S Air Force was certified for operations by U

Both the Japanese and German systems flew with Patriot Configuration-3upgrades.Early in the year, Lockheed Martin was awarded contracts totaling $556million from the U.S. Army Aviation and Missile Command for hardware andservices associated with the combat-proven PAC-3 Missile program. The PAC-3system has successfully intercepted 22 out of 25 targets since testing beganin the mid-1990s.In December, Lockheed Martin received additional contracts totaling $774million from the U.S Army for the PAC-3 Missile program. These contractsinclude fiscal year 2009 missile production for the U.S. Army as well as thefirst sale of the PAC-3 Missile Segment to the United Arab Emirates.SBIRS In December, the first Space Based Infrared System (SBIRS) HighlyElliptical Orbit (HEO-1) payload and ground system, built by a Lockheed Martinteam for the U.S Air Force, was certified for operations by U.S StrategicCommand. The formal certification completed the system development,operational activation and certification process, demonstrating the capabilityof the SBIRS HEO sensor and associated ground system to provide timely,accurate missile warning data to the Warfighter.

SBIRS is designed to provideearly warning of missile launches, and simultaneously support other missionsincluding missile defense, technical intelligence and battlespace awareness.Last year the SBIRS team achieved key integration and test milestones onthe first geosynchronous orbit (GEO) spacecraft, including a comprehensiveacoustic and pyroshock test regimen that validated the overall satellitedesign, quality of workmanship and survivability during space vehiclelaunching and on-orbit operations. Thermal vacuum testing of the completedGEO-1 space vehicle, which will validate its performance at temperatureextremes greater than those expected during on-orbit operations, is plannedfor 2009 in preparation for delivery to the U.S. Air Force in fiscal year2010.Targets and Countermeasures Under the MDA's Targets and Countermeasures Prime Contract, LockheedMartin successfully launched three target missiles in 2008 - one for the June5 test of the sea-based Aegis BMD system, one for the June 25 test of theTHAAD system, and one for the November 19 test of the Japanese Aegis system.Since its first prime contract mission in 2005, Lockheed Martin has achieved13 successes in 14 missions. Including targets provided prior to the primecontract, Lockheed Martin has achieved a 97 percent mission success rate, witha total of 30 successes out of 31 missions since 1996.In 2008, LockheedMartin also validated the new "ship and shoot" approach, under which eachtarget vehicle will be fully-integrated prior to shipment to the test range,and completed most of the flight hardware and integration for the firstmission of the next-generation Flexible Target Family.THAAD In May, the U.S Army activated its first THAAD battery at Fort Bliss,TX.

In preparation for full-system fielding in 2009, the Alpha Battery/4th AirDefense Artillery Regiment was unit-trained on THAAD equipment.In June, THAAD achieved its first successful intercept of a separatedtarget in the mid endo-atmosphere. The separated target represented a newtarget class over the unitary targets previously used, and the testsuccessfully demonstrated the system's ability to detect, track, discriminate,and intercept against separated targets. THAAD has achieved nine for ninesuccessful flight tests since 2005.Lockheed Martin plays a critical role in the nation's layered air andmissile defense system being used today. In addition to operational defenses,Lockheed Martin provides the backbone systems that integrate the sensors,command and control, and weapon system elements of the ballistic missiledefense system.