Lockheed
Martin to Use Metrologic Technology on Automated Package Processing System for
U.S. Postal Service Project;
AOA Subsidiary Receives $6.8 Million Contract
Blackwood, New Jersey - November 1, 2002 -- Metrologic Instruments, Inc. (NASDAQ-NMS: MTLG), a leading manufacturer of sophisticated imaging systems using laser, holographic, camera and vision-based technologies, high-speed automated data capture solutions and bar code scanners, today announced that its wholly-owned subsidiary, Adaptive Optics Associates ("AOA"), has received initial funding of $1.73 million on a $6.8 million contract by Lockheed Martin to provide data collection subsystems for a U.S. Postal Service program.
AOA will produce approximately 125 data collection subsystems ("DCS") for 74 Automated Package Processing Systems (APPS) being built by Lockheed Martin for the U.S. Postal Service. The AOA contract includes milestones for revenue beginning in the fourth quarter of 2002.
The APPS program, which includes parcel singulation detection, typing, tracking and dimensioning, will integrate and modernize the Postal Service's small package processing capabilities. Nationwide deployment is slated to begin in 2004. The Lockheed Martin contract provides for the potential delivery of up to 124 APPS through 2006.
According to AOA President and General Manager Jeff Yorsz, "This represents a very significant order for AOA and is a program that demonstrates our expertise in providing sophisticated and cost-effective subsystems for the parcel handling community. Teaming with Lockheed Martin on the program proposal and prototype production work has been an excellent experience. We look forward to the opportunity to strengthen our relationship as the APPS rollout begins."
What The System Does
The APPS program will provide the U.S. Postal Service with a fully integrated
system capable of automatically sorting high volumes of first-class packaged
mail, Priority Mail envelopes and parcels, and bundled mail such as magazines
or catalogs with greater efficiency and higher accuracy. The Lockheed Martin
system is capable of processing 9,500 packages an hour with machine printed
or handwritten addresses. AOA's DCS provides vital information for the APPS.
It determines if the mail stream is spaced sufficiently to avoid mis-sorts by
the automated equipment, provides parcel dimensional data, and determines if
the parcel is a box, letter bundle or flats bundle. These functions assist in
determining an ultimate sorting route. The DCS also communicates with the main
system computer and controls the flow of parcels and information while mail
is on its subsystem.
AOA was part of an APPS
prototype that was competitively field-tested by Lockheed Martin in 2001 and
is in use today at the U.S. Postal Service mail annex serving the Minneapolis
Processing and Distribution Center. The prototype system automatically processed
packages at a rate nearly double the productivity of the operation it will replace.
About Metrologic
Metrologic designs, manufactures and markets bar code scanning and high-speed
automated data capture systems solutions using laser, holographic, camera and
vision-based technologies. Metrologic offers expertise in 1D and 2D bar code
reading, portable data collection, optical character recognition, image lift,
and parcel dimensioning and singulation detection for customers in retail, commercial,
manufacturing, transportation and logistics, and postal and parcel delivery
industries. In addition to its extensive line of bar code scanning and vision
system equipment, the company also provides laser beam delivery and control
systems to semi-conductor and fiber optic manufacturers, as well as a variety
of highly sophisticated optical systems. Metrologic products are sold in more
than 100 countries worldwide through Metrologic's sales, service and distribution
offices located in North and South America, Europe and Asia.
Forward-Looking Statement
Forward-looking statements contained in this release are highly dependent upon
a variety of important factors which would cause actual results to differ materially
from those reflected in such forward looking statements. Specifically, the factors
that could cause actual results to differ from expectations include: the timing,
extent and possibility of additional funding or contracts on the APPS program;
USPS Postal Board of Governor's approval of additional quantities of APPS systems;
foreign currency fluctuations with the US dollar; the timing, introduction and
market acceptance of Metrologic's new products and new industrial division;
pricing pressures; competitive factors; sales cycles of Metrologic's products;
Metrologic's ability to control manufacturing and operating costs which affect
future profitability; technological changes in the scanner industry, specifically
vision-based technologies; availability of patent protection for Metrologic's
camera, vision-based technologies, and other products; general economic conditions,
and the disposition of legal issues. When used in this release and documents
referenced, the words "believes", "expects", "may", "should", "seeks", or "anticipates",
and similar expressions as they relate to Metrologic or its management are intended
to identify such forward-looking statements. For additional factors, please
see Metrologic's reports filed with the Securities and Exchange Commission.
For More Information Contact Investor Relations:
Dale Fischer, Vice President
Investor Relations
856-228-8100
Email: Investor@metrologic.com
Adaptive Optics
Associates, Inc.
Jeffrey Yorsz, President
Phone: 617-806-1400