Lockheed Martin Canada, NHIndustries team for Maritime Helicopter project

18 June 2003

Lockheed Martin Canada and NHIndustries have announced the establishment of a formal teaming arrangement for the pursuit of the C$3. 1 billion Canadian Maritime Helicopter Project.

Lockheed Martin Canada is bidding as a prime contractor for the replacement of the ageing fleet of Sea Kings. Canada is expected to buy 28 multi-mission maritime helicopters that will be shipped based on board its fleet of HALIFAX Class frigates. The terms of the agreement announced today define specific areas of responsibility and work scope for both companies. Lockheed Martin Canada will also provide the integrated mission system in partnership with its Tier I partner Thales Canada

As a result of this agreement, NHIndustries has announced that it has withdrawn the NFH version of the NH90 from consideration and will focus its efforts exclusively on the Lockheed Martin Canada led effort.

'For the past several years we have worked with the department of National Defence to gain a thorough understanding of their unique operational requirements," said Dan Spoor, President and CEO of Lockheed Martin Canada. "After a thorough evaluation of the Statement of Requirements, we have identified the NH90 as the most appropriate helicopter upon which to install our state-of the-art mission system. There are many good reasons why the NH90 is the overwhelming choice of nine NATO nations and with the addition of a Lockheed Martin mission system, the Armed Forces will enjoy a level of capability and interoperability unmatched by any country."

"The NH9O is the most technologically advanced helicopter in the world and Lockheed Martin is the world leader in maritime mission system integration," said Gerard Maitrepierre, General Manager of NHIndustries. "It is our firm belief that the combination of the NHI and Lockheed Martin capabilities will deliver superior performance and reliability to the Canadian Forces at an affordable price."

The NH90 was originally designed to meet the common requirements of the Armed Forces of France, Italy, Germany, Portugal, and the Netherlands. Recognised for its capacity to excel in harsh climates, it also has been selected by the governments of Finland, Sweden and Norway to meet their unique cold weather requirements. In total, nine European nations have now ordered more than 400 NH90s.

NHIndustries, the prime contractor for design, development, industrialisation, production and logistic support for NH90 helicopters, was established in 1992 by the four companies sharing the design and development of the program: Agusta, Eurocopter, Eurocopter Deutschland and Fokker Aerostructures.

The successful contractor also will be responsible for any necessary ship modifications to the Halifax Class ships as well as a 20-year in-service support period. The competition will be awarded to the lowest cost compliant bid that can meet the demanding technical requirements and provide the specified level of Canadian industrial participation.

Competing helicopters include AgustaWestland's EH101 and Sikorsky's H-92. Parliamentary opposition groups allege that the contest rules have been rewritten to favour the NH90 bid in order to save the face of Canadian Prime Minister Chretien, who cancelled the previous Governments's choice of EH101 with significant financial penalties. only to see it emerge as the Canadian Defence Ministry's favoured option.

REF XQQAS XQQAR

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