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January 9, 2004

Chilean frigate program opens offset opportunities

The Chilean Fragata program is an acquisition effort being initiated by the government of Chile to modernize the Chilean Navy by procuring three modern frigate-size surface combatants.

A team led by Lockheed Martin and IZAR is bidding to provide these ships in an offering that includes hull, sensor, combat system and logistical support solutions.

The Chilean government requires that all teams bidding on the program offer an offset (also known as industrial cooperation - IC) package along with a technical solution and commercial proposal.

The Lockheed Martin/IZAR team will cooperate with Chilean industry for services, products and technologies directly associated with the Fragata program in response to this requirement, but the team is also assembling a comprehensive commercial IC package, consisting of projects involving companies both in Chile and abroad, not directly related to the Fragata program.

Of particular interest are companies that are positioning to locate facilities in Chile and companies involved in the IT, electronics, biotech, metalworking, and food and wine distribution industries. Lockheed Martin is prepared to offer grants of capital, extensive marketing support in Chile, and financial analysis and support via Santander Investments to companies who present superior business cases for projects to cooperate with Chilean industry in the above-mentioned areas of interest and are selected by the team to be incorporated into the Fragata IC program.

Lockheed Martin has issued a Broad Industry Announcement (BIA) to invite industry to participate in the commercial IC activities associated with the Fragata program. The objective is to collect business cases from and establish contact with companies who want to start operating in Chile or who want to grow an already-existing presence there. Business cases which meet the needs of the team and which are compliant with the IC guidelines published by the Chilean government will be incorporated into the Fragata IC program.

Interested parties should submit a completed Project Application by Feb. 13, 2004. Following a two-week evaluation period, the Lockheed Martin/IZAR team will downselect the most competitive offerings and invite those companies to a Chilean Fragata Industry Day in Moorestown, NJ USA.

More details at http://www.chileanfragataprogrambia.com.

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