Lockheed Martin & ARTC partner on $62.3 million high tech rail system

Sydney, Australia , May 5, 2005 — ARTC and Lockheed Martin have entered into an agreement to develop a blueprint for a new Advanced Train Management System (ATMS) which will provide new communications and control technology for ARTC’s national and Hunter Valley rail networks.

ARTC Chief Executive Officer David Marchant with Lockheed Martin today detailed the features and benefits of the next generation of train control technology, ATMS that is being developed by Lockheed Martin for introduction across the national and Hunter Valley ARTC rail networks.

Mr. Marchant welcomed the working relationship with Lockheed Martin saying ARTC had chosen ATMS as proposed by Lockheed Martin as the superior train control technology for Australian conditions. He said it should leapfrog train control technology for the Australian national rail freight industry to the highest international standard.

The new communications system will be based on Telstra’s Code Division Multiple Access (CDMA) technology and will provide a safe and cost effective single communications medium across the whole rail network replacing nine separate communications systems.

The funding for the development of a blue print for this high technology project is through the Australian government’s $12.5 billion land transport plan AusLink. The Australian government will provide ARTC with $42 million to build a fully interoperable communications system for the interstate rail network and $20.3 million to develop a blueprint for its new Advanced Train Management System (ATMS).

The ATMS will include new computerised in-cab signalling to replace the current trackside system, satellite based location technology with accuracy to within three metres and a computerised warning system to alert drivers of impending dangers.

The system will allow ARTC to operate more trains on the track with a higher level of safety. Additionally the system will boost the capacity of the rail network in the Hunter Valley. “We are proud to play a role in this innovative and progressive rail system in Australia” said Chuck Cantello, Lockheed Martin’s vice president for Rail systems. “This new state-of –the –art system will improve rail performance and productivity and put Australia in the forefront as a world leader in advanced railway systems. Lockheed Martin is a world leader in providing innovative solutions for integrating complex systems and has provided navigation systems in a number of environments where accuracy of system is critical to safety.

ARTC manages Australia’s national interstate rail network including the New South Wales interstate and Hunter Valley rail systems.

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. The corporation reported 2004 sales of $35.5 billion.

Media contacts:

ARTC: Prue Regan 02 8259 0716 pregan@artc.com.au

Lockheed Martin: Fred Henney 703-367-2274 fred.henney@lmco.com

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