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Updated: July 8th, 2008 05:26 PM CDT

MRC Optics Receives Arrowhead Lot 4 Components Contract from Lockheed Martin

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via PRNewswire

NORTHVALE, N.J., Oct. 9 /PRNewswire-FirstCall/ -- Photonic Products Group,Inc. (OTC Bulletin Board: PHPG), announced today that its MRC Optics subsidiary was awarded a firm-fixed price contract for precision optical components from Lockheed Martin (NYSE: LMT) in Orlando , Fla. The components are high-precision aluminum, beryllium, and beryllium alloy optical mirrorsfor Lot 4 production requirements on the Arrowhead(R) electro-optical system.

This is the fourth consecutive award to MRC Optics for Arrowhead aluminummirrors since 2002, each for increased quantities. This year's award coversdouble-digit deliveries per month through December 2008 , and contains optionsfor additional quantities. The dollar value of the contract was notdisclosed.

Arrowhead is the Army's Modernized Target Acquisition DesignationSight/Pilot Night Vision Sensor (M-TADS/PNVS) system that AH-64 Apachehelicopter pilots use for safe flight in day, night, or bad weather missions.Arrowhead's advanced technology improves both system performance and systemreliability by more than 150 percent while maintenance actions decreaseapproximately 60 percent. According to Lockheed Martin, streamlining fieldmaintenance from three to two levels will save nearly $1 billion in operationand support costs over the 20-year life of the system. Its modulararchitecture accommodates a field-retrofit from original TADS/PNVS to the newArrowhead configuration on both Apache A and D models. The U.S. Army fieldedits first unit equipped with Arrowhead in June 2005 . It is anticipated thattotal production for US and UK assets will reach over 900 systems, andproduction Lots 5 and 6 will extend production through the decade and beyond.

Dan Lehrfeld , President and CEO of Photonic Products Group, commented,"Our MRC Optics team and I are pleased to increase our involvement as a memberof Lockheed Martin's Arrowhead team, keeping pace with increasingrequirements. The Apache platform has proven itself to be an indispensabletactical warfighting system, and we believe continued production of theLockheed Martin Arrowhead upgrade will therefore remain a high priority in theDOD."

Tom Crafts , MRC Optics Director of Sales, added, "Through production Lot3, we provided six different optical components for the Arrowhead system, andearned the highest marks for supplier performance, both in product quality anddelivery. We understand the critical importance of quality, support of systemproduction rate, reliability, and on-time delivery to our customers, and thisguides how we do business. We are especially proud to see our involvement onthe Arrowhead team expanded in Lot 4 to a total of nine critical components."

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