SOURCE: Photon Dynamics, Inc.

October 29, 2007 16:05 ET

Lockheed Martin Selects Photon Dynamics to Develop Color, Night-Vision Camera

Salvador Imaging to Develop Next-Generation Camera for U.S. Army Program

SAN JOSE, CA--(Marketwire - October 29, 2007) - Photon Dynamics, Inc. (NASDAQ: PHTN), a leading global supplier of integrated yield management solutions for the flat panel display market, today announced that Lockheed Martin (NYSE: LMT) has selected Photon Dynamics recently acquired subsidiary, Salvador Imaging, Inc., to design and manufacture the next generation, night-vision camera system for the U.S. Army's Future Combat Systems (FCS) program. Under the initial contract with Lockheed Martin Missile and Fire Control (Orlando), the Company will develop a night-vision camera capable of providing color, night-vision imagery for FCS unmanned ground vehicle systems. The initial development phase of the contract is valued at approximately $1.7 million with the potential for significant production volume over the next 10 years.

Lockheed Martin Missiles and Fire Control develops, manufactures and integrates world-class air defense, fire support, strike weapon, naval munitions, combat vision, anti-armor and advanced product solutions and systems for U.S. and international armed forces.

Future Combat Systems is the Army's premier modernization effort, consisting of a networked family of 14 manned and unmanned systems. The network uses a battle command architecture that integrates networked communications, network operations, sensors and surveillance capabilities. Through this network, soldiers and military leaders will be linked to leading-edge technologies giving them the ability to execute highly synchronized missions using robotic and other unmanned vehicles. Rather than risking the lives of soldiers, robots can be sent into buildings to identify booby traps and insurgents. Unmanned aerial vehicles can be flown over hills and walls, allowing soldiers to see what is on the other side, thereby reducing risk and human casualties on the modern battlefield.

"We are honored by Lockheed's selection of our Company for this technology development," noted David Gardner, President of Salvador Imaging. "We share a common goal with Lockheed of developing the very best technologies to protect the men and women of our armed services."

Photon's President and Chief Executive Officer Jeffrey Hawthorne said, "The acquisition of Salvador Imaging clearly has brought immediate benefits to Photon Dynamics. The combination of our imaging and manufacturing knowledge with Salvador's expertise in developing high-performance cameras was the driving force behind the acquisition. Lockheed's selection of Salvador Imaging for a night-vision camera provides further validation of our strategy to expand our expertise into areas beyond the flat-panel industry."

About Photon Dynamics, Inc.

Photon Dynamics, Inc. is a global supplier utilizing advanced machine vision technology for market leading flat panel display test and repair systems and for high performance digital imaging systems for defense, surveillance, industrial inspection and medical imaging applications. For more information about Photon Dynamics (NASDAQ: PHTN), visit its website at www.photondynamics.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995

Certain statements in this press release are forward-looking statements. These forward-looking statements are based on current expectations on the date of this press release and involve a number of uncertainties and risks including but not limited to; termination of initial contract, no future contracts will be awarded, the technology will not be developed and those risks and uncertainties described in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" under the caption "Factors Affecting Operating Results" in Photon Dynamics' Annual Report on Form 10-K for the year ended September 30, 2006 as filed with the Securities and Exchange Commission. As a result, actual results may differ substantially from expectations. Photon Dynamics undertakes no obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise.

Contact Information

  • Contacts:
    Corporation:
    Photon Dynamics
    Jeffrey Hawthorne
    (408) 360-3561
    Email Contact

    Investors and Media:
    Guerrant Associates
    Laura Guerrant
    (808) 882-1467
    Email Contact