Photo courtesy of U.S. Navy

Navy Lt. j.g. Tracey Mackey signals the launch of an E-2C Hawkeye aircraft from the catapult on the flight deck of the aircraft carrier USS Enterprise (CVN 65) on Oct. 20, 2005. Enterprise and embarked Carrier Air Wing 1 are underway in the Atlantic Ocean conducting carrier qualifications. DoD photo by Petty Officer 3rd Class Rob Gaston, U.S. Navy. (Released)

The U.S. Navy expects great things from a small Blacksburg technology company linked up with Lockheed Martin, a giant defense contractor whose 2007 sales totaled nearly $42 billion.

And those high expectations seem destined to create new high-tech manufacturing jobs in the New River Valley.

With assistance from the Navy, Lockheed Martin and Morehouse College, Aegisound plans to manufacture a new generation of hearing protection equipment it has developed for military crews who brave earsplitting racket and risk their hearing on the flight decks of aircraft carriers.

Wednesday, executives from Lockheed and Aegisound, U.S. Rep. Rick Boucher, D-Abingdon, officials from the Navy and others announced that Lockheed will work with Aegisound for three years to help the small company become a first-class supplier to defense, aerospace and commercial markets.

Lockheed has a stake in the outcome because it's on the hook to provide high-tech hearing, communications and head protection equipment to the Navy. The defense contractor's obligation is tied to its contract for producing the F-35 Lightning II jet. The new aircraft will be a fifth-generation stealth fighter, according to Lockheed.

Aegisound, incorporated in 2004, is an affiliate of Adaptive Technologies Inc., which developed the technology that undergirds the "extreme environment" hearing and head protection devices Aegisound will produce. For now, both Aegisound and ATI are based in the Virginia Tech Corporate Research Center.

But Aegisound plans to move from the research center and launch manufacturing sometime in 2009.

Jeffrey Hammel, Aegisound's chief financial officer, said a manufacturing site has not been selected. But he, Aegisound Chief Operating Officer Gary Gibbs and Boucher all pledged that manufacturing will occur in the New River Valley.

The small company, which employs 10, anticipates hiring five more before the end of 2008 and says it ultimately could need about 30 total employees in coming years for manufacturing operations.

The new protection equipment -- which ranges from custom-molded, deep-insert earplugs to sophisticated headgear -- should help reduce the potential for hearing loss affecting crews on aircraft carriers.

Some units are designed also to improve communication comprehension among crew members in a setting where the high-decibel din of jet engines challenges interaction.

According to the Veterans Health Administration, it pays more than $1.2 billion annually in compensation costs for hearing loss and tinnitus -- a condition that involves ringing, whistling or other noises in the ears.

Current hearing-protection devices for flight deck crews are based on 50-year-old technology, according to Lockheed.

The Navy previously awarded Aegisound a $5 million contract to support research and development of new hearing protection equipment.

Wednesday's announcement focused on a Department of Defense Mentor-Protege Program agreement between Lockheed and Aegisound, with Aegisound as the protege. Lockheed will provide technical assistance and other expertise as Aegisound moves into production.

Sharon Dougherty, Lockheed Martin Aeronautics' Mentor-Protege Program manager, said the company will work with Aegisound to produce the best hearing and head protection equipment available.

"We intend to make this a successful agreement, and we intend to have a satisfied Navy customer," she said.

According to the Defense Department, the Mentor-Protege Program helps small businesses compete for prime contract and subcontract awards by becoming partners of a sort with large companies under individual, project-based agreements.

Boucher said the history of ATI, founded in 1997 by William Saunders and Mike Vaudrey, and its affiliate Aegisound provides a successful example of how the Corporate Research Center is supposed to function -- linking Virginia Tech expertise to startup technology companies that develop new products and eventually take them to market.

"It's a great success story and it confirms the vision of the founders of the CRC," Boucher said.