Air Force and TRW Sign Contract Worth up to $1.3 Billion to Modernize Guidance Systems on Air Force Minuteman III Missiles.

Business Editors/Aeorspace and Defense Writers

WASHINGTON--(BUSINESS WIRE)--Jan. 12, 2000

Major Life Extension Initiative Underway

The U.S. Air Force awarded TRW Inc. (NYSE: TRW) a $143.7 million contract to begin full rate production for the Minuteman III guidance replacement program (GRP).

The GRP is designed to extend the service life of the Minuteman III guidance system beyond the year 2020. The total value of the GRP full-rate production contract is estimated at $1.3 billion over eight annual buys.

"This award to TRW is significant in that it represents consolidation of ICBM weapons systems work under TRW in its role of managing the ICBM force," said Dr. Robert Strickler, vice president and general manager, TRW Space & Missile Systems. "Our contract with the Air Force is a strong example of the Total Systems Performance Concept at work. With this latest assignment to TRW, we continue to provide overall management to the Air Force for this $6.3 billion dollar effort to modernize and sustain our nation's ICBM force."

In December 1997, TRW was selected by the Air Force to serve as prime integration contractor for the ICBM force. In this new capacity, TRW is responsible for ensuring the readiness of the land-based ICBMs in support of national defense strategies. The contract was part of the Air Force "Lightening Bolt" acquisition initiative and reflects a 41 percent savings to the Air Force.

"Assigning the GRP to TRW is another step toward integrating the management of the ICBM force for the Air Force under TRW," said Colonel Overall, program manager for the Air Force's ICBM Program. "This move is in concert with our strategy to free our Air Force team to concentrate on defining the requirement to implement national strategy to maintain deterrence."

The GRP modernizes the guidance system electronics, as well as provides new guidance system software. Replacement of selected test and support equipment at the guidance depot in Newark, Ohio, and other weapon system test facilities throughout the U.S. is also included.

The GRP was initiated in August 1993 with the award of an engineering and manufacturing development contract to Boeing Electronic Systems & Missile Defense (ES&MD) in Anaheim, Calif. In March 1998, the program entered low-rate initial production (LRIP) and in October 1999, management of this contract was assigned from the Air Force to the TRW ICBM Prime Integration contract. The GRP is one of several key initiatives that TRW and its teammate Boeing are executing for the Air Force under this contract. Honeywell Space Systems Division, Clearwater, Fla., is a major subcontractor to Boeing and will provide the systems computer.

"The Minuteman III contributes significantly to our national defense. Moving the guidance replacement program into the full rate production phase is a major milestone in maintaining this critical strategic deterrent," said Robert D. Paster, Boeing ES&MD vice president and general manager. "Boeing is proud to have been the supplier of all ICBM guidance systems since the Minuteman I inception in 1958."

Another key ICBM program modernization initiative is the Propulsion Replacement Program (PRP), led by TRW along with teammates Thiokol and CSD. The PRP replaces aging propulsion systems in the Minuteman III missiles with new motors to maintain alert readiness status until 2020. The first remanufactured Minuteman III was successfully launched on November 13 from Vandenberg Air Force Base, Calif., to Kwajalein Missile Range in the Pacific Ocean. A guidance system produced under the GRP LRIP contract successfully guided this flight.

Since 1954, TRW has served as systems engineering and technical advisor to the Air Force in managing the ICBM force. The ICBM Prime Integration contract reflects major changes in the management of the nation's highly successful ICBM program. Formerly, the ICBM System Program Office (SPO) at Hill Air Force Base, with TRW providing technical support, directed a number of associate contractors that provided various elements of the ICBM system. Under the new contract, TRW is the prime contractor, integrating the team of ICBM contractors. The Prime Team provides the required systems engineering and subsystems technical expertise to manage the total ICBM system.

TRW Inc. provides advanced technology products and services to the automotive, aerospace, and information technology markets worldwide. For more information, visit http://www.trw.com .