesda, Md., Lockheed Martin Corp. 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. The corporation reported 2004 sales
of $35.5 billion.

Turkey's Population Exceeds 72 Million

Turkey's population has increased by 6.3 percent (4,297 millions)
since the last census held in 2000 and has reached 72.65 million as
of the end of June 2005.

Turkey's population was 67,768 million in 2000. The State Institute
of Statistics (DIE) demographic figures note that the population of
Istanbul, the largest metropolis of Turkey, has increased by 1,313
million within the last five years. Recorded at 10.19 million in 2000,
it has climbed to 11,332 million in 2005. In other words, Istanbul's
population increase is equal to the populations of Gaziantep or
Kocaeli, two relatively large cities of Turkey. In the same period,
Ankara's population increased from 4.08 million to 4,319 million,
while Izmir's population rose from 3,371 million to 3,649 million.

The highest population increase in terms of percentage was recorded
in Turkey's tourism capital Antalya in the period of 2000-2005. The
city's population has exceeded two million with a 16.7 percent
increase. Sanliurfa follows with a 11.6 percent rise and Istanbul with
a 13.1 percent increase. The highest population decline was recorded in
Tunceli, with a fall of 15.4 percent. Tunceli's population fell from
93,584 in 2000 to 79,176 in 2005. Sinop, Kilis, Kastamonu, and Bartin
were other cities facing the highest population decline. Meanwhile,
24 provinces have seen a population increase above the Turkey average,
while 33 provinces remained below it. The population of the remaining
24 provinces has declined.

20.07.2005 Economy News Desk

From: Emil Lazarian | Ararat NewsPress