TAFT APPLAUDS LOCKHEED MARTIN’S AIRSHIP EFFORTS
State Assistance Helps Set Framework for Possible Prototype Production

FOR IMMEDIATE RELEASE
March 25, 2004

Columbus, OH -- Governor Bob Taft today applauded efforts by Lockheed Martin (NYSE: LMT) in designing a high altitude airship for the Missile Defense Agency (MDA). He also offered a state assistance package totaling $12.3 million for the development of a prototype, should Lockheed Martin’s design be accepted by the MDA.

“For a hundred years Ohio has been the leader in aviation, thanks to the efforts of companies like Lockheed Martin,” Taft said. “I commend Lockheed Martin and its employees for their efforts in developing this new and exciting technology that will ultimately assist in the defense of our nation.”

Lockheed Martin is currently working on Phase 2, the $40 million design and risk reduction phase of the High Altitude Airship Advanced Concept Demonstration Project, at its facility in Akron. The unmanned High Altitude Airship, which would be about 500 feet long and 150 feet in diameter, would fly at 65,000 feet, stay on station for at least 30 days, and carry 4,000 pounds of payload. Its ultimate mission would be to serve as a communications and/or surveillance platform within the nation’s ballistic missile defense system.

Phase 2 culminates in a critical design review by the MDA in June. If the design is accepted, Lockheed Martin will be awarded the $50 million contract for Phase 3, the prototype airship production phase. The prototype could fly as early as 2006. If awarded, the program is expected to create 93 jobs and a total project value of more than $130 million in fixed assets and technology development.

According to State Development Director Bruce Johnson, the state assistance includes a variety of incentives, some of which are pending approval by the Development Financing Advisory Council and the State Controlling Board:

• A Job Creation Tax Credit valued at $768,430;
• A $200,000 Machinery and Equipment Tax Credit;
• A $250,000 grant to the city of Akron toward construction of an airship mooring facility;
• A $100,000 Ohio Investment in Training Program grant; and
• $11 million in loans and bonds to the Summit County Port Authority for improvements to the airdock facility and for the purchase of machinery and equipment to support the project.

“Lockheed Martin’s efforts are a prime example of the high tech, high paying jobs we want to attract to Ohio,” said Johnson. “Their success is proof that Ohio has the research and educational environment in which high-tech businesses can be competitive.”

Contact:Maria Smith at 614-466-6619 or Bill Teets at 614-466-2382, ODOD; or Orest Holubec, Governor’s Office, at 614-644-0957