I have summarized the first half of the yearquickly for you. If you have any questions/concerns ask your manager for moreinformation.

.,

Lockheed Martin Librascopes These events are important to us, so everyone

needs to stay focused on achieving success inthese future events.

May 1999

As always, my door is open.

A Message from our Genera! ManagerThe first quarter of 1999 has been a busy one.Some of the highlights were:• Submitted JWARN proposal• Submitted MICAD Production proposal• JBPDS performance• Delivery of 11 JBPDS units• Delivery of 5 AAAV units• Delivery of 12 MICAD Fox units• Submitted MICAD Software ECP• Submitted 3 BAA proposals

3 major conventions/trade shows~ (Domestic & International)

• IRAD performance• BAWS performance• Discovery

AWARDS

After an extensive, and often tense, period ofnegotiation, Librascope has been awarded anew modification under the MICAD EMDcontract. This new mod includes a Statement

of Work for incorporating software modifica­tions to the basic MICAD contract. Value is$1.1 M and a start-of-work meeting isscheduled for 25 May. Work is to becompleted by January 2000.

We are starting to make our contract deliverieson time and within budgets which is key to ourcustomers perception of us. We need to keepthis track record going in the right direction!

Our financial outlook is good. We areprojecting year-end results that will meet allour financial commitments to the corporation.

Looking forward to the second quarter of theyear, we have more significant events in frontof us. Some of these events are:• MICAD Software ECP award• JWARN award• MICAD Production award

• Completion of JBPDS EDT'---...--. SBCCOM show

• JBPDS ECP award• ISO certification

NEW BUSINESS

After a hectic and harried start to the year, wesubmitted strong proposals for both JWARNand MICAD Production programs. TheGovernment is continuing its deliberateprocess of reviewing all proposals to selectwhat it deems is "best value." We remainconfident that we are highly competitive forboth programs and anticipate announcementof the awards by June.

In the interim, we are continuing to seek newbusiness opportunities wherever we can. InMarch we received a comprehensive report onthe potential Domestic Preparedness marketfrom our consultant. Based on that report wehave targeted some specific areas to pursueboth now and in the future. Cliff Megerle

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prepared a package for a cooperative effortwith Sandia and Sanders, another LockheedMartin company, to collaborate on rese@rchefforts to investigate development of a micro­CB sensor which can be mounted on an ultra­small Unmanned Aerial Vehicle (UAV). This isa potentially exciting area to pursue andmatches well with our strategic plan ofincreasing movement toward miniaturization.

Not to be outdone, John Gustafson,Jonathan Peeri, Scott Maurer, an.d EricScherff have also been working on an entireseries of White Papers to I provide to theTechnical Support Working Group for NBC.Should any or all of these be selected forfunding, we could soon find ourselves lookinginto such areas as building collectiveprotection, functional domestic CB operationsvehicles, and a software CB mapping tool. Wehope to hear some positive words back onthese efforts before the end of summer.

We are also making efforts to positionourselves for major programs in the future.Two large programs, which are scheduled tocome up for proposal next year, are JBPDSProduction and the Joint Biological RemoteEarly Warning Systems (JBREWS). Inaddition we are continuing to watch for anypotential opportunity for which we have theskills and knowledge to compete effectively.

TRADE SHOWS

As we move into the late spring and summermonths, Trade Show activity will begin to pickup the pace. Key to our successfulpresentation at these shows will be havingknowledgeable people available to describeLibrascope and our products. To meet thisneed Business Development and Engineeringare working together to ensure we have theright people in the right place at the right time.In early May, Bob Chapman and MarkDerksen will work the Force Protection

Equipment Demonstration in Quantico, VA to2

highlight MICAD and BAWS. Later in themonth, Bob and Mark will team with BobBarrett to present MICAD, BAWS, and JBPDSto the Armor Conference at Ft. Knox, KY. Atthe same time, Eric Scherff and Cliff Megerlewill present MICAD and BAWS at a showsponsored by the Federal EmergencyManagement Agency (FEMA) in Oak Ridge,TN.

Coming up in June will be the NBC Symposiumat SBCCOM in Maryland. This will be thelargest collection of NBC customers anywherethis year and we are planning a majordemonstration of our IR&D BattleSpace Lab aswell as showing off JBPDS, BAWS, andMICAD. It should be a terrific opportunity todisplay the quality products and forwardthinking that are part of our efforts here atLibrascope.

On a final note, our interest in the DomesticPreparedness market is starting to spread.We received a call from a company, whichmakes training films for fire departments andother first responders. They are making a filmon how to deal with the effects of a terrorist

biological attack. They had been told thatLockheed Martin Librascope had someequipment, BAWS, which might prove useful tofirst responders in determining the size of thearea contaminated by a biological cloud. BobDaymo took some equipment and headed toTempe, AZ for the filming. Maybe we will seeBob on the big screen?

GENERAL INFORMATION

BAWS Testing .... Librascope recently com­pleted successful testing of BiologicalAerosol Warning System (BAWS) at DugwayProving Grounds in Utah. Testing occurredduring the final two weeks of March 1999 andincluded live agent airborne releases at thetest site. BAWS consists of a base station and

multiple remote sensors. The base stationmonitors and controls biological and chemicalsensors at remote sites. Remote sites

communicate their measurements of airborne

particle counts, wind direction and speed, GPS'I)cation, and chemical agent(s) (optional with

,--,.1188 ACADA connected) via an UHF radio linkto the base station. Deployed sensor networkssupport both Line-of-Sight (LOS) communi­cations and relay to provide area warningprotection.

"'

Alice Chan, Mark Derksen and John Goodsupported testing. In addition to thesuccessful live agent testing, simulations wereconducted using the new HazardousEnvironment MICAD Interfaae (HEMI) withconnection to the Sattle Lab WarfighterExperiment (SLWE). The SLWE, operating inAlexandria VA, communicates in real-time tothe HEMI, to insert simulated biological attackdata into SAWS. The SAWS base stationcommunicates simulated adjustments ofaerosol particle counts to each remote sensor,which in turn adjust their calculations based onthe simulated data. This will eventually allowtroops to train anywhere in the world on how to

ombat a biological threat without doing live'-------'agentreleases.

SAWS operated flawlessly during a variety ofweather conditions, including high wind, rainand snow. The test site itself is a barren

desert area, replete with unexploded shells,cluster bombs and even debris from cruisemissile tests. Visitors are assured that local

rancher reports of flocks of sheep dying in thearea are grossly exaggerated. Valuable datawas also collected by the PC Analysis WorkStation (PAWS) to further refine triggering andalarm algorithms used to report biologicalthreats.

Congratulations! ...The Librascope Teamdelivered our product ahead of schedule andunder budget to our customer. Specifically,the latest MICAD Fox 12 increment wasdelivered one week ahead of the customer's

'------"~ontractualrequirement and well within theallocated program budget.

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The first program achieving success, was theFox 30 contract where we met the 30-dayschedule. On the AAAV program we met thecost target. Now, on the MICAD Fox 12 wehave met both the cost and schedulerequirements. There is a trend towardcontinuous improvement that we hope willyield positive results for us in the future.

We look forward to continuing this success­oriented tradition on the MICAD Production

and JWARN programs.

ISO 9001 .... The Librascope ISO 9001Implementation Team is currently working toimplemen.t corrective actions in response tothe March 1999 NQA Pre-Assessment

findings. Although the team members areleading the work on corrective actions,everyone here needs to participate in thecorrective and preventive action process. Weall need to do our part by using theprocesses/procedures that a'pply to the workwe perform here at Librascope. Librascopemade a commitment to our customers in theMICAD Production and JWARN proposals tobecome ISO registered and this is key towinning new business. ISO is also a tool toensure consistency in our processes, allowingus to meet our delivery and cost commitmentsto our peers, customers and the Corporation.We all have a lot of work during the twomonths leading up to the Full Assessment. Ifwe all work together in the spirit of the ISO9001 Standard, we can successfully obtainregistration.

Your ISO 9001 Management Representative isBob Jashinsky - contact him if you have anyISO 9001 concerns or questions. Others whocan address your concerns or answer yourquestions are Pat Burk, Pat Ha '0, LarryKnowles, Carole Kuruma, Nick Petrisca andTerri Miyamoto. Paul Shimp (Manassas SiteTotal Quality Management and Manassas ISO9001 & 14001 Management Representative)will be here in June to help Librascope get

ready for the NQA Full Assessment schedulefor July 13 and 14. Paul will also be hereduring the Full Assessment.

Bring your child to work day ....Twenty­one children between the ages of 6 and 18attended Bring Your Chi,ld to Work Day atLibrascope on 22 April. Employees wereinvited to bring their children to the workplacefrom 1:00 PM to 4:30 PM for "job shadowing"and a scheduled two-hour tour of the facility.Refreshment and momentos were given to allthose attending. Thanks to everyone whomade this day a success.

PEOPLE IN THE NEWS

MAY - JULYCOMPANY ANNIVERSARIES

May 1 - Steve Tay/or-10 YearsMay 29 - Lonnie Prater- 20 YearsJune 14 - Craig Gifford - 25 YearsJune 15 - Tom Smith - 40 YearsJune 25 - Paul Perillard - 15 Years

July 2 - Dave Resh - 20 YearsJuly 5 - Steve Lebit-10 YearsJuly 15 - Pat Ha'o - 40 Years.

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Congratulations! to Chris McMillan and hiswife Pearl ... on the birth of their daughterSamantha-Ann Shimada. Samantha-Annwas born on March 14 and weighed 6 Ibs. 12 'oz. Both mom and baby are doing fine.

Congratulations to John Good and ScottMaurer for receiving "Leadership ExcellenceAwards".

These awards are given to recognize the topindividual achievers who have a record of

sustained outstanding service to Customers orto functional areas within Lockheed Martin

Undersea Systems that results directly orindirectly in improved Customer satisfaction.Consideration is given to major contributions toa program or project with significantchallenging or unique milestones, impactingcustomer satisfaction or financial objectives,recognition by peers as deserving this award,and overall distinguished performance.

John Good is recognized by his peers andmanagement for his contributions to thedevelopment of a PC-based MICAD Display

Control capability which was subsequentlyintegrated with an Automatic Chemical Agentr"Jetector Alarm (ACADA) simulator on a. PC

~Iatform. This development work has providedthe foundation for our IRAD BattleSpace Labwhich is a critical element of our business and

technical strategies. John subsequently usedthis knowledge to lead his team in defining andimplementing the softwar~ architecture on theBiological Aerosol Warning System (BAWS)program. John is recognized for his leadershipand teamwork skills which have resulted inmeeting major milestones on schedule anddelighting the customer. I

Scott Maurer, as Chief Engineer on theAdvanced Amphibious Assault Vehicle(AAAV), has been an active participant of theGDAMS. Auxiliary Systems Integrated ProductTeam ( IPT) since the start of the AAAV designeffort. Scott's IPT won the 1998 Value

Engineering Award, which was a direct resultof an innovative design approach, allowing theNBC Filter System to be reduced from an)riginally specified dual filter system to a

'----./single filter system. The results of thissuccessful design trade study resulted in a30% weight reduction and a 25% costreduction. The delivery of the first NBC FilterSystem was made to GDAMS in January 1999.The del ivered product exceeded criticalperformance goals by more than 20% and wascompleted within budget. Scott has not onlyimproved business performance but hasdemonstrated exceptional innovation andteamwork, resulting in a delighted customer.

Again, congratulations John and Scott!

Congratulations to Kevin Kofler. Kevin wasselected as Reserve Sailor of the Quarter forOctober to December 1998. The following isan excerpt from a letter to Kevin from theDepartment of the Navy .... "One of the highesthonors you can receive from your commanding)fficer is to be selected as the command's

----./

Sailor of the Quarter. This noteworthyachievement is awarded to individuals who

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have served their command and the Navy inan exemplary manner. Your outstandingperformance is an inspiration to all and youhave every right to feel extremely proud ofyour significant accomplishments. RegionNineteen is fortunate to have you as part oftheir team. Well Done!" signed, J. D. Cannon,Deputy.

PEER AWARDS

The following Peer Recognition Awards havebeen given in 1999:

Roy Kramer from Helen EspositoSue Petrique from Helen EspositoRoy Kramer from Marti AndersonTerri Miyamoto from Carole KurumaDarlene Chin from Ron BrualdiEric Scherfffrom Sue PetriqueIvan Chan from Sue PetriqueCarole Kuruma from Terri MiyamotoLarry Knowles from Terri MiyamotoCarole Kuruma from Larry KnowlesNancy Barnett from Denise MartinezRichard Bell from Pat Ha'oDavid Resh from Pat Ha'oBob Goebel from Discovery Group 3Roy Kramer from Joanne MaccariBlair Belsheim from Marti AndersonDoug Dunnet from Helen EspositoShirley Brown(Manassas) from Blair BelsheimVirginia Hernandez from Ralph AndersonVic Nuguid from D. Goode & J. RobinsonRon Howe from Roberta WalkerRobert Barrett from Roberta WalkerBill Carlson from Roberta WalkerCliff Megerle from Helen EspositoGary Rever from Helen EspositoRobert Goebel from Helen EspositoScott Maurer from Helen EspositoKevin Kofler from Eric ScherffBob Goebel from Kevin KoflerNick Thomas from Kevin KoflerPaul Perillard from Kevin KoflerBill Chin from Kevin KoflerBob Sullivan (Owego) from Marti AndersonBill Carlson from Marti Anderson

ARTIST - KIP DODGE

Temecula's vineyard painter, Kip Dodge, Mgr,of Hardware Engineering, was rectSntlyhonored on being selected by State SenatorRay Haynes to participate in the Ser:1ate'ssecond annual California Contemporary Artcollection for 1998-99. Each Senator wasasked to select an artist from their district to

exhibit their artwork, as part of the collection inthe California State Capitol Rotunda Building,in Sacramento for a year.

The "official" art opening and artist receptionwas held January 13 in the Senate Members'Lounge of the State Capitol in Sacramento.

Kip is known as an award winning SouthernCalifornia regional landscape painter whospecializes in painting the Californiavineyards. The oil painting selected for thishonor is titled "Old Murrieta - Foothill

Vineyards", depicting early vineyards plantedbetween the City of Murrieta and the foothillrange to the west as representative ofsouthern Riverside County.

Kip has also sent artwork to a show sponsoredby the city of Voorberg, Holland. This showwill run through June 1999.

LML Hardware Engineering is developing anIndustrial Affiliates program with UCLA, UCSanta Barbara, Cal Tech and the Art DesignCenter of Pasadena. Call Kip, ext. 1043, forfurther information.

Any ideas or comments on the L~?, call MartiAnderson, ext. 1153.

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