OWEGO, N.Y., February 5, 2004 - Team US101 competing to provide the president of the United States with a new Marine One helicopter fleet has selected Palomar Products of Rancho Santa Margarita, CA to supply the secure communications capability for the US101 medium-lift executive aircraft.

A leader in secure communications products for the Department of Defense, Palomar will supply the US101 aircraft with a state-of-the-art secure intercommunications system that meets military crosstalk isolation standards for preventing other sources from eavesdropping on voice transmissions. The company currently provides secure voice communications for the existing Marine One helicopters.

"Palomar is in a class of its own, and is a welcome addition to our team," said Stephen D. Ramsey, Lockheed Martin's US101 vice president and general manager. "The exceptional performance record of Palomar's secure intercommunications systems across multiple Marine, Navy and Air Force platforms, coupled with the US101 platform's proven operational success provides the Marine One squadron optimal reliability and low risk in a helicopter system to serve the office of the president."

"Palomar is proud to be a part of the US101 team, and we look forward to continuing our service to the president," said Val Policky, Palomar Products' president. "Our experience as a U.S. military supplier together with our high quality workforce has long been a source of pride for Orange County. It's an honor to be part of the national team that will produce the next presidential executive transport helicopter."

Team US101 comprising Lockheed Martin, AgustaWestland and Bell Helicopter Textron was formed to develop an American variant of AgustaWestland's successful EH101 multimission helicopter for the U.S. marketplace. Opportunities include a new Marine One fleet to fly the president of the United States, and combat search and rescue aircraft for the U.S. Air Force. Team US101 collectively brings unmatched rotorcraft expertise and experience: Lockheed Martin (prime contractor and systems integration), AgustaWestland (aircraft design) and Bell Helicopter (airframe assembly).

Palomar Products, Inc. is a leading developer and manufacturer of secure audio and data distribution systems for military airborne, shipboard and ground-based applications. Located in Rancho Santa Margarita, California, Palomar has provided TEMPEST qualified systems to customers throughout the world for over 30 years.

Media Contact:
Mike Drake,
US101 Communications
607-751-3200 or cell 607-761-3711
E-mail mike.drake@lmco.com
or

Contact:
Palomar Products
Bob Lawson
Marketing Director
Voice (949) 766-5434
FAX (949) 766-5353
E-mail: rlawson@palpro.com