McLEAN, Va., June 17, 2002 – International Launch Services (ILS) is being recognized for its leadership in the launch vehicle market with an award from Frost & Sullivan.

In bestowing the Market Engineering Award for Strategic Alliance Leadership, Frost & Sullivan said ILS "stands out as a remarkably successful strategic alliance and has created a satellite launch service company that rivals all market participants."

ILS markets and manages the missions for the American Atlas and Russian Proton rockets. ILS, based in McLean, Va., was formed in 1995 as a joint venture of Lockheed Martin Corp. (NYSE:LMT) in the United States and two Russian companies, Khrunichev State Research and Production Space Center and RSC Energia, both of Moscow. ILS offers the broadest range of launch services in the world along with products with the highest reliability in the industry.

Over the last 2� years, ILS captured the lion's share of commercial launch contracts in a highly competitive global market. ILS announced contracts for several missions this month, and has a total backlog of 33 launches.

Frost & Sullivan said ILS "has excelled based in the following criteria: market share advantage; expanded service offering; increased marketing reach; and strategic positioning vis-�-vis competitors."

With two independent, highly reliable vehicles and two dedicated launch sites, ILS created the concept of Mutual Backup. This assures customers that their satellites will be launched on schedule.

"This is an exciting and unexpected honor," said ILS President Mark Albrecht. "It's very gratifying to be recognized by an organization with the reputation of Frost & Sullivan, which is not directly involved in the launch business and therefore is an impartial observer."

ILS brings together the best of two worlds, Albrecht said. Lockheed Martin and Khrunichev together have a combined heritage of more than 70 years' experience and more than 860 flights. The Atlas and Proton rockets are the most reliable in the industry. "Not only do we have an impressive history, we also have the cream of the crop of technical and business employees on both sides of the world," Albrecht said.

Frost & Sullivan, an international strategic market consulting and training firm, presents Market Engineering Awards to companies that demonstrate the diligence, perseverance and dedication required to develop a successful business plan and excel in the increasingly competitive global marketplace. Frost & Sullivan rigorously analyzes specific criteria to determine Market Engineering Award recipients in a variety of regional and global market landscapes. Founded in 1961, Frost & Sullivan is recognized as a global marketing research and solution leader, with offices located worldwide: Silicon Valley, New York, San Antonio, London, Paris, Frankfurt, Beijing, Tokyo, Singapore and Mumbai.

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