NEWS RELEASE

FOR IMMEDIATE RELEASE

175 Admiral Cochrane Drive                                                                          Contact: Jim Williford

Annapolis, Maryland 21401-7394                                                            Telephone: 410-266-1380

410/266-1380 Fax 410/266-3581

LEAR SIEGLER SERVICES, INC. WINS

$1.9 BILLION UNITED STATES AIR FORCE CONTRACT

Annapolis, Maryland, U.S.A., December 7, 2000 - The Aeronautical Systems Center at Wright-Patterson AFB, Ohio, announced the award of the Parts and Repair Ordering System (PROS) II contract to Lear Siegler Logistics International (LSLI), a wholly-owned subsidiary of Lear Siegler Services, Inc., headquartered in Annapolis, Maryland. PROS II is a $1.9 billion, five year, Foreign Military Sales (FMS) contract. The Air Force Security Assistance Center (AFSAC), also located at Wright-Patterson AFB, will be the contract’s operational and administrative authority. Other members of the winning PROS II team are (Northrop Grumman (formerly Litton TASC), Fairborn, Ohio; Global Aerospace Industries, Inc., Fort Worth, Texas; and, GlobeNet, Inc., Alexandria, Virginia. Northrop Grumman Ship Systems will be strategically aligned to support United States Navy FMS requirements.

“This is a great win,” commented LSI President and CEO, John Moellering, “and the entire PROS II team looks forward to a full partnership with AFSAC in providing responsive and cost-effective parts, maintenance, and task order services for our foreign military customers.”

Through this contract, LSLI will be responsible to the Air Force Security Assistance Center for cradle-to-grave logistics support to 83 Security Assistance countries that own and operate over 11,000 mature and proven aircraft of various configurations. Air Force, Army, and Navy FMS systems can be supported through the PROS II contract.

LSLI’s program management office will be located in the Litton TASC office building, Fairborn, Ohio. PROS II capabilities include item research, item manufacture/acquisition or repair, quality assurance, package handling, transportation, data interface, and customized processing. Task order support involves studies and analysis and technical services in the functional areas of Engineering, Program Management, Logistics and Production Management, Financial Management, Computer Technology, Purchasing, Legal, and Training.

Founded in 1961, LSI employs approximately 4,000 people at over 80 locations worldwide providing management services in aircraft and vehicle maintenance, logistics, transportation, engineering and communications to the U.S. Military and foreign governments. LSI is currently performing major contracts with the Army, Navy, Air Force, Coast Guard, and NASA. LSI is a leading international contractor with the Government of Saudi Arabia, performing a variety of services for the Royal Saudi Air Force. In addition, since 1961, the company has been one of four Department of Defense (DoD) Contract Field Teams (CFTs) where LSI provides services to DoD agencies on an as-needed, timely basis. In 1999, LSI generated over $350 million in revenues and is ranked among the top 100 Department of Defense contractors.

The Carlyle Group, a private merchant banking company based in Washington, D.C., is the lead equity investor in LSI. Mr. Frank C. Carlucci, former Secretary of Defense, is the Chairman of the Carlyle Group.

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