Lockheed Martin Corporation Selects SBS Technologies, Inc. As Preferred Vendor And Signs Corporate Purchasing Agreement

SBS Technologies Inc. (NASDAQ: SBSE) and Lockheed-Martin Corporation today announced the signing of a contract to enter into a multi-year corporate purchasing agreement, making SBS Technologies one of only 12 VME product vendors to be selected for Lockheed-Martin's Preferred Vendor Program. Vendors in the Program were selected based on a number of criteria including price, technical capabilities, and management strength. SBS Technologiesí product specifications will be posted on Lockheed-Martin's internal vendor Web Site for engineers and sourcing agents in all divisions to access at all Lockheed-Martin locations. Contractual terms and conditions, warranties, and volume pricing discounts were negotiated for a three-year term with options to extend for additional years. Lockheed-Martin will be able to award contracts for Commercial-Off-The-Shelf (COTS) products and integrated systems using SBS Technologiesí products in a wide variety of military and commercial programs much more easily and quickly with this agreement in place. "Lockheed-Martinís many divisions spent an estimated $50 Million on COTS VME products last year with approximately 30 different vendors," said Jon Rambeau, Lockheed-Martin Sub-Contracts Project Manager. "Reducing the number to 12 vendors will promote success in prototype, test, and production phases of our contracts." "This allows SBS Technologies to influence the design decision makers earlier in the program schedule," stated Bill Fleissner, Corporate Vice President of Sales for SBS Technologies. "SBS Technologies has provided Lockheed-Martin with excellent products and services, allowing us to be included in the Preferred Vendor Program. The breadth of the SBS Technologies product line should help us increase our level of business with Lockheed-Martin. Sourcing agents can now award purchase orders using standardized terms and conditions provided by this master agreement," added Fleissner. The Lockheed-Martin internal Web Site will be developed and maintained by vendors, allowing SBS Technologies to update its electronic pages frequently and make certain that the latest technology specifications are available for consideration on new designs or upgrades. Additional products can be added to the existing contract as they become available by research and development or by further acquisitions. SBS has committed to Lockheed-Martin to continue to provide the very best product and system solutions and support for their embedded applications. Lockheed-Martin engineers, in return, will help define future requirements for additional products and modifications to existing designs, per their program needs. The agreement also encompasses follow on orders, spares, post-warranty maintenance, and end-of-life procurements. This purchase agreement includes the following SBS Technologies products: Avionics Products: MIL-STD-1553 and ARINC429 hardware, PASS 1000 rotocol and DataXpress analysis software. Modular I/O: Industry Pack, PMC, and PCMIP input/output modules and carriers for commercial, industrial and conduction cooled applications. Embedded Computers and Embedded PPC Products: PowerPC and Pentium Single Board Computers, I/O, and systems for commercial, industrial, rugged, and conduction cooled applications. Industrial and Military Computers: Complete Integrated Systems based on the PC, cPCI, and VME bus architectures for commercial, rack-mount, rugged, and ATR applications. Connectivity Products: Bus-to-Bus Adapters, Expansion Chassis, and Broadcast Memory products for all backplanes. SBS Technologies has, in the past, provided to Lockheed-Martin a wide variety of its products utilized on the International Space Station, F-16, FSX, F-22, C-130, Atlas, Centaur, and Titan Launch Vehicles, and several satellite programs. SBS Technologies, Inc. (NASDAQ: SBSE) is a leading manufacturer of standard bus embedded computer components for VME, CompactPCI, embedded PC and custom standalone applications. SBS product lines include CPU (Pentium and PowerPC) boards, input/output (I/O) modules, avionics modules and analyzers, bus interconnection products, expansion units, real-time networks, telemetry boards, data acquisition software, DIN-rail embedded PCs, and industrial-grade computers. SBS Technologies' embedded computer components are used in a variety of applications, such as communications, medical imaging, industrial control and flight instrumentation, in the commercial and aerospace markets. For news releases, product and other information, visit the SBS Web site at http://www.sbs.com. Certain of the foregoing information are forward-looking statements regarding the future events or the future financial performance of SBS, which are subject to risks and uncertainties. SBS' actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors. These factors include inaccurate assumptions and a broad variety of other risks and uncertainties, including some that are known and some that are not. No forward-looking statement can be guaranteed and actual future results may vary materially. Although it is not possible to predict or identify all of those factors, they may include: general business and economic conditions; customer acceptance of and demand for SBS' new products; SBS' overall ability to design, test and introduce new products on a timely basis; the cyclical nature of the markets addressed by SBSí products; and the risk factors listed from time to time in documents filed by SBS with the Securities and Exchange Commission.

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