SKY COMPUTERS CHOSEN BY LOCKHEED MARTIN
FOR U.S. NAVY’S TEP PROGRAM

Delivery of Industry’s First High-Performance Embedded Server Demonstrates Need in Military Markets for COTS Built on Standards-Based, Open-Source Architecture

Chelmsford, MA, August 16, 2004—SKY Computers,® Inc., a subsidiary of Analogic Corporation (NASDAQ: ALOG), today announced that Lockheed Martin Maritime Systems & Sensors (MS2) of Moorestown, N.J., is installing SKY’s high-performance embedded server in the U.S. Navy’s Tactical Environment Processor (TEP) program. SKY’s high-performance embedded servers are the first open systems to be optimized for demanding applications like weather analysis, targeting radars and yield management.

SKY Computers delivered two SMARTpac™ 600 data acquisition servers, satisfying requirements for open-source and standards-based architecture in this demanding application. The inclusion of a Linux-based operating system, InfiniBand™ interconnect, as well as MPI and VSIPL development tools enables SKY’s SMARTpac Systems family of products to increasingly serve the needs of military and defense customers.

Lockheed Martin selected SKY’s SMARTpac 600 for the U.S. Navy’s Tactical Environment Processor (TEP) program because SKY’s product complies with open standards. This weather processing system is based on the ground-based, SKY-supported system installed at the National Weather Radar Testbed in Norman, Oklahoma (see press release “Lockheed Martin (NE&SS)-Surface Systems Selects SKY For Weather Radar Testbed” at http://www.skycomputers.com/news/news_releases.cfm?item=14). Lockheed Martin, in partnership with the U.S. Navy's Operation Effects Program Office, based in San Diego, has developed the advanced weather radar processor that extracts detailed environmental measurements from surveillance radars such as the AN/SPY-1 phased array radar aboard the U.S. Navy’s Aegis cruisers and destroyers. The TEP program benefits both “warfighters” and meteorologists, and is intended to be an effective tool for both user groups.

Lockheed Martin Maritime Systems & Sensors provides surface, air, and undersea applications for U.S. and allied forces, including radar and surveillance systems, undersea combat systems, and C4I surface-combat systems and sensors; as well as advanced technology products, including some of the most advanced ship hull forms operating today.

“As an early adopter of the COTS philosophy for embedded servers, SKY leverages industry-standard computing hardware, software, development tools, and interconnects to help reduce a defense customer’s development, deployment, and maintenance time, cost, and risk,” said Don Barry, president of SKY Computers. “The order from Lockheed Martin to serve the Navy’s TEP program is validation that defense contractors and integrators seek a high-performance embedded server and computing platform with unprecedented flexibility.”

SKY’s SMARTpac Systems also readily adapt to many other defense-related applications, such as Software Defined Radio, shallow-water mine detectors in Navtronics, foliage-penetrating radars in Avionics, and targeting radars in Vetronics. SKY’s SMARTpac Systems architecture and experience allow for configurations to be customized to specific applications. SMARTpac was designed to meet a wide range of defense and military sub-system needs that share common application requirements.

About SKY Computers
SKY Computers, Inc., a wholly owned subsidiary of Analogic Corporation (NASDAQ: ALOG), is the leading supplier of standards-based, high-performance embedded computer systems. SKY’s broad range of commercial-off-the-shelf products meets the embedded computing requirements for high-performance embedded computing applications. Standards and open-source software are combined with advanced technologies to provide solutions for demanding military and defense electronics, industrial inspection, medical imaging, and security applications. For additional information, please visit www.skycomputers.com.