FDGM, Inc. of Fincantieri Awarded Contract for Lockheed Martin Littoral Combat Ship

Fincantieri-Owned Isotta Fraschini to Provide Engines for Navy's Warship of the Future FDGM, Inc., a U.S.-based, wholly owned subsidiary of Fincantieri of Italy, was selected to supply Isotta Fraschini-powered Ship Service Diesel Generators (SSDG) to the Lockheed Martin Littoral Combat Ship (LCS) team. FDGM, Inc. is the supplier of Isotta Fraschini diesel engines in North America. Owned by Fincantieri, Isotta Fraschini specializes in the design and manufacture of specialized, high technology, high powered/lightweight diesel engines particularly for niche markets, including the U.S. Navy, Italian Navy, and international navies, as well as most of today's prominent cruise liners. LCS, a revolutionary naval combatant designed to dominate the world's coastal waters, will provide the U.S. Navy with fast, maneuverable and shallow draft ships aimed at maximizing mission flexibility. The ship's first missions will include mine warfare, anti-submarine warfare and surface warfare. The Lockheed Martin-led team includes naval architect Gibbs & Cox and ship builders Marinette Marine and Bollinger Shipyards. The team designed a low- risk, affordable solution that provides the Navy with a maneuverable, flexible, networked surface combatant. The Lockheed Martin team was awarded a contract for final design in May, and is scheduled to begin construction of the lead ship at Marinette Marine in Marinette, WI, in the first quarter of 2005. "It is an honor for FDGM to have been selected to supply a critical piece of equipment for the U.S. Navy's warship of the future, and to be part of the distinguished Lockheed Martin team. We appreciate the continued confidence of the team and the Navy in our outstanding products and exemplary service," said Upinder Kamal, FDGM Chief Operating Officer and Executive Vice President. "The strength of Fincantieri, FDGM, and Isotta Fraschini and our companies' enduring commitment to the United States Navy will lead us, with our team members, well into the 21st century and beyond," said Ing. Gian Piero Riganti, FDGM/Isotta Fraschini President. "Further, this relationship underscores the strong alliance between the United States and Italy," he continued. "Lockheed Martin is committed to forming a team with best-of-industry technologies, to deliver the highest value and quality to the U.S. Navy in our LCS design," said Carol Hulgus, vice president and general manager of Lockheed Martin Maritime Systems & Sensors' Littoral Ships & Systems line of business. Isotta-FDGM has full-service facilities and factory trained mechanics in Ingleside, TX, near the homeport of most of the Navy's mine warfare ships; and in Sasebo, Japan, and in Manama, Bahrain, for mine counter-measure ships in the Pacific and Arabian Gulf theaters, respectively. FDGM is a subsidiary of FINCANTIERI, one of the most diversified shipbuilding companies in the Mediterranean, and one of the largest in Europe. The company designs, builds, and markets merchant, cruise, and naval vessels, offshore vessels, and is also active in the large conversion and ship repair sectors. In addition to supplying the U.S. Navy, Isotta Fraschini engines are utilized by the Italian Navy and many other friendly countries, as well as for commercial use.