The following 2 articles were distributed in the 6 March Arms Trade Newswire

Sources told IMRA that besides the F-16 sale to the UAE, there is
talk of selling V-22 tilt-rotor aircraft, S-3 sub-hunting helicopters,
in-flight refueling planes and early warning aircraft.More Details On F-16 Sale To UAE

The following 2 articles were distributed in the 6 March Arms Trade Newswire

Sources told IMRA that besides the F-16 sale to the UAE, there is
talk of selling V-22 tilt-rotor aircraft, S-3 sub-hunting helicopters,
in-flight refueling planes and early warning aircraft.

UAE Order for 80 Lockheed Martin F-16 Aircraft Includes Northrop Grumman
Radar and Targeting System

Company Also Wins Competition for Electronic Warfare Suite

BALTIMORE - Northrop Grumman Corporation's Electronic Sensors and Systems
Sector (ESSS) will provide the advanced agile beam fire control radar and
the internal forward-looking infrared and targeting system (IFTS) on 80
Lockheed Martin F-16 aircraft for the United Arab Emirates (UAE). In
addition, Northrop Grumman's Integrated Electronic Warfare System (IEWS)
has been selected by the UAE as the EW suite for the F-16 Desert Falcon
fleet.

The potential value of Northrop Grumman's participation on the UAE F-16
Desert Falcon program is expected to exceed $1 billion, depending on
customer requirements and options. Once under way, the program should
engage approximately 200 employees at the company's Baltimore, Md.,
facilities and another 100 at its Rolling Meadows, Ill., complex. At its
peak, the company's Desert Falcon activities will involve an estimated 400
jobs in Maryland and an additional 200 positions in Illinois.

"Northrop Grumman is proud to be a key member of the Lockheed Martin team,
and we are honored to contribute to this critical program for the United
Arab Emirates," said James G. Roche, Corporate Vice President and President
of Northrop Grumman's Electronic Sensors and Systems Sector. "We are
particularly excited to be selected as the provider of the electronic
warfare suite for the Desert Falcon, building upon our role as fire control
radar and IFTS supplier on the F-16s for the UAE. This vital program
underscores our corporation's core strengths in the highly competitive
global marketplace for advanced electronic systems."

The agile beam radar is designed to continuously search for and track
multiple targets within the forward hemispheres of the aircraft. As a
result of increased operational flexibility, pilots will be able to
simultaneously perform air-to-air search-and-track, air-to-ground
targeting, and aircraft terrain following.

"This new agile beam approach represents a quantum leap forward in
advanced, multi-mode fire control radar systems," said Robert W. DuBeau,
vice president-ESSS's Avionics Systems business unit based in Baltimore,
Md. "These advancements will provide pilots with vastly improved
situational awareness and much greater operational flexibility through
robust electronic counter-countermeasures (ECCM)."

Additional advantages of the agile beam radar include much greater
detection range, the simultaneous ability to detect and track multiple
targets, high-resolution synthetic aperture radar images (SAR), and a
twofold increase in reliability compared to conventional, mechanically
scanned radars.

"The IFTS will allow pilots to detect infrared images, allowing long-range
acquisition and tracking of airborne targets -- day or night," added Mr.
DuBeau. "The system will be packaged in a sleek, low-drag installation to
provide superior performance over conventional targeting systems."

For the UAE F-16 aircraft, the internal FLIR and targeting system will be
optimized for performance in the humid conditions prevalent in the Gulf
region by using mid-wave FLIR technology. This will enable pilots to view
an image displayed on a "heads-up" display that turns night into day;
detect and track both airborne and ground targets at very long range; and
perform laser designation and ranging for precision guided weapon delivery.

Northrop Grumman's Integrated Electronic Warfare Suite (IEWS) is based on a
revolutionary concept that leverages the latest radio frequency (RF) and
digital technologies. The system provides a fully integrated solution to
the active and passive electronic warfare (EW) suite requirements of the
customer and has flexibility for future growth.

"We are highly confident that the new Block 60 IEWS will set a new standard
for EW suite performance," said William T. Ober, vice president-ESSS's
RF/Electronic Warfare Programs business unit based in Rolling Meadows, Ill.

The Northrop Grumman IEWS comprises two major subsystems: a passive
receiver and an active jammer. Both systems utilize common technology that
allows higher levels of subsystem interoperability. The IEWS features high
sensitivity, wide-band digital receivers, and digitally based
countermeasures.

Included in the EW contract is the Combined Intermediate Automatic Test
Equipment (CIATE) program. The CIATE is capable of automatically testing
all three Northrop Grumman sensor systems -- the agile beam radar, IFTS and
EW -- and will detect faults and allow subsystem repair down to the
component level.



Bloomberg 3/5/00

Lockheed, UAE Sign $6.4 Bln Contract for 80 F-16s

Tony Capaccio

Washington- Lockheed Martin Corp., the world's No. 1 defense contractor,
has signed a contract worth $6.4 billion to sell 80 advanced F-16 fighter
jets to the United Arab Emirates, the company announced today from Abu
Dhabi, the UAE capital.

The UAE contract concludes nearly two years of intense negotiations between
Lockheed, the U.S. Air Force and the UAE. It's a huge lift in an otherwise
bleak 12 months for Lockheed, whose stock has plunged 54 percent in that time.

Dain M. Hancock, president of Lockheed Martin Aeronautics Corp., said the
deal ``is very significant for the strategic relationship that exists
between the governments of the United States and the United Arab Emirates,
just as it is important for Lockheed Martin.''

The contract for the new Block 60 model F-16s must be approved by the U.S.
Congress during a 30-day review process. It's unlikely the contract will be
blocked. The U.S. Defense Department and Air Force have met no sustained
political opposition during at least six extensive briefings they've
conducted on Capitol Hill since 1998.

Hancock said Lockheed Martin expected to receive a downpayment of about 10
percent in June or July.

Delivery Dates

The aircraft will be delivered between 2004 and 2007, the company said in a
statement. Khaled al-Buainain, commander of the UAE air force, said the
F-16 was chosen over the F-15, the Euro 2000, the French Rafale and the
Russian Sukhoi.

The UAE contract will add to Lockheed's backlog of $49.9 billion and boost
this year's sales by $500 million to $600 million, said Byron Callan, a
defense analyst for Merrill Lynch & Co. who rates Lockheed a ``neutral.''

Lockheed's Aeronautics unit, which makes the F-16 and F-22 fighters and
C-130J transports, accounted for $5.4 billion of the Bethesda,
Maryland-based company's $25.3 billion in total sales last year.

The U.S. government is expected to announce by Tuesday that Greece will buy
50 F-16s from Lockheed, at a cost of about $2 billion, Hancock said.

The UAE contract includes an estimated $6.4 billion in sales for Lockheed
Martin, Northrop Grumman Corp., the maker of the radar, and the company
selected to build the engine --either General Electric Co. or United
Technologies Corp.'s Pratt & Whitney unit. Hancock said the winner of the
engine contract would be announced later this week.

New Radar System

Northrop won a competition to build an electronic warfare system that is
carried inside the aircraft instead of in a wing pod. Northrop also is
providing a new generation of ``agile beam'' radar for the UAE F-16 that's
more powerful and precise than those used by the U.S. Air Force. Company
officials said their involvement in the project could be worth more than $1
billion.

Signing the UAE contract caps a singularly successful 12- month period for
the F-16, Lockheed Martin's largest single weapons program. Sales of the
jet fighter in 1999 included 50 each to Israel and Greece, and 24 to Egypt.

Separately, Lexington, Massachusetts-based Raytheon Co. stands to get most
of another $1.3 billion in contracts for munitions sales to the UAE that
the U.S. government will sign directly with the UAE in April.

These include Amraam air-to-air missiles, Maverick air-to- ground missiles,
second-generation Harm radar-killing munitions, and GBU-series laser-guided
bomb kits, all approved by Congress last year. The UAE will be the first
nation in the region to receive the new model of Harms, according to
Pentagon documents.

Lockheed Martin shares fell 1/8 to 17 in trading of 1.7 million shares
Friday on the New Year York Stock Exchange.

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