Releases

LOCKHEED MARTIN ANNOUNCES FIRST QUARTER 2005 RESULTS
* FIRST QUARTER NET EARNINGS UP 27% TO $369 MILLION
* FIRST QUARTER EARNINGS PER SHARE UP 28% TO $0.83
* FIRST QUARTER 2005 NET SALES GROW TO $8.5 BILLION
* GENERATES $1.5 BILLION IN CASH FROM OPERATIONS
* INCREASES OUTLOOK FOR 2005 SALES AND EPS
PRNewswire-FirstCall
BETHESDA, Md.

Lockheed Martin Corporation today reported first quarter 2005 net earnings of $369 million ($0.83 per diluted share) compared to $291 million ($0.65 per diluted share) in 2004. Net sales were $8.5 billion, a 2% increase over first quarter 2004 sales of $8.3 billion. Cash provided by operating activities for the first quarter of 2005 was $1.5 billion.

Lockheed Martin announced an increase to its 2005 outlook for sales and earnings per share, while maintaining its outlook for cash from operations of at least $3 billion. The outlook for 2005 sales has been increased to a range of $36.5 - $38.0 billion, and the outlook for 2005 earnings per share has been increased to a range of $3.35 - $3.55.

"We are off to an excellent start for 2005," said Bob Stevens, President & CEO. "We are continuing to deliver on our focus of improving profitability, generating strong cash flow, and deploying cash to enhance shareholder value."

SUMMARY REPORTED RESULTS AND OUTLOOK

The following table presents the Corporation's first quarter results on a GAAP basis:

  REPORTED RESULTS                                          1st Quarter
  (In millions, except per share data)                    2005       2004

  Net sales                                              $8,488     $8,347

  Operating profit:
    Segment operating profit                             $  762     $  668
    Unallocated corporate (expense) income, net:
          FAS/CAS pension adjustment                       (155)      (150)
          Unusual items, net                                 17        ---
          Other                                               6         18
                                                         $  630     $  536

  Net earnings                                           $  369     $  291

  Diluted earnings per share                             $ 0.83     $ 0.65

  Cash flow from operations                              $1,548     $1,062


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.

  The Corporation has updated its outlook for 2005 as presented below:


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

  Net sales                             $36,500 - $38,000  $36,000 - $37,500

  Diluted earnings per share              $3.35 - $3.55      $3.05 - $3.30

  Cash flow from operations             At least $3,000    At least $3,000

The outlook for 2005 reflects improved operating performance primarily in the Space Systems segment, the expected accretion resulting from completing the acquisitions of The SYTEX Group, Inc. and STASYS Limited during the first quarter, the benefit of first quarter unusual items, and the removal of estimated stock option expense as a result of deferring FAS 123R adoption until January 1, 2006.

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

Sales and Net Earnings

Net sales for the quarter were $8.5 billion, a 2% increase over the $8.3 billion recorded in the comparable 2004 period.

Net earnings for the quarter ended March 31, 2005 were $369 million ($0.83 per share). The first quarter results include an after-tax gain of $31 million ($0.07 per share) for the sale of the Intelsat investment and an after-tax loss of $19 million ($0.04 per share) related to an impairment in the value of a single telecommunications satellite operated by a wholly-owned subsidiary of the Corporation. On a combined basis, these items increased first quarter 2005 net earnings by $12 million ($0.03 per share).

Net earnings for the quarter ended March 31, 2004 were $291 million ($0.65 per share).

Cash Flow and Leverage

Cash from operations for the quarter ended March 31, 2005 was $1.5 billion. Additionally, the Corporation sold its Intelsat investment for $752 million. The Corporation continued to execute its balanced cash deployment strategy during the quarter as follows:

    * Paid $410 million to acquire The SYTEX Group, Inc. and STASYS Limited
      (additional payments of approximately $110 million will be paid,
      primarily in 2006);

    * Paid cash dividends of $110 million ($0.25 per share);

    * Repurchased over 600,000 of its common shares at a cost of $35
      million; and

    * Increased its productive assets by $89 million through capital
      expenditures.

The Corporation's ratio of total debt-to-capitalization was 41% at the end of the first quarter, an improvement from 42% at December 31, 2004. At March 31, 2005, the Corporation's cash and short-term investments were $3.1 billion.

SEGMENT RESULTS

The Corporation operates in five principal business segments: Aeronautics, Electronic Systems, Space Systems, Integrated Systems & Solutions (IS&S), and Information & Technology Services (I&TS). The results of Electronics, IS&S and I&TS have been aggregated into the Systems & IT Group due to the common focus on information technology and systems integration solutions across these 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 2004 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 Systems & IT Group, Aeronautics, and Space Systems and reconciles these amounts to the Corporation's financial results as determined by GAAP.

                                                             1st Quarter
                                                            2005      2004
                                                            (In millions)
   Net sales
    Systems & IT Group:
      Electronic Systems                                  $2,257    $2,134
      Integrated Systems & Solutions                         958       907
      Information & Technology Services                      845       852
                    Systems & IT Group                     4,060     3,893

    Aeronautics                                            2,766     2,875
    Space Systems                                          1,662     1,579

    Total net sales                                       $8,488    $8,347

  Operating profit
    Systems & IT Group:
      Electronic Systems                                  $  232    $  202
      Integrated Systems & Solutions                          84        80
      Information & Technology Services                       71        60
                    Systems & IT Group                       387       342

    Aeronautics                                              222       206
    Space Systems                                            153       120
       Segment operating profit                              762       668

    Unallocated corporate (expense) income, net:
        FAS/CAS pension adjustment                          (155)     (150)
        Other                                                 23        18

  Total operating profit                                  $  630    $  536


The following discussion compares the operating results of each business segment for the quarter ended March 31, 2005 to the same period in 2004.

  Systems & IT Group
  ($ millions)

                                                             1st Quarter
                                                           2005       2004
  Net sales                                              $4,060     $3,893
  Operating profit                                       $  387     $  342

Net sales for the Systems & IT Group increased by 4% for the quarter ended March 31, 2005 compared to 2004. Sales increases in Electronic Systems and IS&S were slightly offset by a decline in I&TS.

In Electronic Systems, the increase was primarily attributable to higher sales volume in surface system programs at Maritime Systems & Sensors (MS2) and in platform integration activities at Platform Training & Transportation Solutions (PT&TS). These increases more than offset a decline in volume on air defense programs at Missiles & Fire Control (M&FC). In IS&S, the increase was primarily attributable to higher volume and performance related to intelligence, defense and information assurance activities. In I&TS, lower volume on NASA programs more than offset a double-digit increase in Information Technology sales.

Operating profit for the Systems & IT Group increased by 13% for the quarter in 2005 compared to 2004. All three businesses reported growth in operating profit during the quarter.

In Electronic Systems, the increase was due to improved performance on fire control and air defense programs at M&FC. Operating profit increases due to volume on surface systems programs at MS2 offset a slight decline in distribution technology programs at PT&TS. In IS&S, the increase was primarily attributable to a higher volume and performance related to intelligence, defense and information assurance activities. In I&TS, the increase was due to higher volume in Information Technology and improved performance in Defense Services.

  Aeronautics
  ($ millions)

                                                             1st Quarter
                                                           2005       2004
  Net sales                                              $2,766     $2,875
  Operating profit                                       $  222     $  206


Net sales for Aeronautics decreased by 4% for the quarter ended March 31, 2005 from 2004 due to a decline in Combat Aircraft, which more than offset higher volume in Air Mobility. The Combat Aircraft sales decrease of 9% was primarily due to lower volume on F-16 and other combat aircraft programs. Higher volume on the C-5 and other programs contributed to the revenue growth in Air Mobility.

Segment operating profit increased by 8% in the first quarter of 2005 compared to 2004. Operating profit was higher primarily due to the volume increases discussed above and improved performance on the C-130 and other programs in Air Mobility, which were partially offset by lower Combat Aircraft operating profit related to the reduced volume mentioned above.

  Space Systems
  ($ millions)

                                                             1st Quarter
                                                           2005       2004
  Net sales                                              $1,662     $1,579
  Operating profit                                       $  153     $  120


Net sales for Space Systems increased 5% for the quarter ended March 31, 2005 compared to 2004. The sales growth was primarily attributable to an increase in Satellites, where higher volume on government satellite programs more than offset a decline in commercial satellites. No commercial satellites were delivered this quarter as compared to one in 2004. A slight increase in Launch Services more than offset a decline in Strategic and Defensive Missile Systems. There were two Atlas launches and one Proton launch in the first quarters of both 2005 and 2004.

Space Systems' operating profit increased by 28% for the quarter ended March 31, 2005 compared to 2004. Satellites' operating profit increased due to volume and improved performance on government satellite programs, which more than offset a decline in commercial satellites due to no satellite deliveries this quarter. In Launch Services, operating profit was lower this quarter due to the benefit in 2004 resulting from the termination of a launch vehicle contract by a commercial customer, which was partially offset by a more profitable Proton launch in 2005.

  FIRST QUARTER 2005 HIGHLIGHTS

    * A team headed by Lockheed Martin was selected to develop, build and
      integrate the new Presidential helicopter.

    * Won a contract to operate the FAA's Automated Flight Services Station
      (AFSS) network that will allow streamlined flight planning operations.

    * The 76th consecutive successful flight for the Atlas family of launch
      vehicles carried the Inmarsat 4 satellite into orbit, the heaviest
      commercial communications satellite launched to date by any expendable
      vehicle.

    * Received authorization to proceed with three Atlas V missions under
      the Air Force's Evolved Expendable Launch Vehicle program.
      Additionally, a Proton vehicle was selected by a European consortium
      to launch one of its satellites in early 2006.

    * Delivered first two retrofitted External Tanks to support NASA's Space
      Shuttle return to flight.

    * Received first international orders of the combat-proven Patriot
      Advanced Capability-3 (PAC-3) Missile from the Netherlands and Japan.

    * Launched two Navy Trident II (D-5) fleet ballistic missiles, the 109th
      and 110th consecutive successful tests of submarine-launched ballistic
      missiles dating back to 1989.

    * Received a prime contract from the U.S. Department of Housing and
      Urban Development (HUD) as part of the HUD Information Technology
      Services (HITS) procurement; under the 10-year program, Lockheed
      Martin will provide direct IT services for HUD headquarters and field
      offices.

    * Awarded a contract for three Aegis Weapon Systems for installation
      aboard Arleigh Burke-class destroyers.

    * Began construction of the Navy's first Littoral Combat Ship following
      a successful production readiness review in January.

    * Delivered three F/A-22s to U.S. Air Force; four C-130Js to U.S.
      customers; and 14 F-16s to U.S. and international customers.

    * Received a firm fixed-price contract to support advanced buy for
      F/A-22 Lot 6 aircraft and associated equipment.

    * The Strategic Missile Defense Command exercised an option for the next
      two years of the Kwajalein Range Services/Reagan Test Site contract.


  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 April 26, 2005. 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 for our products and services both domestically and internationally; changes in government and customer priorities and requirements (including changes to respond to budgetary constraints and cost-cutting initiatives, terrorist threats and homeland security); the impact of continued military operations in Iraq and Afghanistan, as well as other competing budget priorities, 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; 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 or changes in accounting or tax rules, interpretations 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 government 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 2004 annual report on Form 10-K, copies of which may be obtained at the Corporation's website: http://www.lockheedmartin.com/.

It is the Corporation's policy to only update or reconfirm its earnings, sales and cash outlook by issuing a press release. The Corporation generally plans to provide a forward-looking outlook as part of its quarterly earnings release but reserves the right to provide outlook at different intervals or to revise its practice in future periods. All information in this release is as of April 25, 2005. Lockheed Martin undertakes no duty to update any forward- looking statement to reflect subsequent events, actual results or changes in the Corporation's expectations. We also disclaim any duty to comment upon or correct information that may be contained in reports published by the investment community.

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


                                               THREE MONTHS ENDED MARCH 31,

                                                    2005              2004


  Net Sales                                    $   8,488         $   8,347

  Costs of Sales                                   7,946             7,879

                                                     542               468

  Other Income and (Expenses), net                    88                68

  Operating Profit                                   630               536

  Interest Expense                                    90               108

  Earnings before Income Taxes                       540               428

  Income Tax Expense                                 171               137

  Net Earnings                                 $     369         $     291

  Effective Tax Rate                               31.7%             32.0%

  Earnings per Common Share:
          Basic                                $    0.84         $    0.66
          Diluted                              $    0.83         $    0.65


  Average Number of Shares Outstanding:
          Basic                                    441.3             444.3
          Diluted                                  446.5             447.5



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

                                                THREE MONTHS ENDED MARCH 31,

                                                 2005        2004   % Change

  Net sales:

  Systems & IT Group:
    Electronic Systems                      $   2,257   $   2,134
    Integrated Systems & Solutions                958         907
    Information & Technology Services             845         852
                  Systems & IT Group            4,060       3,893       4%

  Aeronautics                                   2,766       2,875      (4%)
  Space Systems                                 1,662       1,579       5%

        Total net sales                     $   8,488   $   8,347       2%




  Operating profit:

  Systems & IT Group:
    Electronic Systems                      $     232   $     202
    Integrated Systems & Solutions                 84          80
    Information & Technology Services              71          60
                  Systems & IT Group              387         342      13%

  Aeronautics                                     222         206       8%
  Space Systems                                   153         120      28%

       Segment operating profit                   762         668      14%

        Unallocated corporate expense,
         net (1)                                 (132)       (132)

        Total operating profit               $    630    $    536      18%



  Segment margins:

  Systems & IT Group:
    Electronic Systems                          10.3%     9.5%
    Integrated Systems & Solutions               8.8%     8.8%
    Information & Technology Services            8.4%     7.0%
                  Systems & IT Group             9.5%     8.8%

  Aeronautics                                    8.0%     7.2%
  Space Systems                                  9.2%     7.6%

    Total Segments                               9.0%     8.0%


  (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)


                                                THREE MONTHS ENDED MARCH 31,

                                                       2005           2004
  Summary of unallocated corporate expense, net
    FAS/CAS pension adjustment                     $   (155)      $   (150)
    Unusual items, net                                   17            -
    Other, net                                            6             18
      Unallocated corporate expense, net           $   (132)      $   (132)


  FAS/CAS pension adjustment
    FAS 87 expense                                 $   (279)      $   (223)
    Less: CAS costs                                    (124)           (73)
      FAS/CAS pension adjustment - expense         $   (155)      $   (150)


                                         THREE MONTHS ENDED MARCH 31, 2005

                                      Operating                   Earnings
                                       profit     Net earnings   (loss) per
                                       (loss)        (loss)         share

  Discrete Items
  Gain on Intelsat sale               $   47         $   31        $ 0.07
  LMI impairment                         (30)           (19)        (0.04)
                                      $   17         $   12        $ 0.03



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


                                                THREE MONTHS ENDED MARCH 31,

                                                        2005          2004
  Depreciation and amortization of property,
   plant and equipment
  Systems & IT Group:
    Electronic Systems                               $    41       $    39
    Integrated Systems & Solutions                         8             7
    Information & Technology Services                      3            13
                  Systems & IT Group                      52            59

  Aeronautics                                             29            23
  Space Systems                                           31            33
       Segments                                          112           115

  Unallocated corporate expense, net                      14            11

        Total depreciation and amortization          $   126       $   126


  Amortization of purchased intangibles
  Systems & IT Group:
    Electronic Systems                               $    12       $    12
    Integrated Systems & Solutions                         4             3
    Information & Technology Services                      4             4
                  Systems & IT Group                      20            19

  Aeronautics                                             12            12
  Space Systems                                            2             2
       Segments                                           34            33

  Unallocated corporate expense, net                       3             3

        Total amortization of purchased
         intangibles                                 $    37       $    36



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

                                               MARCH 31,      DECEMBER 31,
                                                    2005              2004
  Assets
  Cash and cash equivalents                    $   2,727         $   1,060
  Short-term investments                             406               396
  Accounts receivable                              4,240             4,094
  Inventories                                      1,781             1,864
  Other current assets                             1,578             1,539

     Total current assets                         10,732             8,953

  Property, plant and equipment, net               3,565             3,599
  Investments in equity securities                   124               812
  Goodwill                                         8,299             7,892
  Purchased intangibles, net                         672               672
  Prepaid pension asset                              966             1,030
  Other noncurrent assets                          2,520             2,596

     Total assets                              $  26,878         $  25,554

  Liabilities and Stockholders' Equity
  Accounts payable                             $   1,818         $   1,726
  Customer advances and amounts in excess
   of costs incurred                               4,266             4,028
  Other accrued expenses                           3,043             2,797
  Current maturities of long-term debt                15                15

     Total current liabilities                     9,142             8,566

  Long-term debt                                   5,104             5,104
  Accrued pension liabilities                      1,875             1,660
  Post-retirement and other noncurrent
   liabilities                                     3,316             3,203
  Stockholders' equity                             7,441             7,021

     Total liabilities and
      stockholders' equity                     $  26,878         $  25,554



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

                                                THREE MONTHS ENDED MARCH 31,

                                                        2005          2004

  Operating Activities
  Net earnings                                      $    369      $    291
  Adjustments to reconcile net earnings to net
   cash provided by operating activities:
    Depreciation and amortization of
     property, plant and equipment                       126           126
    Amortization of purchased intangibles                 37            36
    Changes in operating assets and liabilities
      Receivables                                        (58)           21
      Inventories                                         84           278
      Accounts payable                                    75           177
      Customer advances and amounts in excess
       of costs incurred                                 238          (132)
      Other                                              677           265

  Net cash provided by operating activities            1,548         1,062

  Investing Activities
  Expenditures for property, plant and equipment         (89)         (106)
  (Purchase) sale of short-term investments, net         (10)          240
  Acquisitions of businesses / investments in
   affiliated companies                                 (413)            -
  Divestitures and other activities                      762             -
  Other                                                    2            13

  Net cash provided by investing activities              252           147

  Financing Activities
  Common stock dividends                                (110)          (98)
  Common stock activity, net                             (23)           18
  Repayments related to long-term debt                     -           (15)

  Net cash used for financing activities                (133)          (95)

  Net increase in cash and cash equivalents            1,667         1,114
  Cash and cash equivalents at beginning of period     1,060         1,010

  Cash and cash equivalents at end of period        $  2,727      $  2,124



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


                                                       Accumulated   Total
                      Additional                          Other      Stock-
               Common   Paid-In  Retained   Unearned  Comprehensive holders'
               Stock    Capital  Earnings Compensation    Loss       Equity


  Balance at
   January 1,
   2005          $438    $2,223   $5,915      $(23)      $(1,532)    $7,021

  Net earnings                       369                                369

  Common stock
   dividends                        (110)                              (110)

  Common stock
   activity, net    3       160                  4                      167

  Other
   comprehensive
   loss                                                       (6)        (6)


  Balance at
   March 31,
   2005          $441    $2,383   $6,174      $(19)      $(1,538)    $7,441



                       LOCKHEED MARTIN CORPORATION
                              Operating Data
                        Preliminary and Unaudited
                              (In millions)


                                               MARCH 31,        DECEMBER 31,
                                                  2005              2004
  Backlog
  Systems & IT Group:
    Electronic Systems                         $  20,533         $  18,239
    Integrated Systems & Solutions                 4,342             4,586
    Information & Technology Services              4,945             4,560
                  Systems & IT Group              29,820            27,385

  Aeronautics                                     29,017            30,489
  Space Systems                                   16,393            16,112
    Total                                      $  75,230         $  73,986

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