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Lockheed Martin, Microsoft Create Alliance

Lockheed Martin Corp. and Microsoft Corp. are forming a strategic alliance to collaboratively pursue new business opportunities in the federal information technology market. The partnership builds on existing relationships between Lockheed Martin and Microsoft on a number of federal projects.

The companies will establish cross-functional business development and technology teams to focus their core competencies on existing and emerging opportunities, identify process improvements and exchange best practices.

The Bethesda, Md.-based Lockheed Martin will concentrate initially on deployment of Microsoft technology in three areas:

*Windows Distributed interNet Architecture (Windows DNA) 2000, the next generation of the Microsoft platform for building distributed Web applications;

*Visual Development Environment, which supports increased developer productivity by bringing together all the tools necessary to build and manage a Web application within a single work space; and

*Information assurance, to ensure solutions are compliant with key federal cryptographic standards important to the protection of U.S. government communications.

"The alliance enables government agencies to draw on the combined expertise of the foremost federal systems integrator and the world leader in business software and Internet connectivity," said Robert B. Coutts, executive vice president of Lockheed Martin's Systems Integration business area. "This alliance positions our companies to deliver unparalleled, integrated services to customers, providing greater efficiency in operations and enhanced service to citizens."

The alliance agreement also provides for the two companies to jointly develop new business proposals, and to train and certify Lockheed Martin technical personnel as Microsoft Certified System Engineers and Microsoft Certified Solution Developers.

"This alliance is a win-win for both companies and the U.S. government customers we serve," said Pete Hayes, vice president of Microsoft Government. "As our customers increasingly seek commercial off-the-shelf technologies for their complex systems requirements, this alliance enables Microsoft and Lockheed Martin to offer technically proven, cost-effective solutions to U.S. military and civil government agencies."

Each of Lockheed Martin's four principal business areas (aeronautics, space, systems integration and technology services) will have access to Microsoft technologies and products under terms of the alliance agreement. Systems Integration, with a customer base spanning all of the U.S. military services and civil government agencies including the Departments of Commerce, Justice, Transportation and Treasury, will lead the relationship. Nearly $18 billion of Lockheed Martin's $25.3 billion in 2000 sales were to the U.S. government.

"Given the desire of federal agencies to rapidly move toward an e-commerce model, Lockheed Martin and Microsoft together can provide advanced solutions that enable multiple systems to operate seamlessly in a highly secure fashion," Coutts said.

Microsoft Government, based in Washington, D.C., provides software, services and Internet technologies for federal, state and local government customers worldwide.



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