Releases

Lockheed Martin Reports 2004 Second Quarter Results
* REPORTS SECOND QUARTER 2004 NET SALES OF $8.8 BILLION, UP 14%; YEAR-TO-DATE SALES UP 16% TO $17.1 BILLION
* REPORTS SECOND QUARTER 2004 EARNINGS PER SHARE OF $0.66, UP 22%; YEAR-TO-DATE EARNINGS PER SHARE UP 20% TO $1.31
* GENERATES $734 MILLION IN CASH FROM OPERATIONS IN THE SECOND QUARTER; $1.8 BILLION YEAR-TO-DATE
PRNewswire-FirstCall
BETHESDA, Md.

Lockheed Martin Corporation today reported second quarter 2004 net earnings of $296 million ($0.66 per diluted share) compared to $242 million ($0.54 per diluted share) in 2003. Net sales were $8.8 billion, a 14% increase over second quarter 2003 sales of $7.7 billion. Sales and operating profit grew in all business segments during the quarter. Cash provided by operating activities for the second quarter of 2004 was $734 million.

"With our strong performance through the first six months, we are on our way to meeting this year's operational and financial goals," said Chairman and Chief Executive Officer Vance Coffman. "Our cash generation continues to be outstanding, and we spent over $275 million repurchasing about 6 million shares during the quarter. We are well positioned and focused on serving the needs of our customers and enhancing shareholder value."

SUMMARY REPORTED RESULTS AND OUTLOOK

The following table presents the Corporation's results on a GAAP basis for the quarter and year-to-date periods:

  REPORTED RESULTS
  (In millions, except        2nd Quarter               Year-to-Date
   per share data)         2004         2003         2004         2003

  Net sales               $8,776       $7,709      $17,123      $14,768

  Operating profit
    Segment operating
     profit                 $740         $592       $1,408       $1,144
    Unallocated corporate
    (expense), net:
      FAS/CAS pension
       adjustment           (148)         (68)        (298)        (140)
      Other                  (48)         (54)         (30)         (29)
                            $544         $470       $1,080         $975

  Net earnings              $296         $242         $587         $492

  Diluted earnings
   per share               $0.66        $0.54        $1.31        $1.09

  Cash flow
   from operations          $734         $845       $1,796       $1,389


The following table and other sections of this press release contain forward-looking statements, which are based on the Corporation's current expectations. Actual results may differ materially from those projected. See the Forward-Looking Statements discussion included in this press release.

  OUTLOOK
  (In millions, except per share data)         2004 Projections

  Net sales                                   $33,800 - $34,800*

  Operating profit:
    Segment operating profit                   $2,700 - $2,800*
    Unallocated corporate (expense)
     income, net:
      FAS/CAS pension adjustment                approx. (600)
      Other                                       (50) - 0
                                               $2,050 - $2,200*

  Diluted earnings per share                    $2.50 - $2.60*
  Cash flow from operations                     Approx. $2,400

  * Results are expected to be closer to the higher end of the range.


  Year-to-Date Results

Net sales for the first six months of 2004 were $17.1 billion, a 16% increase over the $14.8 billion recorded in the comparable 2003 period.

Net earnings for the six months ended June 30, 2004 were $587 million ($1.31 per share) compared to $492 million ($1.09 per share) in 2003. The 2003 results included a pre-tax charge of $41 million (reported in Unallocated Corporate Expense, net) related to the Corporation's exit from the commercial mail sorting business, which decreased earnings by $27 million ($0.06 per share).

Cash Flow, Leverage and Backlog

Cash provided by operating activities for the quarter and six months ended June 30, 2004 was $734 million and $1.8 billion. Capital expenditures for the quarter and six months ended June 30, 2004 were $154 million and $260 million. The Corporation repurchased 5.8 million of its common shares for $278 million during the quarter and retired $137 million of debt during the first six months of 2004. Since October 2002, the Corporation has used approximately $800 million to repurchase 17.5 million shares of its common stock. Additionally, the Corporation has reduced its long-term debt from approximately $12 billion at the end of 1999 to approximately $6 billion at June 30, 2004.

The ratio of total debt-to-capitalization was 46% at the end of the second quarter, an improvement from 48% at December 31, 2003. At June 30, 2004, the Corporation's cash and cash equivalents balance was $2.2 billion.

  The Corporation's backlog was $74.6 billion at June 30, 2004.

  SEGMENT RESULTS

The Corporation operates in five business segments. Consistent with the manner in which the Corporation's business segment operating performance is evaluated, unusual items are excluded from segment results and included in "Unallocated corporate (expense) income, net." (See our 2003 Form 10-K for a description of "Unallocated corporate (expense) income, net," including the FAS / CAS pension adjustment.)

The following table presents the operating results of the five business segments and the Corporation on a consolidated basis as determined by GAAP:

  (In millions)               2nd Quarter               Year-to-Date
                           2004         2003         2004         2003
  Net sales
    Aeronautics           $3,141       $2,405       $6,015       $4,493
    Electronic Systems     2,205        2,174        4,338        4,155
    Space Systems          1,547        1,544        3,125        3,072
    Integrated Systems
     & Solutions             963          810        1,870        1,582
    Information &
     Technology Services     917          772        1,769        1,459
      Operating segments   8,773        7,705       17,117       14,761

    Other                      3            4            6            7

    Total net sales       $8,776       $7,709      $17,123      $14,768

  Operating profit
    Aeronautics             $239         $162         $445         $307
    Electronic Systems       220          211          422          394
    Space Systems            129          101          249          205
    Integrated Systems
     & Solutions              81           67          161          139
    Information &
     Technology Services      71           51          131           99
      Segment operating
       profit                740          592        1,408        1,144

    Unallocated corporate
     (expense) net:
      FAS/CAS pension
       adjustment           (148)         (68)        (298)        (140)
      Other                  (48)         (54)         (30)         (29)

  Total operating profit    $544         $470       $1,080         $975


The following discussion compares the operating results of the business segments for the quarter and six months ended June 30, 2004 to the same periods in 2003.

  Aeronautics
  ($ millions)
                              2nd Quarter               Year-to-Date
                           2004         2003         2004         2003

  Net sales               $3,141       $2,405       $6,015       $4,493
  Operating profit          $239         $162         $445         $307


Net sales for Aeronautics increased by 31% for the quarter and 34% for the six months ended June 30, 2004 from the 2003 periods, due to growth in Combat Aircraft, which more than offset a slight decline in Air Mobility. Combat Aircraft sales growth of $790 million in the quarter and $1.5 billion for the six-month period was primarily due to higher F-16 program volume including increased aircraft deliveries (22 in the quarter and 37 for the six month period in 2004 compared to 12 and 15 in the comparable 2003 periods) and higher volume on the F-35 program. Fewer scheduled C-130J deliveries (two in the quarter and six for the six month period in 2004 compared to four and seven in the comparable 2003 periods) contributed to the slight decrease in Air Mobility revenue.

Segment operating profit increased by 48% for the quarter and 45% for the six months ended June 30, 2004 from the 2003 periods. Combat Aircraft operating profit increases of $60 million in the quarter and $80 million for the six-month period were primarily due to the impact of the additional F-16 aircraft deliveries and improved performance in other Combat Aircraft programs. Air Mobility and other programs accounted for approximately $20 million and $60 million of the increase in operating profit for the quarter and year-to-date periods, and were primarily due to profits recognized on C- 130J deliveries in 2004. The Corporation began recognizing profits on C-130J deliveries in 2004 (approximately $35 million year-to-date) upon resolution of certain technical aircraft performance risks, manufacturing performance improvements and the achievement of stable production as a result of securing a multi-year contract in 2003.

  Electronic Systems
  ($ millions)
                              2nd Quarter              Year-to-Date
                           2004         2003         2004         2003

  Net sales               $2,205       $2,174       $4,338       $4,155
  Operating profit          $220         $211         $422         $394


Net sales for Electronic Systems increased by 1% for the quarter and 4% for the six months ended June 30, 2004 from the 2003 periods. In both the quarter and six-month periods, higher volume in Maritime Systems & Sensors (MS2) and Missiles & Fire Control (M&FC), more than offset declines in Platform, Training & Transportation Solutions (PT&TS). In MS2, higher volume on surface systems and radar programs accounted for the increased sales. M&FC sales grew due to higher volume on tactical missile and fire control programs. Reduced levels of distribution technology and transportation & security solutions activities contributed to the decrease in sales at PT&TS.

Segment operating profit increased by 4% for the quarter and 7% for the six months ended June 30, 2004, compared to the 2003 periods. For both the quarter and the six-month period, improved performance on air defense and fire control programs at M&FC and on distribution technology and simulation and training programs at PT&TS, contributed to the higher operating profit. MS2's operating profit improved slightly in both periods.

  Space Systems
  ($ millions)
                              2nd Quarter               Year-to-Date
                           2004         2003         2004         2003

  Net sales               $1,547       $1,544       $3,125       $3,072
  Operating profit          $129         $101         $249         $205


Net sales for Space Systems increased nominally for the quarter and by 2% for the six months ended June 30, 2004 from the 2003 periods. For the second quarter of 2004, a sales increase in Satellites, due to a commercial satellite delivery, and the timing of sales on fleet ballistic missile programs at Strategic and Defensive Missile Systems (S&DMS) were partially offset by lower volume in Launch Services. A decline in activities on the maturing Titan launch vehicle program contributed to lower sales in Launch Services. There were two Atlas launches and one Proton launch in the second quarters of both 2004 and 2003.

For the six months ended June 30, 2004, sales increases in Launch Services and S&DMS offset a decline in Satellites. In Launch Services, an increase in Atlas launches (four in 2004 compared to two in 2003) more than offset a decline in the Titan launch vehicle program. The increase in S&DMS was primarily attributable to the timing of sales on fleet ballistic missile programs. The decrease in Satellites was mainly due to lower sales on commercial satellite deliveries in 2004, which was partially offset by increased volume in government satellite programs.

Segment operating profit increased by 28% for the quarter and 21% for the six months ended June 30, 2004, when compared to the 2003 periods. For the quarter, Satellites' operating profit increased due to the additional delivery and improved performance on commercial satellite programs, which more than offset a decline due to cost growth on a government satellite program. Increased operating profit in Launch Services was due to government launch vehicles programs.

For the six-month period, Launch Services' operating profit increased primarily due to the benefit resulting from the first quarter termination of a launch vehicle contract by a commercial customer and U.S. Government support of the Atlas program, which more than offset a decline in activities on the Titan launch vehicle program. Satellites' operating profit declined due to cost growth on a government satellite program, which more than offset the impact of improved performance and more profitable deliveries in commercial satellites.

  Integrated Systems & Solutions
  ($ millions)
                               2nd Quarter              Year-to-Date
                            2004         2003         2004         2003

  Net sales                 $963         $810       $1,870       $1,582
  Operating profit           $81          $67         $161         $139


Net sales for Integrated Systems & Solutions increased by 19% for the quarter and 18% for the six months ended June 30, 2004 from the 2003 periods. For both the quarter and six-month periods, a higher volume of intelligence, defense and information assurance activities resulted in increased sales.

Segment operating profit increased by 21% for the quarter and 16% for the six months ended June 30, 2004 from the comparable 2003 periods. For both the quarter and six-month periods, the higher volume on the activities described above accounted for the increased operating profit.

  Information & Technology Services
  ($ millions)
                               2nd Quarter              Year-to-Date
                            2004         2003         2004         2003

  Net sales                 $917         $772       $1,769       $1,459
  Operating profit           $71          $51         $131          $99


Net sales for Information & Technology Services increased by 19% for the quarter and 21% for the six months ended June 30, 2004 from the 2003 periods. For both the quarter and year-to-date periods, the increases in sales were primarily attributable to higher volume in the Information Technology line of business. Information Technology's sales improved due to the net impact of an acquisition and a divestiture, as well as organic growth on existing IT programs. The remaining increase in sales was primarily attributable to higher volume in Defense Services. NASA sales declined in both periods.

Segment operating profit increased by 39% for the quarter and 32% for the six months ended June 30, 2004 from the 2003 periods. In both periods the operating profit increased mainly due to improvements in Information Technology and Defense Services.

  SECOND QUARTER 2004 HIGHLIGHTS

  *  Received contracts for 22 F/A-22 fighter aircraft and associated
     support activities under production Lot 4.

  *  Received a contract to procure long-lead items for 24 F/A-22 fighter
     aircraft under production Lot 5.

  *  Delivered the last four F/A-22's under production Lot 1 to the U.S. Air
     Force during the quarter, bringing to 27 the total number of Raptors
     delivered inception to date on the program.

  *  Selected to design and build the first of the U.S. Navy's new Littoral
     Combat Ships.

  *  Awarded a contract to develop the Joint Common Missile, a new air-to-
     ground weapon that will be deployed aboard U.S. Army, Navy and Marine
     Corps fixed- and rotary-wing aircraft.

  *  Received an award for work on the U.S. Navy's MH-60R maritime
     helicopter program.

  *  Selected to produce the new Compact Kinetic Energy Missile, the next-
     generation hypervelocity anti-tank weapon.

  *  Awarded one of two industry contracts for the concept development phase
     of the U.S. Air Force's Space Based Radar program.

  *  Awarded a five-year information technology contract from the
     Environmental Protection Agency.

  *  Received a two-year option on the Mission Support Operations Contract -
     Houston Mission Control Center.

Conference call: Lockheed Martin will webcast the earnings conference call (listen-only mode) at 11 a.m. E.T. on July 27, 2004. A live audio broadcast, including relevant charts, will be available on the Investor Relations page of the company's web site at: http://www.lockheedmartin.com/investor.

FORWARD-LOOKING STATEMENTS

Statements in this release that are "forward-looking statements" are based on Lockheed Martin's current expectations and assumptions. Forward-looking statements in this release include estimates of future sales, earnings and cash flow. These statements are not guarantees of future performance and are subject to risks and uncertainties. Actual results could differ materially because of factors such as: the availability of government funding domestically and internationally; changes in government and customer priorities and requirements (including changes to respond to terrorist threats and improve homeland security); the impact of continued hostilities in Iraq on funding for existing defense programs; the award or termination of contracts; difficulties in developing and producing operationally advanced technology systems; the timing and customer acceptance of product deliveries; performance issues with key suppliers, subcontractors and customers; cost reduction and productivity efforts; financial market and other changes that may impact pension plan assumptions; charges from any future impairment reviews that may result in the recognition of losses and a reduction in the book value of investments, goodwill or other long-term assets; the future impact of legislation; the future impact of acquisitions or divestitures; the outcome of legal proceedings and other contingencies (including, lawsuits, government investigations and environmental remediation efforts); the competitive environment for defense and information technology products and services; and economic, business and political conditions domestically and internationally.

These are only some of the factors that may affect the forward-looking statements contained in this press release. For further information regarding risks and uncertainties associated with Lockheed Martin's business, please refer to the "Management's Discussion and Analysis of Results of Operations and Financial Condition" and "Risk Factors and Forward-Looking Statements" sections of the Corporation's SEC filings, including its annual report on Form 10-K, copies of which may be obtained at the Corporation's website: http://www.lockheedmartin.com/.

All information in this release is as of July 27, 2004. Lockheed Martin undertakes no duty to update any forward-looking statement to reflect subsequent events, actual results or changes in the Corporation's expectations.

                       LOCKHEED MARTIN CORPORATION
                           Consolidated Results
                        Preliminary and Unaudited
           (In millions, except per share data and percentages)


                                        QUARTER ENDED      YEAR TO DATE
                                           JUNE 30,          JUNE 30,

                                         2004    2003     2004     2003

  Net Sales                             $8,776  $7,709  $17,123  $14,768

  Operating Profit [EBIT]                 $544    $470   $1,080     $975

  Interest Expense                        $106    $119     $214     $259

  Pre-tax Earnings                        $438    $351     $866     $716

  Income Tax Expense                      $142    $109     $279     $224

    Effective Tax Rate                    32.4%   31.1%    32.2%    31.3%

  Net Earnings                            $296    $242     $587     $492

  Earnings Per Share:
     Basic                               $0.67   $0.54    $1.32    $1.10
     Diluted                             $0.66   $0.54    $1.31    $1.09

  Average Shares Outstanding:
     Basic                               443.9   445.3    444.1    447.1
     Diluted                             447.0   448.7    447.2    450.6



                       LOCKHEED MARTIN CORPORATION
                      Net Sales and Operating Profit
                        Preliminary and Unaudited
                    (In millions, except percentages)


                             QUARTER ENDED JUNE 30,   YEAR TO DATE JUNE 30,

                                               %                        %
                              2004    2003   Change   2004     2003   Change
  Net sales
    Aeronautics              $3,141  $2,405    31%   $6,015   $4,493    34%
    Electronic Systems        2,205   2,174     1%    4,338    4,155     4%
    Space Systems             1,547   1,544     -%    3,125    3,072     2%
    Integrated Systems
     & Solutions                963     810    19%    1,870    1,582    18%
    Information &
     Technology Services        917     772    19%    1,769    1,459    21%
        Segment net sales     8,773   7,705    14%   17,117   14,761    16%

    Other                         3       4               6        7

        Total net sales      $8,776  $7,709    14%  $17,123  $14,768    16%


  Operating profit
    Aeronautics                $239    $162    48%     $445     $307    45%
    Electronic Systems          220     211     4%      422      394     7%
    Space Systems               129     101    28%      249      205    21%
    Integrated Systems
     & Solutions                 81      67    21%      161      139    16%
    Information &
     Technology Services         71      51    39%      131       99    32%
        Segment operating
         profit                 740     592    25%    1,408    1,144    23%

    Unallocated corporate
     expense, net(1)           (196)   (122)           (328)    (169)

        Total operating
         profit                $544    $470    16%   $1,080     $975    11%


  Margins
    Segments:
      Aeronautics              7.6%    6.7%            7.4%     6.8%
      Electronic Systems      10.0%    9.7%            9.7%     9.5%
      Space Systems            8.3%    6.5%            8.0%     6.7%
      Integrated Systems
       & Solutions             8.4%    8.3%            8.6%     8.8%
      Information &
       Technology Services     7.7%    6.6%            7.4%     6.8%

    Segments                   8.4%    7.7%            8.2%     7.8%

    Total Consolidated         6.2%    6.1%            6.3%     6.6%

  (1)  "Unallocated corporate expense, net" includes the FAS/CAS pension
       adjustment, earnings and losses from equity investments, interest
       income, costs for stock-based compensation programs, unusual items
       not considered in the evaluation of segment operating performance,
       corporate costs not allocated to the operating segments and
       miscellaneous corporate activities.



                       LOCKHEED MARTIN CORPORATION
                         Selected Financial Data
                        Preliminary and Unaudited
                              (In millions)


                                           QUARTER ENDED      YEAR TO DATE
                                              JUNE 30,          JUNE 30,

                                           2004     2003     2004     2003
  Summary of unallocated
   corporate expense, net
    FAS/CAS pension adjustment            $(148)    $(68)   $(298)   $(140)
    Other(1)                                (48)     (54)     (30)     (29)
       Unallocated corporate
        expense, net                      $(196)   $(122)   $(328)   $(169)

  (1)  Includes a $41 million charge related to the Corporation's exit from
       the commercial mail sorting business in the quarter and year-to-date
       periods ended June 30, 2003.


  FAS/CAS pension adjustment
    FAS 87 expense                        $(220)   $(117)   $(443)   $(225)
    Less: CAS costs                         (72)     (49)    (145)     (85)
      FAS/CAS pension adjustment -
       expense                            $(148)    $(68)   $(298)   $(140)


  Depreciation and amortization of
   property, plant and equipment
  Aeronautics                               $23      $20      $46      $41
  Electronic Systems                         41       37       80       74
  Space Systems                              25       27       58       54
  Integrated Systems & Solutions              9        9       16       16
  Information & Technology Services          12       10       25       21
      Segments                              110      103      225      206

  Unallocated corporate expense, net          9       13       20       18

        Total depreciation and
         amortization                      $119     $116     $245     $224


  Amortization of purchased intangibles
  Aeronautics                               $13      $13      $25      $25
  Electronic Systems                         11       12       23       24
  Space Systems                               2        2        4        4
  Integrated Systems & Solutions              4        4        7        7
  Information & Technology Services           3        1        7        3
       Segments                              33       32       66       63

  Unallocated corporate expense, net          2      -          5      -

        Total amortization of
         purchased intangibles              $35      $32      $71      $63



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


                                                 JUNE 30,       DECEMBER 31,
                                                   2004              2003
  Assets
  Cash and cash equivalents                       $2,243            $1,010
  Short-term investments                               -               240
  Accounts receivable                              3,677             4,039
  Inventories                                      2,054             2,348
  Other current assets                             1,645             1,764
      Total current assets                         9,619             9,401

  Property, plant and equipment, net               3,438             3,489
  Investments in equity securities                 1,083             1,060
  Goodwill                                         7,879             7,879
  Purchased intangibles, net                         736               807
  Prepaid pension asset                            1,122             1,213
  Other noncurrent assets                          2,363             2,326
      Total assets                               $26,240           $26,175

  Liabilities and Stockholders' Equity
  Accounts payable                                $1,522            $1,434
  Customer advances and amounts
   in excess of costs incurred                     3,762             4,256
  Other accrued expenses                           2,852             3,067
  Current maturities of long-term debt                 -               136
      Total current liabilities                    8,136             8,893

  Long-term debt                                   6,070             6,072
  Accrued pension liabilities                      1,452             1,100
  Post-retirement and other
   noncurrent liabilities                          3,548             3,354
  Stockholders' equity                             7,034             6,756

      Total liabilities and
       stockholders' equity                      $26,240           $26,175



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


                                                      YEAR TO DATE JUNE 30,
                                                     2004              2003

  Operating Activities

  Net earnings                                       $587              $492

  Adjustments to reconcile net earnings
   to net cash provided by
   operating activities:
    Depreciation and amortization of
     property, plant and equipment                    245               224
    Amortization of purchased intangibles              71                63
    Changes in operating assets and liabilities:
      Receivables                                     365               244
      Inventories                                     434               159
      Accounts payable                                 85                65
      Customer advances and amounts in
       excess of costs incurred                      (494)             (176)
      Other                                           503               318

  Net cash provided by operating activities         1,796             1,389

  Investing Activities

  Expenditures for property, plant
   and equipment                                     (260)             (202)
  Sale (purchase) of short-term investments           240              (229)
  Acquisition of businesses/investments
   in affiliated companies                              -              (219)
  Other                                                32                 7

  Net cash provided by (used for)
   investing activities                                12              (643)

  Financing Activities

  Repayments related to long-term debt               (137)           (1,209)
  Issuances of common stock                            36                22
  Repurchases of common stock                        (278)             (279)
  Common stock dividends                             (196)             (109)

  Net cash used for financing activities             (575)           (1,575)

  Net increase (decrease) in
   cash and cash equivalents                        1,233              (829)
  Cash and cash equivalents at
   beginning of period                              1,010             2,738

  Cash and cash equivalents at
   end of period                                   $2,243            $1,909



                       LOCKHEED MARTIN CORPORATION
         Consolidated Condensed Statement of Stockholders' Equity
                        Preliminary and Unaudited
                              (In millions)


                                     Additional
                           Common      Paid-In     Retained      Unearned
                           Stock       Capital     Earnings    Compensation

  Balance at
   January 1, 2004          $446       $2,477       $5,054

  Net earnings                                         587

  Common stock
   dividends                                          (196)

  Repurchases of
   common stock               (6)        (272)

  Stock awards
   and options,
   and ESOP activity           3          161                     $(25)

  Other comprehensive
   income

  Balance at
   June 30, 2004            $443       $2,366       $5,445        $(25)



                                                Accumulated
                                  Unearned        Other           Total
                                    ESOP       Comprehensive   Stockholders'
                                   Shares         (Loss)         Equity

  Balance at
  January 1, 2004                   $(17)        $(1,204)        $6,756

  Net earnings                                                      587

  Common stock
   dividends                                                       (196)

  Repurchases of
   common stock                                                    (278)

  Stock awards
   and options,
   and ESOP activity                  17                            156

  Other comprehensive
   income                                              9              9

  Balance at
   June 30, 2004                     $ -         $(1,195)        $7,034



                       LOCKHEED MARTIN CORPORATION
                        Preliminary and Unaudited
                              Operating Data
              (In millions, except deliveries and launches)


                                           JUNE 30,        DECEMBER 31,
                                             2004             2003
  Backlog
  Aeronautics                              $34,960          $37,580
  Electronic Systems                        17,922           17,339
  Space Systems                             12,723           12,813
  Integrated Systems & Solutions             4,281            4,350
  Information & Technology Services          4,674            4,817
    Total                                  $74,560          $76,899



                            QUARTER ENDED JUNE 30,     YEAR TO DATE JUNE 30,

                               2004         2003          2004        2003
  Deliveries(1)
  F-16 2                        22           12            37          15
  C-130J                         2            4             6           7

  Launches
  Atlas                          2            2             4           2
  Proton                         1            1             2           2
  Titan IV                       -            1             1           1

  (1)  Deliveries - Aircraft delivered to and accepted by customers.

  (2)  Sales were recognized upon delivery of certain aircraft (unit-of-
       delivery sales recognition) and for others, sales were recognized on
       a percentage-of-completion basis.

SOURCE: Lockheed Martin Corporation

CONTACT: News Media: Tom Jurkowsky, +1-301-897-6352, or Investor
Relations: James Ryan, +1-301-897-6584, or Mike Gabaly, +1-301-897-6455, all
of Lockheed Martin Corporation