Loral awarded $33 million contract for Army Tactical Missile System.

DALLAS--(BUSINESS WIRE)--January 18, 1996--Loral Vought Systems, a division of Loral Corporation (NYSE:LOR), has received a $33 million contract from the U.S. Army to produce 50 Army Tactical Missile System (ATACMS) missiles.

Under the contract from the U.S. Army Missile Command (MICOM), Loral will produce 50 Block I ATACMS missiles, representing the Army's final purchase of the Block I missile. Delivery of the missiles is scheduled to be completed by July 1997.

The ATACMS Block I missile, first purchased by the Army just prior to the Gulf War, carries 950 anti-personnel/anti-materiel (APAM) submunitions to ranges exceeding 165 kilometers (100 miles). Including this contract, the Army now has purchased 1,650 Block I missiles.

Beginning in 1996, the Army will begin purchasing the ATACMS Block IA, an extended-range missile that can deliver 275 APAM submunitions to ranges exceeding 300 kilometers (180 miles). The ATACMS Block IA missile is now in engineering and manufacturing development, as is the ATACMS Block II missile, which will carry 13 Brilliant Anti-Armor Technology (BAT) submunitions.

ATACMS was the first tactical surface-to-surface missile ever fired in combat by the U.S. Army, when it was deployed in Operation Desert Storm. Production of the ATACMS was accelerated so that the missile could be used against high priority targets. ATACMS is fired from the Multiple Launch Rocket System (MLRS) M270 launcher, which is also manufactured by Loral Vought Systems.

Loral Vought Systems manufactures missile, rocket and space systems.

Loral Corporation, headquartered in New York City, is a high- technology company that primarily concentrates in defense electronics, communications, space and systems integration.

CONTACT: Loral Corporation

Craig Vanbebber

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