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/SECOND AND FINAL ADD -- DCTH006 -- Lockheed Martin Corporation/
PRNewswire
                       LOCKHEED MARTIN CORPORATION
                           Consolidated Results
                        Preliminary and Unaudited
         (In millions, except for per share data and percentages)

                           Quarter Ended               Year To Date
                           September 30,               September 30,
                                          %                           %
                      2000       1999   Change    2000      1999   Change

  Net Sales         $5,960     $6,157     -3%  $17,734   $18,548      -4%
  Earnings (Loss)
    before Interest
    and Taxes         -$26       $558   -105%     $625    $1,308     -52%
  Interest Expense    $229       $200     15%     $676      $583      16%
  Pre-tax
    Earnings (Loss)  -$255       $358   -171%     -$51      $725    -107%
  Income Taxes        $449       $141    218%     $557      $281      98%
  Effective Tax
   Rate                N/M        39%     N/M      N/M       39%      N/M
  Earnings (Loss)
    before Cumulative
    Effect of Change
    in Accounting    -$704       $217   -424%    -$608      $444    -237%
  Cumulative Effect
    of Change in
    Accounting (a)      $0         $0     N/M       $0     -$355      N/M
  Net Earnings
   (Loss)            -$704       $217   -424%    -$608       $89    -783%
  Basic Earnings
    (Loss) Per
    Share:
    Earnings (Loss)
    before
    Cumulative
    Effect of Change
    in Accounting   -$1.74      $0.57   -405%   -$1.54     $1.16    -233%
   Cumulative Effect
    of Change in
   Accounting (a)    $0.00      $0.00     N/M    $0.00    -$0.93      N/M
  Earnings (Loss)
    Per Share       -$1.74      $0.57   -405%   -$1.54     $0.23    -770%
  Average Basic
    Shares
    Outstanding      405.6      382.8            394.1     381.5
  Diluted Earnings
    (Loss) Per
    Share:
   Earnings (Loss)
    before
    Cumulative Effect
    of Change in
    Accounting      -$1.74      $0.57   -405%   -$1.54     $1.16    -233%
   Cumulative Effect
   of Change in
   Accounting (a)    $0.00      $0.00     N/M    $0.00    -$0.93      N/M
   Earnings (Loss)
    Per Share       -$1.74      $0.57   -405%   -$1.54     $0.23    -770%
  Average Diluted
    Shares
    Outstanding  405.6 (b)      384.7             394.1(b) 383.8

  (a) The Corporation adopted the American Institute of Certified Public
      Accountants' Statement of Position (SOP) No. 98-5, "Reporting on the
      Costs of Start-Up Activities" effective January 1, 1999.

  (b) Due to Antidilution, Basic shares are utilized as Diluted shares.

                       LOCKHEED MARTIN CORPORATION
         Segment Results Including Nonrecurring and Unusual Items
                        Preliminary and Unaudited
                  (In millions, except for percentages)

                           Quarter Ended               Year To Date
                           September 30,               September 30,
                                          %                           %
                      2000       1999   Change    2000      1999   Change
  Systems
   Integration (a)
  Net Sales         $2,325     $2,329      0%   $6,730    $6,928      -3%
  Segment EBIT       -$215       $271   -179%     $155      $644     -76%
  Margins            -9.2%      11.6%             2.3%      9.3%
  Amortization of
    Goodwill and
    Contract
    Intangibles        $59        $69             $195      $206

  Space Systems (a)
  Net Sales         $1,640     $1,779     -8%   $5,092    $5,397      -6%
  Segment EBIT        $113       $126    -10%     $326      $336      -3%
  Margins             6.9%       7.1%             6.4%      6.2%
  Amortization of
    Goodwill and
    Contract
    Intangibles        $14        $15              $42       $43


  Aeronautical
    Systems
  Net Sales         $1,038     $1,214    -14%   $3,327    $3,980     -16%
  Segment EBIT         $77       $105    -27%     $245      $151      62%
  Margins             7.4%       8.6%             7.4%      3.8%
  Amortization of
    Goodwill and
    Contract
    Intangibles        $20        $20              $60       $60

  Technology
    Services (b)
  Net Sales           $566       $584     -3%   $1,629    $1,569       4%
  Segment EBIT         $18        $29    -38%      $80       $97     -18%
  Margins             3.2%       5.0%             4.9%      6.2%
  Amortization of
    Goodwill and
    Contract
    Intangibles         $5         $4              $14       $13

  Global
   Telecommunications
   (c)
  Net Sales           $214        $85    152%     $498      $260      92%
  Segment EBIT        -$23       -$21    -10%     -$81      -$75      -8%
  Margins           -10.7%     -24.7%           -16.3%    -28.8%
  Amortization of
    Goodwill and
    Contract
    Intangibles        $15         $0              $30        $0

  Corporate
    and Other (d)
  Net Sales           $177       $166      7%     $458      $414      11%
  Segment EBIT          $4        $48     N/M    -$100      $155      N/M
  Margins              N/M        N/M              N/M       N/M
  Amortization of
    Goodwill and
    Contract
    Intangibles         $0         $0               $1        $1

  (a) 2000 and 1999 results have been restated to reflect the transfer of
      the Management and Data Systems operating unit and the Space
      Applications Systems product line from the Systems Integration
      business area to the Space Systems business area.

  (b) 1999 results include the operations of LM Hanford Company, which
      was divested during 1999.

  (c) A new segment called Global Telecommunications is presented. This
      new segment reflects the operations of Lockheed Martin Global
      Telecommunications (LMGT), which includes COMSAT and Integrated
      Business Solutions (IBS).  The operations of both LMGT and IBS were
      previously included in the Corporate and Other business segment.

  (d) 2000 and 1999 results include the operations of state and local
      government services lines of business. 1999 results include the
      operations of Real3D, Inc. and the communications industry services
      line of business which were divested during 1999.


                       LOCKHEED MARTIN CORPORATION
         Segment Results Excluding Nonrecurring and Unusual Items
                        Preliminary and Unaudited
                  (In millions, except for percentages)

                             Quarter Ended              Year to Date
                             September 30,             September 30,
                                          %                          %
                      2000       1999  Change     2000      1999   Change
  Systems
   Integration (a)
  Net Sales         $2,325     $2,329      0%   $6,730    $6,928      -3%
  Segment EBIT        $240       $271    -11%     $610      $644      -5%
  Margins            10.3%      11.6%             9.1%      9.3%
  Amortization of
   Goodwill and
   Contract
   Intangibles         $59        $69             $195      $206

  Space Systems (a)
  Net Sales         $1,640     $1,779     -8%   $5,092    $5,397      -6%
  Segment EBIT        $113       $107      6%     $309      $337      -8%
  Margins             6.9%       6.0%             6.1%      6.2%
  Amortization of
   Goodwill and
   Contract
   Intangibles         $14        $15              $42       $43

  Aeronautical
   Systems
  Net Sales         $1,038     $1,214    -14%   $3,327    $3,980     -16%
  Segment EBIT         $77       $105    -27%     $245      $151      62%
  Margins             7.4%       8.6%             7.4%      3.8%
  Amortization of
   Goodwill and
   Contract
   Intangibles         $20        $20              $60       $60

  Technology
   Services (b)
  Net Sales           $566       $584     -3%   $1,629    $1,569       4%
  Segment EBIT         $46        $29     59%     $114       $97      18%
  Margins             8.1%       5.0%             7.0%      6.2%
  Amortization of
   Goodwill and
   Contract
   Intangibles          $5         $4              $14       $13

  Global
   Telecommunications (c)
  Net Sales           $214        $85    152%     $498      $260      92%
  Segment EBIT        -$23       -$21    -10%     -$81      -$75      -8%
  Margins           -10.7%     -24.7%           -16.3%    -28.8%
  Amortization of
   Goodwill and
   Contract
   Intangibles         $15         $0              $30        $0

  Corporate
   and Other (d)
  Net Sales           $177       $166      7%     $458      $414      11%
  Segment EBIT          $4        $14     N/M       $9        $7      N/M
  Margins              N/M        N/M              N/M       N/M
  Amortization of
   Goodwill and
   Contract
   Intangibles          $0         $0               $1        $1


  (a) 2000 and 1999 results have been restated to reflect the transfer of
      the Management and Data Systems operating unit and the Space
      Applications Systems product line from the Systems Integration
      business area to the Space Systems business area.

  (b) 1999 results include the operations of LM Hanford Company, which was
      divested during 1999.

  (c) A new segment called Global Telecommunications is presented. This new
      segment reflects the operations of Lockheed Martin Global
      Telecommunications (LMGT), which includes COMSAT and Integrated
      Business Solutions (IBS).  The operations of both LMGT and IBS were
      previously included in the Corporate and Other business segment.

  (d) 2000 and 1999 results include the operations of state and local
      government services lines of business. 1999 results include the
      operations of Real3D, Inc. and the communications industry services
      line of business which were divested during 1999.

                       LOCKHEED MARTIN CORPORATION
               Reconciliation of Pro Forma Net Earnings (a)
                        Preliminary and Unaudited
       (In millions, except for per share amounts and percentages)

                              Quarter Ended               Year To Date
                              September 30,                September 30,
                            2000          1999         2000           1999

  Net Earnings (Loss) --
    As Reported            -$704          $217        -$608           $89
  After Tax Impairment
    Loss on AES Businesses  $980            $0         $980            $0
  After Tax Gain on
    Control Systems
    Divestiture            -$180            $0        -$180            $0
  After Tax Loss on
    Globalstar Guarantee      $0            $0          $91            $0
  After Tax Effect of
    Reversal of Calcomp
    Charge                    $0            $0         -$21            $0
  After Tax Gain on
    L3 Disposition            $0            $0           $0          -$74
  After Tax Gain on Sale
    of Surplus Real Estate   -$3          -$15         -$13          -$15
  After Tax Net (Gain)
    Loss on Divestitures
    and Other                $22          -$19          $26           -$7
  Cumulative Effect of
    Change in Accounting      $0            $0           $0          $355
  Pro Forma Net Earnings    $115          $183         $275          $348
  Pro Forma Effective
    Tax Rate               49.3%         39.5%        48.0%         39.5%
  Diluted Earnings (Loss)
   Per Share -- As
    Reported (b)          -$1.74         $0.57       -$1.54         $0.23
  After Tax Impairment
    Loss on AES
    Businesses (b)         $2.42         $0.00        $2.49         $0.00
  After Tax Gain on Control
    Systems
    Divestiture (b)        -$.44         $0.00       -$0.46         $0.00
  After Tax Loss on
    Globalstar Guarantee   $0.00         $0.00        $0.23         $0.00
  After Tax Effect of
    Reversal of
    Calcomp Charge         $0.00         $0.00       -$0.05         $0.00
  After Tax Gain on
    L3 Disposition         $0.00         $0.00        $0.00        -$0.19
  After Tax Gain on
    Sale of Surplus
    Real Estate (b)       -$0.01        -$0.04       -$0.03        -$0.04
  After Tax Net (Gain)
    Loss on Divestitures
    and Other              $0.05        -$0.05        $0.06        -$0.02
  Cumulative Effect of
    Change in Accounting   $0.00         $0.00        $0.00         $0.93
  Pro Forma Diluted
    Earnings Per Share     $0.28         $0.48        $0.70         $0.91

   (a) Excludes nonrecurring and unusual items.

   (b) Due to the impact that the issuance of Lockheed Martin shares in
       the merger with COMSAT had on the weighted average number of
       shares outstanding used in computing earnings per share, the earnings
       per share effects of individual transactions may be different for the
       quarter versus the nine months ended September 30, 2000.

                       LOCKHEED MARTIN CORPORATION
                       Other Financial Information
                        Preliminary and Unaudited
       (In millions, except for per share amounts and percentages)

                              Quarter Ended               Year to Date
                              September 30,               September 30,
                                   2000                        1999
  Pro Forma EBIT            $457          $505       $1,206        $1,161
  Pro Forma EBIT to
   Sales Margin             7.7%          8.2%         6.8%          6.3%
  Amortization of
   Goodwill and Contract
   Intangibles Resulting
   from PriorAcquisitions   $113          $108         $342          $323
  Depreciation and
   Amortization             $131          $134         $382          $382
  Pro Forma EBITDA          $701          $747       $1,930        $1,866

                                             September 30,   December 31,
                                                      2000        1999(a)
  Total Backlog                                    $55,906        $45,913
   Systems Integration                             $16,953        $13,971
   Space Systems                                   $15,446        $15,998
   Aeronautical Systems                            $16,744         $9,003
   Technology Services                              $4,352         $4,399
   Global Telecommunications                        $1,524         $1,533
   Corporate and Other                                $887         $1,009

  Total Debt                                       $11,844        $11,954
   Long-term (including
    current maturities)                            $11,841        $11,479
   Short-term                                           $3           $475
  Cash and Cash Equivalents                         $1,938           $455
  Stockholders' Equity                              $7,082         $6,361
  Total Debt-to-Capital                                63%            65%
  Total Debt-to-Capital
   (net of invested cash)                              58%            64%

  (a) 1999 results have been restated to reflect the transfer of the
      Management and Data Systems operating unit and the Space Applications
      Systems product line from the Systems Integration business area to
      the Space Systems business area. Additionally, a new segment called
      Global Telecommunications is presented.  This new segment reflects the
      operations of Lockheed Martin Global Telecommunications (LMGT), which
      includes COMSAT and Integrated Business Solutions (IBS). The
      operations of both LMGT and IBS were previously included in the
      Corporate and Other business segment.

                       LOCKHEED MARTIN CORPORATION
                   Consolidated Condensed Balance Sheet
                        Preliminary and Unaudited
                              (In millions)

                                             September 30,   December 31,
                                                      2000           1999
  Assets
  Cash and cash equivalents                        $ 1,938           $455
  Accounts Receivable                                4,202          4,348
  Inventories                                        4,216          4,051
  Other current assets                               2,982          1,842
    Total current assets                            13,338         10,696
  Property, plant and equipment                      3,439          3,634
  Goodwill and other intangible assets               9,917         10,421
  Other noncurrent assets                            5,577          5,261
    Total assets                                   $32,271        $30,012
  Liabilities and Stockholders' Equity
  Short-term borrowings                                 $3           $475
  Other accrued expenses                             9,455          8,285
  Current portion of long-term debt                    879             52
    Total current liabilities                       10,337          8,812
  Long-term debt                                    10,962         11,427
  Post-retirement and
   other noncurrent liabilities                      3,890          3,412
  Stockholders' equity                               7,082          6,361
    Total liabilities and
     stockholders' equity                          $32,271        $30,012


                       LOCKHEED MARTIN CORPORATION
              Consolidated Condensed Statement of Cash Flows
                        Preliminary and Unaudited
                              (In millions)

                                                   Year To      September
                                                      Date            30,
                                                      2000           1999
  Operating Activities:
  Earnings before cumulative effect of
   change in accounting                              $-608           $444
  Adjustments to reconcile earnings to net cash
   provided by operating activities:
    Depreciation and amortization                      724            705
    Changes in operating assets and liabilities      1,629           -766
    Net cash provided by operating activities        1,745            383
  Investing Activities:
  Expenditures for property, plant & equipment        -283           -442
  Sale of Control Systems                              510             --
  Consummation of COMSAT tender offer                   --         -1,197
  Sale of shares in L-3 Communications                  --            182
  Other                                                152           -108
    Net cash provided by (used for)
     investing activities                              379         -1,565
  Financing Activities:
  Net (decrease) increase in short-term borrowings    -475          1,881
  Net repayments of debt                               -40           -743
  Issuance of common stock                               6             17
  Common stock dividends                              -132           -258
    Net cash provided by (used for)
     financing activities                             -641            897
  Net increase (decrease) in cash and
   cash equivalents                                  1,483           -285
  Cash and cash equivalents at beginning
   of period                                           455            285
  Cash and cash equivalents at end of period        $1,938             --

                       LOCKHEED MARTIN CORPORATION
                              Operating Data

                              Quarter Ended                Year To Date
                               September 30,               September 30,
                                   2000                         1999
  Deliveries
  F-16                         8            28           34            86
  C-130J                       4             8           14            18

  Launches
  Atlas                        1             1            6             3
  Proton                       1             1            3             5
  Athena                      --             1           --             3
  Titan II                     1            --            1             1
  Titan IV                     1            --            2             3

PRNewswire -- Oct. 26
END SECOND AND FINAL ADD

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