Releases

Lockheed Martin Reports 2004 Third Quarter Results
* Net Earnings Up 41% to $307 Million; Year-to-Date Net Earnings Up 26% to $894 Million
* Earnings Per Share Up 44% to $0.69; Year-to-Date Earnings Per Share Up 27% to $2.00
* Generates $1.0 Billion in Cash From Operations; $2.8 Billion Year-to- Date
* Net Sales Up 4% to $8.4 Billion; Year-to-Date Sales Up 12% to $25.6 Billion
* Increases Outlook for 2004 and 2005 Earnings Per Share and Cash From Operations
PRNewswire-FirstCall
BETHESDA, Md.

Lockheed Martin Corporation today reported third quarter 2004 net earnings of $307 million ($0.69 per diluted share), compared to $217 million ($0.48 per diluted share) in 2003. Net sales were $8.4 billion, a 4% increase over third quarter 2003 sales of $8.1 billion. Cash provided by operating activities for the third quarter of 2004 was $1.0 billion, after the Corporation contributed $400 million to its defined benefit pension plans' trusts to satisfy the remaining funding requirements for 2004 and to pre-fund most of its 2005 funding requirements.

"Working together, each of our 130,000 employees is contributing on a daily basis to strong operational and financial performance," said President and Chief Executive Officer Bob Stevens. "We continue to achieve important milestones, improve operational efficiencies and capture strategic new business, reflecting our rigorous focus on customer needs and shareholder value."

"Through disciplined execution we have contributed to customer mission success while expanding margins, improving cash flow, and increasing returns on invested capital," added Mr. Stevens. During the third quarter, the Corporation repurchased 3.6 million shares of common stock and announced a dividend increase of 14% to an annual rate of $1.00 per share. On October 25th, the Corporation announced tender offers to repurchase up to $850 million of long-term debt with an average coupon rate of approximately 8 percent.

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                  3rd Quarter         Year-to-Date
  (In millions, except
   per share data)                 2004      2003      2004      2003

  Net sales                      $ 8,438   $ 8,078  $ 25,561   $22,846

  Operating profit
    Segment operating profit     $   723   $   627  $  2,131   $ 1,771
    Unallocated corporate
     expense, net:
        FAS/CAS pension
         adjustment                 (148)      (80)     (446)     (220)
        Other                        (14)     (119)*     (44)     (148)*
                                 $   561   $   428   $ 1,641   $ 1,403

  Net earnings                   $   307   $   217   $   894   $   709

  Diluted earnings per share     $  0.69   $  0.48   $  2.00   $  1.57

  Cash flow from operations      $ 1,039   $   285   $ 2,835   $ 1,674

*The 2003 results included a charge of $127 million ($83 million after-tax or $0.18 per share) associated with the early retirement of approximately $970 million of long-term debt in the third quarter and $41 million ($27 million after-tax or $0.06 per share) for the exit from the commercial mail sorting business in the second quarter.

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 contained in this press release.

  OUTLOOK                                         Projections
  (In millions, except per share data)     2004                 2005


  Net sales                          $34,400 - $34,800    $34,500 - $36,000

  Operating profit:
    Segment operating profit          $2,850 - $2,900      $2,950 - $3,100
    Unallocated corporate
     expense, net:
       FAS/CAS pension adjustment      approx. (600)        (550) - (300)
       Other                           approx. (50)          (50) - 0

                                      $2,200 - $2,250      $2,425 - $2,600

  Diluted earnings per share           $2.65 - $2.75        $3.00 - $3.25

  Cash flow from                        >/= $2,750             $5,500
  operations                                             2004/2005 Combined


The outlook for 2005 operating profit and earnings per share assume that the Corporation's 2005 FAS/CAS adjustment will be within a range of ($550) to ($300) million. The range is calculated, among other factors, based on the assumption that the discount rate of 6.25% remains unchanged, the 2004 actual return on plan assets and the 2005 expected return on plan assets is 8.50% as previously projected. The 2005 FAS/CAS adjustment will not be finalized until year-end, consistent with the Corporation's plan measurement date. The Corporation expects to update its 2005 outlook, as necessary, when it announces 2004 year-end financial results.

It is the Corporation's practice not to incorporate adjustments to its outlook and projections for proposed acquisitions, divestitures or other unusual activities (e.g., debt tender offers) until such transactions have been consummated.

The debt tender offers announced on October 25, 2004 are expected to result in an unusual charge for early repayment of debt in the fourth quarter of 2004 (currently estimated to be approximately $90 million, or approximately $0.20 per share) and a reduction of Lockheed Martin's interest expense in future periods (currently estimated to be approximately $0.10 per share annually). The exact amount of the charge and interest savings will be finalized when the tender offers have been completed and will depend on the amount of debt tendered and the aggregate purchase price for the bonds.

The charge mentioned above may be offset partially or in its entirety, by other unusual items in the fourth quarter, including the Corporation's sale of its interest in New Skies, N.V. and Intelsat, Ltd. As previously disclosed, in June 2004, New Skies Satellites, N.V. entered into a definitive agreement for the sale of the company. In August 2004, Intelsat, Ltd. entered into a definitive agreement for the sale of the company. If these transactions are consummated at the current transaction values, we would recognize an after-tax gain of approximately $70 million ($0.15 per share) and receive after-tax proceeds of about $800 million. The transactions are subject to regulatory approvals and other closing conditions, and are expected to close in the fourth quarter of 2004 or early 2005.

Year-to-Date Results

Net sales for the nine months ended September 30, 2004 were $25.6 billion, a 12% increase over the $22.8 billion recorded in the comparable 2003 period.

Net earnings for the nine months ended September 30, 2004 were $894 million ($2.00 per share) compared to $709 million ($1.57 per share) in 2003, a 26% increase. The 2003 results included charges (reported in Unallocated Corporate Expense, net) of $127 million ($83 million after-tax or $0.18 per share) related to the early repayment of debt in the third quarter and $41 million ($27 million after-tax or $0.06 per share) for the Corporation's exit from the commercial mail sorting business in the second quarter.

Cash Flow and Leverage

Cash provided by operating activities for the quarter and nine months ended September 30, 2004 was $1.0 billion and $2.8 billion. Capital expenditures for the quarter and nine months ended September 30, 2004 were approximately $135 million and $395 million. The Corporation repurchased 3.6 million of its common shares for approximately $190 million during the quarter and 9.3 million of its common shares for approximately $465 million year-to- date.

The ratio of total debt-to-capitalization was 46% at the end of the third quarter, an improvement from 48% at December 31, 2003. At September 30, 2004, the Corporation's cash and cash equivalents balance was $2.8 billion and its short-term investments (those with original maturities greater than 90 days) were $87 million.

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 net." (See our 2003 Form 10-K for a description of "Unallocated corporate expense, 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)                         3rd Quarter         Year-to-Date
                                      2004      2003       2004       2003
   Net sales
    Aeronautics                     $ 2,765   $ 2,675    $ 8,780    $ 7,168
    Electronic Systems                2,278     2,234      6,616      6,389
    Space Systems                     1,434     1,498      4,559      4,570
    Integrated Systems & Solutions      966       922      2,836      2,504
    Information & Technology
     Services                           991       743      2,760      2,202
       Operating segments             8,434     8,072     25,551     22,833

    Other                                 4         6         10         13

    Total net sales                 $ 8,438   $ 8,078    $25,561    $22,846


  Operating profit
    Aeronautics                     $   225   $   183    $   670    $   490
    Electronic Systems                  222       223        644        617
    Space Systems                       113        95        362        300
    Integrated Systems & Solutions       90        75        251        214
    Information & Technology
     Services                            73        51        204        150
       Segment operating profit         723       627      2,131      1,771


    Unallocated corporate
     expense net:
        FAS/CAS pension adjustment     (148)      (80)      (446)      (220)
        Other                           (14)     (119)       (44)      (148)

  Total operating profit            $   561   $   428    $ 1,641    $ 1,403


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

  Aeronautics
  ($ millions)
                                        3rd Quarter          Year-to-Date
                                       2004      2003       2004      2003
      Net sales                      $2,765    $2,675     $8,780    $7,168
      Operating profit                 $225      $183       $670      $490


Net sales for Aeronautics increased by 3% for the quarter and 22% for the nine months ended September 30, 2004 from the 2003 periods. In the quarter, most of the sales growth was attributable to a $70 million increase in Air Mobility as a result of higher volume on C-5 programs. In Combat Aircraft, increased sales due to higher volume on the F-35 and F/A-22 programs offset lower sales volume on F-16 programs. For the nine-month period, a $1.5 billion increase in Combat Aircraft due to higher volume on the F-35, F-16 and F/A-22 programs accounted for the increase in sales. The remaining increase in sales was due to increases in Air Mobility and other programs, primarily as a result of higher C-5 volume.

Segment operating profit increased by 23% for the quarter and 37% for the nine months ended September 30, 2004 from the 2003 periods. In the quarter, Combat Aircraft operating profit increased $30 million primarily as a result of higher volume and improved performance on the F/A-22 program, which more than offset a decline in sales volume on F-16 programs. The remaining increase in operating profit for the quarter was primarily due to profits recognized on the two C-130J aircraft delivered this quarter. For the nine- month period, Combat Aircraft operating profit increased $110 million primarily as a result of higher sales volume on the programs discussed above and performance on F/A-22 and other combat aircraft programs. The remaining increase was primarily attributable to profits recognized on C-130J deliveries in 2004. The Corporation began recognizing profits on C-130J deliveries in 2004 (approximately $50 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)
                                        3rd Quarter          Year-to-Date
                                       2004      2003       2004      2003
      Net sales                      $2,278    $2,234     $6,616    $6,389
      Operating profit                 $222      $223       $644      $617


Net sales for Electronic Systems increased 2% for the quarter and 4% for the nine months ended September 30, 2004 from the 2003 periods. For both the quarter and the nine-month periods, higher volume in Maritime Systems & Sensors (MS2) more than offset slight declines in Missiles & Fire Control (M&FC) and Platform, Training & Transportation Solutions (PT&TS). In MS2, higher volume on surface systems programs accounted for the increased sales. M&FC sales declined primarily due to lower volume on air defense programs.

Segment operating profit decreased nominally for the quarter and increased by 4% for the nine months ended September 30, 2004, compared to the 2003 periods. In the quarter, decreases in operating profit on air defense programs at M&FC and on simulation and training programs at PT&TS offset improved performance on radar and marine programs at MS2. For the year, improved performance on radar programs at MS2 and on fire control programs at M&FC more than offset a decrease in operating profit on simulation and training programs at PT&TS. In both periods, the decrease in operating profit at PT&TS was due to the recording of a $25 million loss provision on certain international simulation and training contracts.

  Space Systems
  ($ millions)
                                        3rd Quarter          Year-to-Date
                                       2004      2003       2004      2003
      Net sales                      $1,434    $1,498     $4,559    $4,570
      Operating profit                 $113       $95       $362      $300


Net sales for Space Systems decreased by 4% for the quarter and nominally for the nine months ended September 30, 2004 from the 2003 periods. For the quarter, sales declined in both Launch Services and Satellites. In Launch Services, a decline in activities on the Titan launch vehicle program was partially offset by an additional Proton launch in 2004. The decrease in Satellites was due to one less commercial satellite delivery, which more than offset higher volume on government satellite programs.

For the nine months ended September 30, 2004, sales decreases in Satellites more than offset increases in Strategic and Defensive Missile Systems (S&DMS) and Launch Services. The decrease in Satellites was due to one less commercial satellite delivery in 2004, which was partially offset by increased volume on government satellite programs. In S&DMS the increase was primarily attributable to fleet ballistic missile programs. The higher volume in Launch Services was due to increases in both Atlas launches (five in 2004 compared to three in 2003) and Proton launches (three in 2004 compared to two in 2003) that more than offset a decline in the Titan launch vehicle program.

Segment operating profit increased by 19% for the quarter and 21% for the nine months ended September 30, 2004, when compared to the 2003 periods. For the quarter, Launch Services operating profit increased due to improved profitability and higher volume in both the Atlas and Proton programs, which more than offset a decline in activities on the Titan launch vehicle program. Satellites' operating profit decreased due to the absence of a commercial satellite delivery, which was partially offset by improved performance on government satellite programs. In the third quarter of 2003, government satellites operating profit included a $30 million charge related to a handling incident on a NASA satellite program.

For the nine-month period, Launch Services' operating profit increased primarily due to U.S. Government support of the Atlas program and the benefit resulting from the first quarter termination of a launch vehicle contract by a commercial customer, 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 and a decline in commercial satellite deliveries.

  Integrated Systems & Solutions
  ($ millions)
                                        3rd Quarter          Year-to-Date
                                       2004      2003       2004      2003
      Net sales                        $966      $922     $2,836    $2,504
      Operating profit                  $90       $75       $251      $214


Net sales for Integrated Systems & Solutions increased by 5% for the quarter and 13% for the nine months ended September 30, 2004 from the 2003 periods. For both the quarter and nine-month periods, a higher volume of intelligence, defense and information assurance activities resulted in increased sales.

Segment operating profit increased by 20% for the quarter and 17% for the nine months ended September 30, 2004 from the comparable 2003 periods. The increases in operating profit for both the quarter and year were primarily attributable to higher volume and performance improvements on the activities described above.

  Information & Technology Services
  ($ millions)
                                        3rd Quarter          Year-to-Date
                                       2004      2003       2004      2003
      Net sales                        $991      $743     $2,760    $2,202
      Operating profit                  $73       $51       $204      $150


Net sales for Information & Technology Services increased by 33% for the quarter and 25% for the nine months ended September 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 Information Technology. Information Technology's sales improved due to the net impact of an acquisition and a divestiture, as well as organic growth. The remaining increase in sales was primarily attributable to higher volume in Defense Services in both periods. NASA sales declined in both periods.

Segment operating profit increased by 43% for the quarter and 36% for the nine months ended September 30, 2004 from the 2003 periods. In both periods the operating profit increased mainly due to improvements in Information Technology and Defense Services.

  THIRD QUARTER 2004 HIGHLIGHTS

    * Received a contract from the U.S. Army to develop the Aerial Common
      Sensor (ACS), a next generation airborne intelligence, surveillance,
      reconnaissance and target identification system.

    * Awarded one of two contracts for the Pre-System Development and
      Demonstration phase of the Airborne and Maritime/Fixed Station Joint
      Tactical Radio System (AMF JTRS).

    * Received a 10-year contract from the U.S. Strategic Command to develop
      the new architecture and functions for the Integrated Strategic
      Planning and Analysis Network (ISPAN), a network-centric mission
      planning and execution system.

    * The U.S. Army announced that Lockheed Martin will receive 50 percent
      of the work share on the Army's Warfighter Information Network -
      Tactical (WIN-T) program.

    * Awarded a four-year contract by the Department of Defense to provide
      enterprise-wide information technology support to U.S. Central Command
      in the U.S. and overseas.

    * Selected to lead the managed network services contract for the U.S.
      Postal Service.  Program is called Universal Computing Connectivity
      (UCC).

    * Received a contract from the U.S. Navy to build the Mobile User
      Objective System (MUOS), a next-generation narrowband tactical
      satellite communications system.

    * Awarded a contract to design and develop the Medium Extended Air
      Defense System (MEADS) as part of a three-nation industrial team.

    * Delivered the first two Production Lot 2 F/A-22 aircraft.  Eight F/A-
      22s delivered year-to-date (six from Lot 1 and two from Lot 2).  Also
      delivered 24 F-16s (61 year-to-date) and 2 C-130Js (8 year-to-date).

    * Began assembly of the forward fuselage and wings for the first F-35
      Joint Strike Fighter aircraft, leading to its initial flight in 2006.

    * The U.S. Navy awarded Lockheed Martin a contract to perform additional
      risk reduction activities associated with the Presidential Helicopter
      Program; Team US101, led by Lockheed Martin, has identified more than
      200 U.S. suppliers from 41 states to support the "Marine One" program.


  Web site: http://www.lockheedmartin.com/

Conference call: Lockheed Martin will webcast the earnings conference call (listen-only mode) at 11 a.m. E.T. on October 26, 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; the results of the Corporation's announced debt tender offers; 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 or changes in accounting or tax rules or pronouncements; the future impact of acquisitions or divestitures, joint ventures or teaming arrangements; the outcome of legal proceedings and other contingencies (including, lawsuits, government investigations or audits, 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 Corporation's SEC filings, including the "Management's Discussion and Analysis of Results of Operations and Financial Condition," "Risk Factors and Forward-Looking Statements" and "Legal Proceedings" sections of the Corporation's annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained at the Corporation's website: http://www.lockheedmartin.com/.

All information in this release is as of October 25, 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 Statement of Earnings
                        Preliminary and Unaudited
           (In millions, except per share data and percentages)

                                        QUARTER ENDED     YEAR TO DATE
                                        SEPTEMBER 30,     SEPTEMBER 30,

                                        2004     2003     2004     2003


  Net Sales                           $ 8,438  $ 8,078  $25,561  $22,846

  Costs and Expenses                    7,921    7,540   24,043   21,426

  Earnings from Operations                517      538    1,518    1,420

  Other Income and (Expenses), net         44     (110)     123      (17)

  Operating Profit [EBIT]                 561      428    1,641    1,403

  Interest Expense                        109      117      323      376

  Earnings before Income Taxes            452      311    1,318    1,027

  Income Tax Expense                      145       94      424      318

  Net Earnings                        $   307  $   217  $   894  $   709

  Effective Tax Rate                    32.2%    30.2%    32.2%    31.0%

  Earnings per Common Share:
          Basic                       $  0.69  $  0.49  $  2.02  $  1.59
          Diluted                     $  0.69  $  0.48  $  2.00  $  1.57


  Average Number of Shares
   Outstanding:
          Basic                         441.4    446.6    443.2    446.9
          Diluted                       445.9    450.4    446.8    450.5



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



                            QUARTER ENDED              YEAR TO DATE
                             SEPTEMBER 30,             SEPTEMBER 30,
                         2004      2003  % Change   2004     2003  % Change

  Net sales:

    Aeronautics         $2,765    $2,675     3%   $ 8,780  $ 7,168    22%
    Electronic Systems   2,278     2,234     2%     6,616    6,389     4%
    Space Systems        1,434     1,498    (4%)    4,559    4,570      -
    Integrated Systems
     & Solutions           966       922     5%     2,836    2,504    13%
    Information &
     Technology
     Services              991       743    33%     2,760    2,202    25%

       Segment net
        sales            8,434     8,072     4%    25,551   22,833    12%

    Other                    4         6               10       13

        Total net
         sales          $8,438    $8,078     4%   $25,561  $22,846    12%


  Operating profit:

    Aeronautics         $  225    $  183    23%   $   670  $   490    37%
    Electronic Systems     222       223      -       644      617     4%
    Space Systems          113        95    19%       362      300    21%
    Integrated Systems
     & Solutions            90        75    20%       251      214    17%
    Information &
     Technology
     Services               73        51    43%       204      150    36%

       Segment operating
        profit             723       627    15%     2,131    1,771    20%


        Unallocated
         corporate
         expense, Net(1)  (162)     (199)            (490)    (368)


        Total operating
         profit         $  561    $  428    31%    $1,641   $1,403    17%



  Margins:
    Segments:
      Aeronautics         8.1%      6.8%             7.6%     6.8%
      Electronic Systems  9.7%     10.0%             9.7%     9.7%
      Space Systems       7.9%      6.3%             7.9%     6.6%
      Integrated
       Systems &
       Solutions          9.3%      8.1%             8.9%     8.5%
      Information &
       Technology
       Services           7.4%      6.9%             7.4%     6.8%

    Total Segments        8.6%      7.8%             8.3%     7.8%

    Total Consolidated    6.6%      5.3%             6.4%     6.1%


  (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
                                           SEPTEMBER 30,     SEPTEMBER 30,

                                           2004     2003     2004     2003
  Summary of unallocated corporate
   expense, net
    FAS/CAS pension adjustment           $ (148)  $ (80)   $ (446)  $ (220)
    Other(1)                                (14)    (119)     (44)    (148)
       Unallocated corporate
        expense, net                     $ (162)  $ (199)  $ (490)  $ (368)


  (1) The quarter and the year-to-date periods of 2003 include a $127
      million charge for the early retirement of debt.  The year-to-date
      period includes a $41 million charge from exiting the commercial mail
      sorting business in the second quarter of 2003.



  FAS/CAS pension adjustment
    FAS 87 expense                       $ (222)  $ (128)  $ (665)  $ (353)
    Less: CAS costs                         (74)     (48)    (219)    (133)
       FAS/CAS pension adjustment
        - expense                        $ (148)  $  (80)  $ (446)  $ (220)



  Depreciation and amortization of
   property, plant and equipment
  Aeronautics                            $   24      $23   $   70   $   64
  Electronic Systems                         41       43      121      117
  Space Systems                              40       30       98       84
  Integrated Systems & Solutions              6        4       22       20
  Information &Technology Services           11       10       36       31
      Segments                              122      110      347      316

  Unallocated corporate expense, net         11       10       31       28

        Total depreciation and
         amortization                    $  133   $  120   $  378   $  344



  Amortization of purchased intangibles
  Aeronautics                            $   12   $   13   $   38   $   38
  Electronic Systems                         12       11       35       35
  Space Systems                               2        2        6        6
  Integrated Systems & Solutions              3        3       11       10
  Information &Technology Services            4        2       11        5
       Segments                              33       31      101       94

  Unallocated corporate expense, net          3        -        6        -

        Total amortization of
         purchased intangibles           $   36   $   31   $  107   $   94



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

                                           SEPTEMBER 30,      DECEMBER 31,
                                                    2004              2003
  Assets
  Cash and cash equivalents                    $   2,823         $   1,010
  Short-term investments                              87               240
  Accounts receivable                              3,845             4,039
  Inventories                                      1,795             2,348
  Other current assets                             1,702             1,764
     Total current assets                         10,252             9,401
  Property, plant and equipment, net               3,372             3,489
  Investments in equity securities                 1,108             1,060
  Goodwill                                         7,879             7,879
  Purchased intangibles, net                         700               807
  Prepaid pension asset                            1,076             1,213
  Other noncurrent assets                          2,257             2,326
     Total assets                              $  26,644         $  26,175

  Liabilities and Stockholders' Equity
  Accounts payable                             $   1,547         $   1,434
  Customer advances and amounts in
   excess of costs incurred                        4,099             4,256
  Other accrued expenses                           2,927             3,067
  Current maturities of long-term debt                 -               136
     Total current liabilities                     8,573             8,893
  Long-term debt                                   6,070             6,072
  Accrued pension liabilities                      1,228             1,100
  Post-retirement and other noncurrent
   liabilities                                     3,533             3,354
  Stockholders' equity                             7,240             6,756

     Total liabilities and
      stockholders' equity                     $  26,644         $  26,175



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

                                                   YEAR ENDED SEPTEMBER 30,

                                                      2004            2003

  Operating Activities
  Net income                                      $    894        $    709
  Adjustments to reconcile net income to
   net cash provided by operating activities:
    Depreciation and amortization of
     property, plant and equipment                     378             344
    Amortization of purchased
     intangibles                                       107              94
    Changes in operating assets and liabilities:
      Receivables                                      165              97
      Inventories                                      693              23
      Accounts payable                                 113             196
      Customer advances and amounts in excess
       of costs incurred                              (157)           (540)
      Other                                            642             751

  Net cash provided by operating activities          2,835           1,674

  Investing Activities
  Expenditures for property, plant and equipment      (393)           (367)
  Sale (purchase) of short-term investments            153            (247)
  Acquisitions of businesses / investments
   in affiliated companies                               -            (219)
  Other                                                 40              18

  Net cash used for investing
   activities                                         (200)           (815)

  Financing Activities
  Repayments related to long-term debt                (137)         (2,185)
  Issuances of long-term debt                            -           1,000
  Long-term debt issuance and repayment costs            -            (175)
  Issuances of common stock                             74              40
  Repurchases of common stock                         (465)           (279)
  Common stock dividends                              (294)           (163)

  Net cash used for financing activities              (822)         (1,762)

  Net increase (decrease) in cash and
   cash equivalents                                  1,813            (903)
  Cash and cash equivalents at
   beginning of period                               1,010           2,738

  Cash and cash equivalents at end of period      $  2,823        $  1,835



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

                                                         Accumulated
                                                            Other   Total
                     Additional         Unearned Unearned  Compre-  Stock-
              Common  Paid-In  Retained  Compen-   ESOP    hensive  holders'
              Stock   Capital  Earnings  sation   Shares   (Loss)   Equity

  Balance at
   January 1,
   2004         $446   $2,477    $5,054            $(17)  $(1,204)  $6,756

  Net earnings                      894                                894

  Common stock
   dividends                       (294)                              (294)

  Repurchases
   of common
   stock          (9)    (456)                                        (465)

  Stock-based
   awards and
   ESOP activity,
   net             3      344             $(23)      17                341

  Other
   comprehensive
   income                                                       8        8


  Balance at
   September
   30, 2004     $440   $2,365    $5,654   $(23)    $  -   $(1,196)  $7,240



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

                                           SEPTEMBER 30,       DECEMBER 31,
                                                    2004              2003
  Backlog
  Aeronautics                                    $32,726           $37,580
  Electronic Systems                              18,127            17,339
  Space Systems                                   14,949            12,813
  Integrated Systems & Solutions                   4,880             4,350
  Information & Technology Services                4,647             4,817
    Total                                        $75,329           $76,899



                   QUARTER ENDED SEPTEMBER 30,    YEAR TO DATE SEPTEMBER 30,

                          2004     2003                 2004     2003
  Deliveries(1)
  F-16(2)                   24       25                   61       40
  C-130J                     2        2                    8        9

  Launches
  Atlas                      1        1                    5        3
  Proton                     1        -                    3        2
  Titan IV                   -        1                    1        2


  (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