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SPECTRAL SYSTEMS INCORPORATED CHOSEN TO PROVIDE SENSORS FOR LOCKHEED MARTINíS AERIAL COMMON SENSOR PROGRAM

(17 June 2005 – Dayton Ohio) – Lockheed Martin (NYSE: LMT) recently awarded Spectral Systems Incorporated (SSI) a letter subcontract to begin work on the development of a sensor subsystem for the Aerial Common Sensor (ACS). ACS is the Army’s next generation airborne intelligence, surveillance, and reconnaissance (ISR) system. ACS will replace the Army’s Guardrail Common Sensor and Airborne Reconnaissance Low systems. Tentative plans also call for ACS to be used as a replacement for the Navy’s EP-3 reconnaissance platform.

SSI is providing Lockheed Martin with a modular, reconfigurable, state of art system. Under the SD&D phase, SSI will develop and deliver five mission ready systems as well as a Systems Integration Lab (SIL) unit. The System Development and Demonstration (SD&D) phase runs through 2007 followed by low rate initial production.

Dave Sharpin, chief engineer of SSI said, “We look forward to working with Lockheed Martin on the ACS program and are proud to be a member of their team. The ACS development leverages our technology into a new application that will fully utilize its performance and reconfigurability. We will provide Lockheed Martin and the US Army customer with a high performance and cost effective solution. As always, we are committed to technology advancement and satisfying our customer’s requirements, but more importantly, to getting the best equipment into the hands of our service men and women.”

About SSI
Spectral Systems, Inc. (SSI) is a leading-edge aerospace engineering and product development company located in southwestern Ohio, the birthplace of manned flight. SSI was founded in 1995 and has grown very rapidly from an engineering service provider to a developer and integrator of advanced Intelligence, Surveillance and Reconnaissance (ISR) and Electronic Warfare (EW) systems, sensors and embedded processors. SSI is a wholly owned subsidiary of Sierra Nevada Corporation (SNC), headquartered in Sparks, Nevada.

About Lockheed Martin
Headquartered in Bethesda, Md., Lockheed Martin 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.

Sierra Nevada Corporation (SNC) headquartered in Sparks, Nevada, is a fast growing innovative and agile technology solutions corporation focusing on system integration electronics engineering; manufacturing; and aircraft modification. Our current focus is to specialize in the integration; design; development; installation; and servicing of complex airborne, ground, and ship-based systems for the U.S. Government, its prime contractors, and international customers.

SNC is a privately-held, woman owned business with a strong, stable and debt-free financial foundation that provides flexible low-risk and strong financial performance for our customers. We have invested heavily over the years in experienced people, modern facilities, and the state-of-the-art equipment needed to enhance our capabilities, development efforts to our customer’s technical advantage. SNC has over 1000 employees with 24 locations in 15 states across the United States.

SNC Enterprise Business Areas:
ISR - Intelligence, Surveillance and Reconnaissance
CNS/ATM - Communication, Navigation, Surveillance & Air Traffic Mgmt
C4N - Command, Control, Communications, Computers and Networks
EW/RI - Electronic Warfare / Range Instrumentation
SST - System Sensors and Technology
IMS - Integrated Mission Systems