Digital Battlespace

Portland, OR – FLIR Systems, Inc. (NASDAQ: FLIR) announced today that it has been awarded delivery orders totaling $111.7 million from the U.S. Army Space and Missile Defense Command in Huntsville, Alabama for its Star SAFIRE(R) III stabilized multi sensor systems. This represents the first delivery orders under a previously announced new contract modification on an existing indefinite delivery, indefinite quantity contract. The units delivered under these orders will support ongoing U.S. Armed Forces force protection programs. Work on the delivery orders will begin immediately and be completed within the next twelve months in FLIR’s Portland, Oregon facility.

“These delivery orders, a continuation of FLIR’s relationship with the U.S. Armed Forces, demonstrate the value of our systems for force protection applications. We are pleased the U.S. Army and Marines have once again chosen FLIR products for this critically important mission,” said Earl R. Lewis, President and CEO of FLIR.

Source: FLIR Systems Inc

Sunnyvale, California - Lockheed Martin (NYSE: LMT) announced today that it has achieved a key milestone for the U.S. Missile Defense Agency’s Multiple Kill Vehicle-L (MKV-L) payload by successfully demonstrating engagement management algorithms in a software test bed environment in Huntsville, Ala.

During an engagement with the enemy, the MKV-L carrier vehicle with its cargo of kill vehicles is designed to maneuver into the threat complex to intercept the targets. With tracking data from the Ballistic Missile Defense System and its own seeker, the carrier vehicle dispenses and guides the kill vehicles to destroy targets in the complex. The engagement management algorithms will perform tracking and discrimination, guidance and control, and battle management functions.

“This demonstration verified the ability of sophisticated algorithms to effectively manage the engagement of multiple kill vehicles,” said Rick Reginato, Multiple Kill Vehicle program director, Lockheed Martin Space Systems Company. “The use of test beds enables a disciplined, progressive approach to validating the key software and hardware components for this critical capability for the nation.”

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Garland, Texas - Raytheon Company (NYSE: RTN) has been awarded a U.S. Air Force contract to continue evolving a system for the sharing of near real-time, actionable intelligence information among warfighters. Known as the Distributed Common Ground System (DCGS) Integration Backbone (DIB), the next-generation DIB — DIB 1.3 — will address standards compliance, baseline convergence, enterprise interoperability and unique U.S. Air Force, Army and Navy requirements.

The Web-based DIB is an open service-oriented architecture through which military analysts and the intelligence communities can collaborate globally, regardless of their military service affiliation, thereby enabling joint interoperability. Raytheon first developed the DIB under the DCGS 10.2 contract for the Air Force and has supported the integration of the software into existing and emerging systems for the Army and Navy.

“The DIB technology has been successful in providing information interoperability, and the next evolution of the DIB will ensure successful integration to fight the war on terror,” said Anthony DiFurio, director of Multi-Intelligence Systems for Raytheon’s Intelligence and Information Systems. “We are looking forward to providing the U.S. military a service enabling it to integrate its systems with faster efficiency and effectiveness.”

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St. Louis, MO- The Boeing Company [NYSE: BA], industry teammates and the U.S. Missile Defense Agency achieved another significant milestone for the Airborne Laser (ABL) missile defense program this month by completing the first laser activation testing on the ground at Edwards Air Force Base, Calif.

“ABL’s weapon system integration team has done a great job preparing the high-energy laser for activation testing, which will ensure each laser subsystem is brought on line sequentially and safely,” said Scott Fancher, vice president and general manager of Boeing Missile Defense Systems. “Laser installation and the start of laser activation move the program a giant step closer to ABL’s missile shoot-down demonstration planned for 2009.”

The final plumbing and wiring installations will be completed in the coming weeks. All major components of the weapon system, including the battle management system, laser components, and beam control/fire control system, were installed earlier.

Laser activation testing is a methodical process to ensure ABL’s high-energy chemical laser has been properly integrated aboard the aircraft and is ready to produce enough power to destroy a ballistic missile. The tests first flow water or other inert substances through the laser to verify its integrity. Next, the laser’s chemicals flow through the laser to confirm sequencing and control.

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St. Louis, MO- The Boeing Company [NYSE: BA] today announced that it submitted a bid to the U.S. Air Force earlier this month for the Self-Awareness Space Situational Awareness (SASSA) program.

The program, valued at approximately $30 million, will demonstrate a system that detects threats to U.S. space assets using instruments hosted on satellites. A contract award is expected later this year.

“Boeing’s solution provides a low-risk approach that offers full mission capability,” said Craig Cooning, vice president and general manager for Boeing Space and Intelligence Systems. “We are combining our space experience and understanding of the mission with our hardware and software expertise to support the Air Force in demonstrating the technologies necessary for an operational, common-threat warning system.”

As part of Boeing’s commitment to the program, the company completed a demonstration of its system’s compatibility with a host vehicle and with multiple threat-warning instruments. The success of the demonstration confirmed Boeing is providing a high level of technology readiness and — coupled with the company’s extensive experience as a provider of government satellites and hosted payloads — ensures Boeing’s solution will meet current and future requirements.

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Dallas, TX - Lockheed Martin [NYSE: LMT] launched the first Guided Multiple Launch Rocket System (GMLRS) rockets from a High Mobility Artillery Rocket System (HIMARS) wheeled vehicle launcher using the new Universal Fire Control System (UFCS) during a recent test at White Sands Missile Range, NM. Four GMLRS rockets flew a pre-planned trajectory and successfully engaged their targets.

The UFCS is an evolutionary block upgrade of the MLRS Fire Control System that provides Warfighters the capability to fire GMLRS munitions that incorporate anti-jamming technology. The upgrade enhances reliability, mitigates obsolescence and reduces the sustainment cost of current systems.

“The UFCS is now a demonstrated, cost-effective solution that will improve the reliability and extend the life of the MLRS family of rockets and launchers,” said Jim Gribschaw, director of Precision Fires at Lockheed Martin Missiles and Fire Control. “This new capability will enable more Warfighters to have the dependable, long-range precision of the GMLRS at their command.”

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Dallas, TX - The U.S. Army today activated the first battery of the Terminal High Altitude Area Defense (THAAD) Weapon System, developed by the U.S. Missile Defense Agency and produced by Lockheed Martin [NYSE: LMT], in a ceremony at Fort Bliss, TX.

Alpha Battery/4th Air Defense Artillery Regiment, 11th Air Defense Artillery Brigade, 32nd Army Air & Missile Defense Command will receive 24 THAAD interceptors, three THAAD launchers, a THAAD Fire Control and a THAAD radar as part of the initial fielding. In addition, the battery will have logistics support assets, such as the Battery Support Center and Integrated Contractor Support System, as well as the necessary spares for a fielded unit.

“This is a historic day for the U.S. Army’s Air Defense community,” said Tom McGrath, program manager and vice president for THAAD at Lockheed Martin. “The first battery receiving the THAAD Weapon System signifies that we are one step closer to the day THAAD will be protecting our Soldiers, friends and allies around the globe.”

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Baltimore, MD - The Japan Ground Self Defense Force recently exercised an option on an existing contract with Lockheed Martin [NYSE: LMT] and its trading partner Itochu, of Tokyo, for the delivery of two additional Biological Aerosol Warning Systems (BAWS).

The BAWS will be used by the Chemical, Biological, Radiological and Nuclear (CBRN) Defense Units of the Japan Ground Self Defense Forces to provide early warning of a biological attack.

The BAWS consists of an array of networked, remote sensors which can provide tactical, early-warning of the possible presence of a hazardous biological aerosol cloud. Each sensor has the capability to collect an air sample for subsequent agent identification and confirmation.

Software effectively fuses the individual sensor data to determine whether a biological cloud is present, increasing the probability of detection, while minimizing the probability of false alarms (a single sensor cannot cause a system-wide alarm). Each sensor contains an eight-channel particle counter for detection and an array of additional sensors, such as a solid-state air mass sensor for wind direction and speed, a GPS locator, a radio transmitter/receiver, a humidity sensor and a magnetic compass. Designed for operation at the battalion or company level, BAWS is simple to operate and maintain, and can be easily emplaced or relocated.

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Ultra announces that it has completed the acquisition, originally announced on 18 April, of Harris Acoustic Products (“Harris”) for a cash consideration of US$7m. The closing of the acquisition followed the successful completion of US regulatory review and approvals.

Harris specialises in the design, supply and support of submarine acoustic transducers and arrays. The transducers create the acoustic pulse, or ‘sonar ping’, in the water and receive the resulting echo return from potential targets. Multiple transducers are assembled by Harris into arrays to allow higher power acoustic transmissions and an improved directional capability of the sonar system. Harris will be integrated into Ultra’s existing Ocean Systems business in Braintree, MA, USA, which also specialises in underwater acoustic sensors and systems. Ocean Systems is part of the Group’s Tactical & Sonar Systems division.

The acquisition of Harris is being financed using Ultra’s existing facilities and is expected to be earnings neutral in 2008 after integration and finance costs.

Source: Ultra Electronics

Syracuse, NY - Lockheed Martin [NYSE: LMT] recently completed a successful Critical Design Review (CDR) for the Enhanced AN/TPQ-36 counter-fire target acquisition (EQ-36) radar. The completion of this final design step, on schedule, clears the way for the program to move into an initial production phase for five radar systems.

The U.S. Army’s new EQ-36 radar will provide the capability to detect, classify, track and determine the location of enemy indirect fire such as mortars, artillery and rockets in either 90-degree or 360-degree modes. EQ-36 systems will replace aging TPQ-36 and TPQ-37 medium-range radars, which only operate in limited 90-degree modes. The value of this acquisition could exceed $1.6 billion.

“It’s about the Soldier. We’re very much aware that the Army is in critical need of these systems in theater, right now,” said Carl Bannar, vice president and general manager of Lockheed Martin’s Radar Systems line of business. “The sooner we get these EQ-36 systems into the field, the sooner we can start saving lives.”

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