no. Its full-time awd. There is no center diff lock. It has a planetary center diff that has a 40/60 front/rear axle torque split. So under most conditions 40% power goes to the front axle, 60% goes to the rear. The stability control system (brake-traction-control) can "redirect" power around to various wheels if need be during extreme [low traction] conditions.
Its a really nice, simple setup that works perfectly with 99% of road conditions you are going to encounter without having to choose between 2wd/4wd...you can have almost all of the "traction capability" of a 4wd vehicle without the binding/handling limitations that a 4wd vehicle has when in "part-time" 4wd mode. If that makes sense... There are no computers, clutches, viscous couplings, or any of that other complicated stuff involved.
So its technically "simpler" than the part-time 4wd system on the HD trucks.
The only limitation is if you get a front wheel airborne, or have the two back wheels on sheet ice and front wheels on dry pavement, (or any other extreme traction-difference situation), you are screwed because the whole thing will just act like an open diff and you'll go nowhere. Now before you say "OH WELL DUH ISNT THAT KINDA STUPID AND USELESS", remember that the vehicles that came with it from the factory (denali/escalade) have stability control, so if you do lift a tire airborne, the stability control system can apply brake to that one wheel, stop the wheel, and "redirect" the power, avoiding the "open-diff-syndrome" thing that would otherwise occur with an awd transfer case like this.
Ben