Releases

Lockheed Martin Announces Third Quarter 2005 Results
* Third Quarter Net Earnings Up 39% to $427 Million; Year-to-Date Net Earnings Up 41% to $1.3 Billion
* Third Quarter Earnings Per Share Up 39% to $0.96; Year-to-Date Earnings Per Share Up 41% to $2.81
* Third Quarter Net Sales Up 9% to $9.2 Billion; Year-to-Date Sales Up 6% to $27.0 Billion
* Generates $893 Million in Cash From Operations in the Third Quarter; $3.1 Billion Year-to-Date and Increases Full Year 2005 Outlook
* Increases Outlook for 2005 Earnings Per Share to $3.85 - $3.95; Provides Outlook for 2006 Earnings Per Share of $4.00 - $4.25
PRNewswire-FirstCall
BETHESDA, Md.

Lockheed Martin Corporation today reported third quarter 2005 net earnings of $427 million ($0.96 per diluted share) compared to $307 million ($0.69 per diluted share) in 2004.

Net sales were $9.2 billion, a 9% increase over third quarter 2004 sales of $8.4 billion. Cash from operations for the third quarter of 2005 was $893 million.

"We have consistently driven operational performance to higher levels throughout each quarter this year, highlighted by strong growth in our net earnings," said Bob Stevens, Chairman, President and CEO. "Additionally, every business segment has contributed to the enterprise-wide focus on improving the returns on our investment base. As a result, our return on invested capital is expected to exceed 15% in 2005."

SUMMARY REPORTED RESULTS

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

    REPORTED RESULTS                  3rd Quarter           Year-to-Date
    (In millions, except            2005        2004       2005       2004
     per share data)

    Net sales                      $9,201      $8,438    $26,984    $25,561

    Operating profit
      Segment operating profit     $  856      $  723    $ 2,483    $ 2,131
      Unallocated corporate, net:
        FAS/CAS pension adjustment   (155)       (148)      (466)      (446)
        Unusual items                 ---         ---         58        ---
        Other                           5         (14)        25        (44)
                                   $  706      $  561    $ 2,100    $ 1,641

    Net earnings                   $  427      $  307    $ 1,257    $   894

    Diluted earnings per share     $ 0.96      $ 0.69    $  2.81    $  2.00

    Cash from operations           $  893      $1,039    $ 3,138    $ 2,835


  OUTLOOK

The following tables 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.

    2005 OUTLOOK                                  2005 Projections
    (In millions, except per           Current Update          July 2005
     share data and percentages)

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

    Operating profit:
      Segment operating profit         $3,350 - $3,400      $3,300 - $3,400
      Unallocated corporate
       expense, net:
        FAS/CAS pension adjustment      approx. (630)        approx. (630)
        Unusual items                        143                   58
        Other                              12 - 37             (8) - 17
                                       $2,875 - $2,950      $2,725 - $2,825

    Diluted earnings per share          $3.85 - $3.95        $3.60 - $3.75
    Cash from operations                  >/= $3,200       At least $3,000
    Return on invested capital (ROIC)*    >/= 15.0%             > 14.0%

  * See "Non-GAAP Performance Measures" for ROIC definition and calculation.


The increase in projected 2005 diluted earnings per share was primarily driven by an unusual gain of $0.12 per share from the sale of approximately 16 million shares of Inmarsat stock. This stock sale was consummated in October, and the gain will be reflected in the Corporation's fourth quarter results.

    2006 OUTLOOK
    (In millions, except per
     share data and percentages)                     2006 Projection

    Net sales                                       $38,000 - $39,500

    Operating profit:
      Segment operating profit                       $3,500 - $3,650
      Unallocated corporate expense, net:
        FAS/CAS pension adjustment                    approx. (450)
        Unusual items                                      - -
        Stock compensation expense                    approx. (100)
        Other                                            25 - 50
                                                     $2,975 - $3,150

    Diluted earnings per share                        $4.00 - $4.25
    Cash from operations                                >/= $3,200
    Return on invested capital (ROIC)*                   > 15.0%

  * See "Non-GAAP Performance Measures" for ROIC definition and calculation.


The outlook for 2006 operating profit and earnings per share assumes that the Corporation's 2006 non-cash FAS/CAS pension adjustment will be calculated using a discount rate of 5.5%, and the actual return on plan assets in 2005 will be 5.5%. The 2006 non-cash FAS/CAS pension adjustment will not be finalized until year-end, consistent with the Corporation's pension plan measurement date. The Corporation will update its 2006 outlook, as necessary, when it announces 2005 year-end financial results.

The projected 2006 operating profit includes estimated stock option expense as a result of the Corporation adopting FAS 123R "Share-Based Payment" prospectively on January 1, 2006. The projected 2006 stock compensation expense includes a combination of stock options and grants of other stock- based incentive awards.

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.

YEAR-TO-DATE RESULTS

Net sales for the nine months ended September 30, 2005 were $27.0 billion, a 6% increase over the $25.6 billion recorded in the comparable 2004 period.

Net earnings for the nine months ended September 30, 2005 were $1.3 billion ($2.81 per share) compared to $894 million ($2.00 per share) in 2004. The 2005 results include the effects of three previously disclosed unusual items: an after-tax gain of $31 million ($0.07 per share) recognized in the first quarter from the sale of the Corporation's Intelsat investment, an after-tax gain of $27 million ($0.06 per share) recognized in the second quarter related to the Corporation's investment in Inmarsat, and an after-tax loss of $19 million ($0.04 per share) recognized in the first quarter related to an impairment in the value of a telecommunications satellite operated by a subsidiary. On a combined basis, these items increased 2005 net earnings by $39 million ($0.09 per share). No unusual items were recognized in the nine months ended September 30, 2004.

CASH FLOW AND LEVERAGE

Cash from operations for the quarter and nine months ended September 30, 2005 was $893 million and $3.1 billion. The Corporation continued to execute its balanced cash deployment strategy during the quarter and nine months ended September 30, 2005 as follows:

    * Repurchased 9.3 million of its common shares at a cost of $578 million
      in the quarter and 14.9 million of its common shares at a cost of $933
      million during the nine month period;

    * Paid cash dividends of $110 million in the quarter and $332 million
      for the nine month period;

    * Made a discretionary prepayment of $450 million in the second quarter
      to pre-fund the majority of the anticipated 2006 funding requirements
      for the Corporation's pension plan trust;

    * Paid $410 million in the first quarter to acquire The SYTEX Group,
      Inc. and STASYS Limited;

    * Made capital expenditures of $154 million in the quarter and $362
      million during the nine month period; and

    * Retired $37 million of debt in advance of its maturity in the second
      quarter.

In September, the Corporation's Board of Directors authorized the repurchase of up to an additional 45 million shares of its common stock, bringing the total shares authorized for repurchase to 88 million under the program. Through September 30, 2005, the Corporation has repurchased 41 million shares of its common stock under the program. The Board of Directors also authorized a 20% increase in the quarterly dividend from $0.25 to $0.30, effective for dividends payable on December 30, 2005.

In October, the Corporation paid approximately $150 million to acquire INSYS Group Limited and Coherent Technologies, Inc. The INSYS acquisition expands the Corporation's commitment in the U.K. and both acquisitions align with the Corporation's strategy of acquiring companies that supplement our competencies, offer access to new customers and provide appropriate financial returns to our shareholders.

The Corporation's ratio of debt-to-total capitalization was 40% at the end of the third quarter compared to 42% at December 31, 2004. At September 30, 2005, the Corporation's cash and short-term investments were $3.6 billion.

SEGMENT RESULTS

The Corporation operates in five principal business segments: Electronic Systems; Integrated Systems & Solutions (IS&S); Information & Technology Services (I&TS); Aeronautics; and Space Systems. The results of Electronic Systems, IS&S and I&TS have been aggregated and reported as the Systems & IT Group due to the common focus on information technology and systems integration and engineering 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 consolidated financial results.

   ($ millions)                       3rd Quarter          Year-to-Date
                                     2005      2004       2005       2004
   Net sales
    Systems & IT Group
      Electronic Systems            $2,493    $2,279    $ 7,490    $ 6,619
      Integrated Systems &
       Solutions                     1,051       966      3,061      2,837
      Information & Technology
       Services                        989       991      2,832      2,761
           Systems & IT Group        4,533     4,236     13,383     12,217

    Aeronautics                      2,987     2,767      8,632      8,783
    Space Systems                    1,681     1,435      4,969      4,561

    Total net sales                 $9,201    $8,438    $26,984    $25,561

   Operating profit
    Systems & IT Group
      Electronic Systems            $  264    $  222    $   791    $   644
      Integrated Systems &
       Solutions                        92        90        269        251
      Information & Technology
       Services                         93        73        250        204
           Systems & IT Group          449       385      1,310      1,099

    Aeronautics                        253       225        720        670
    Space Systems                      154       113        453        362
       Segment operating profit        856       723      2,483      2,131

    Unallocated corporate, net:       (150)     (162)      (383)      (490)

   Total operating profit           $  706    $  561    $ 2,100    $ 1,641


The following discussion compares the operating results for the quarter and nine months ended September 30, 2005 to the same periods in 2004.

  Systems & IT Group
  ($ millions, except percentages)

                                     3rd Quarter            Year-to-Date
                                   2005       2004        2005        2004
    Net sales                    $4,533     $4,236     $13,383     $12,217
    Operating profit               $449       $385      $1,310      $1,099
    Margin                         9.9%       9.1%        9.8%        9.0%


Net sales for the Systems & IT Group increased by 7% for the quarter and 10% for the nine months ended September 30, 2005 from the 2004 periods. For the quarter, sales increased at Electronic Systems and Integrated Systems & Solutions and were comparable between periods at Information & Technology Services. Each of the business segments in the group reported sales growth during the nine month period.

In Electronic Systems, for both the quarter and year-to-date periods, the increases in sales were primarily attributable to higher sales volume in tactical and surface system programs at Maritime Systems & Sensors (MS2); in platform integration activities at Platform Training & Transportation Solutions (PT&TS); and in air defense and fire control programs at Missiles & Fire Control (M&FC). In IS&S, for both the quarter and year-to-date periods, the increases in sales were primarily attributable to higher volume and performance related to intelligence, defense and information assurance activities. For the quarter, I&TS' sales were comparable to the prior period as higher volume in Information Technology was offset by decreased volume on NASA and Defense programs. For the nine month period, the increase in I&TS' sales was primarily attributable to higher volume in Information Technology, which offset declines in NASA and Defense programs.

Operating profit for the Systems & IT Group increased by 17% for the quarter and 19% for the nine months ended September 30, 2005 compared to the 2004 periods. Each of the business segments in the group reported growth in operating profit during the three and nine month periods.

In Electronic Systems, for the quarter, the increase was primarily due to improved performance on simulation and training systems activities at PT&TS; radar and surface systems programs at MS2; and volume on air defense programs at M&FC. For the nine month period, the increase in Electronic Systems operating profit was mainly due to tactical missile program activities and improved performance on fire control and air defense programs at M&FC, improved performance on simulation and training programs at PT&TS and volume on surface systems programs at MS2. In IS&S, for both the quarter and year- to-date periods, the increases were primarily attributable to higher volume and performance related to intelligence, defense and information assurance activities. In I&TS, for both the quarter and year-to-date periods, the increases were due to higher volume and improved performance in Information Technology.

  Aeronautics
  ($ millions, except percentages)

                                    3rd Quarter            Year-to-Date
                                  2005       2004        2005        2004
    Net sales                   $2,987     $2,767      $8,632      $8,783
    Operating profit              $253       $225        $720        $670
    Margin                        8.5%       8.1%        8.3%        7.6%


Net sales for Aeronautics increased by 8% for the quarter and decreased by 2% for the nine months ended September 30, 2005 from the 2004 periods. The sales increase in the quarter is primarily due to growth of $215 million in Air Mobility as a result of increased C-130J deliveries and volume on other Air Mobility programs. For the nine month period, sales decreased by $150 million due to anticipated declines in Combat Aircraft, which more than offset growth in Air Mobility. Combat Aircraft sales decreased by $490 million for the nine month period primarily due to declines in F-16 volume, which more than offset higher F/A-22 and F-35 volume. The decrease in Combat Aircraft was partially offset by additional C-130J deliveries and higher volume on other Air Mobility programs, which contributed to sales growth in Air Mobility during the nine month period.

Segment operating profit increased by 12% for the quarter and 7% for the nine months ended September 30, 2005 from the 2004 periods. Air Mobility operating profit increased for the quarter and year-to-date periods mainly due to increased deliveries and improved performance on the C-130J program in 2005. In each period, Combat Aircraft operating profit declined due to decreased F-16 deliveries. For the nine months, reduced earnings on the F-35 development program were offset by increased volume and improved performance on F/A-22 and other Combat Aircraft programs.

  Space Systems
  ($ millions, except percentages)

                                    3rd Quarter            Year-to-Date
                                  2005       2004        2005        2004
    Net sales                   $1,681     $1,435      $4,969      $4,561
    Operating profit              $154       $113        $453        $362
    Margin                        9.2%       7.9%        9.1%        7.9%


Net sales for Space Systems increased by 17% for the quarter and by 9% for the nine months ended September 30, 2005 from the 2004 periods. In both periods, sales growth in Satellites and Strategic & Defensive Missile Systems (S&DMS) offset declines in Launch Services. The increases in Satellites were due to higher volume on government satellite programs that more than offset declines in commercial satellite activities. There were no commercial satellite deliveries in 2005. There were no commercial satellite deliveries in the third quarter of 2004 and two deliveries in the nine months ended September 30, 2004. The increases in S&DMS were attributable to the fleet ballistic missile and missile defense programs. In Launch Services, the decrease in the quarter was primarily attributable to lower volume on both the Titan program and NASA's external tank program. During the nine month period, the decrease in Launch Services' sales was mainly due to having three Atlas launches in 2005 compared to five launches in the comparable 2004 period.

Segment operating profit increased by 36% for the quarter and 25% for the nine months ended September 30, 2005, when compared to the 2004 periods. In both periods, operating profit increased in both Satellites and Launch Services. In Satellites, higher volume and improved performance on government satellite programs more than offset declines in commercial satellites. In Launch Services, the increases were attributable to improved performance on the Atlas and Proton launch vehicle programs.

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 25, 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 Department of Defense reviews, Congressional actions, budgetary constraints, cost-cutting initiatives, terrorist threats and homeland security); the impact of continued military operations in Iraq and Afghanistan and spending for disaster relief on funding for existing defense programs; the award or termination of contracts; return on pension plan assets, interest and discount rates and other changes that may impact pension plan assumptions; 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; charges from any future impairment reviews that may result in the recognition of losses, and a reduction in the book value of 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 the Corporation's 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 and the Corporation's 2005 first and second quarter Form 10-Q's, 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 October 24, 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 investment analysts or others.

NON-GAAP PERFORMANCE MEASURES

The Corporation defines return on invested capital (ROIC) as net earnings plus after-tax interest expense divided by average invested capital (stockholders' equity plus debt). The Corporation believes that reporting ROIC provides investors with greater visibility into how effectively Lockheed Martin uses the capital invested in its operations. The Corporation uses ROIC to evaluate multi-year investment decisions and as a long-term performance measure, and also plans to use ROIC as a factor in evaluating management performance for annual incentive compensation purposes in 2005. ROIC is not a measure of financial performance under generally accepted accounting principles in the U.S., and may not be defined and calculated by other companies in the same manner. ROIC should not be considered in isolation or as an alternative to net earnings as an indicator of performance. The Corporation calculates ROIC as follows:

  (In millions,
  except percentages)          2006 Outlook     2005 Outlook   2004 Actual

  Net Earnings                                                   $  1,266
  Interest Expense multiplied     Combined         Combined           276
   (by 65%) (1)
  Return                         > $ 2,020    > / = $ 1,965      $  1,542

  Average debt (2, 4)                                               5,932
  Average equity (3, 4)           Combined         Combined         7,015

  Average Invested Capital      < $ 13,465   < / = $ 13,100      $ 12,947

  Return on invested capital       > 15.0%      > / = 15.0%         11.9%

  (1) Represents after-tax interest expense utilizing the federal statutory
      rate of 35%.
  (2) Debt consists of long-term debt, including current maturities, and
      short-term borrowings (if any).
  (3) Equity includes non-cash adjustments for other comprehensive losses,
      primarily for the additional minimum pension liability.
  (4) Yearly averages are calculated using balances at the start of the year
      and at the end of each quarter.


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


                                     THREE MONTHS ENDED  NINE MONTHS ENDED
                                        SEPTEMBER 30,       SEPTEMBER 30,

                                        2005     2004       2005     2004

  Net sales                           $ 9,201  $ 8,438    $26,984  $25,561

  Cost of sales                         8,585    7,921     25,168   24,043

                                          616      517      1,816    1,518

  Other income and expenses, net           90       44        284      123

  Operating profit                        706      561      2,100    1,641

  Interest expense                         93      109        277      323

  Earnings before income taxes            613      452      1,823    1,318

  Income tax expense                      186      145        566      424

  Net earnings                        $   427  $   307    $ 1,257  $   894

  Effective tax rate                    30.3%    32.1%      31.0%    32.2%

  Earnings per common share:
          Basic                       $  0.97  $  0.69    $  2.84  $  2.02
          Diluted                     $  0.96  $  0.69    $  2.81  $  2.00


  Average number of shares outstanding:
          Basic                          440.5   441.4      442.3    443.2
          Diluted                        445.8   445.9      447.9    446.8


  Common shares outstanding:                                433.6    443.0



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


                                THREE MONTHS ENDED      NINE MONTHS ENDED
                                   SEPTEMBER 30,           SEPTEMBER 30,

                                                %                       %
                                2005    2004  Change   2005     2004  Change

  Net sales:
  Systems & IT Group:
     Electronic Systems        $2,493  $2,279        $ 7,490  $ 6,619
     Integrated Systems &
      Solutions                 1,051     966          3,061    2,837
     Information & Technology
      Services                    989     991          2,832    2,761
          Systems & IT Group    4,533   4,236   7%    13,383   12,217   10%

    Aeronautics                 2,987   2,767   8%     8,632    8,783   (2%)
    Space Systems               1,681   1,435  17%     4,969    4,561    9%

      Total net sales          $9,201  $8,438   9%   $26,984  $25,561    6%


  Operating profit:
  Systems & IT Group:
     Electronic Systems        $  264  $  222        $   791  $   644
     Integrated Systems &
      Solutions                    92      90            269      251
     Information & Technology
      Services                     93      73            250      204
          Systems & IT Group      449     385  17%     1,310    1,099   19%

  Aeronautics                     253     225  12%       720      670    7%
  Space Systems                   154     113  36%       453      362   25%

      Segment operating profit    856     723  18%     2,483    2,131   17%

      Unallocated corporate
       expense, net (1)          (150)   (162)          (383)    (490)

      Total operating profit   $  706  $  561  26%   $ 2,100  $ 1,641   28%


  Segment margins:
  Systems & IT Group:
     Electronic Systems         10.6%    9.7%          10.6%     9.7%
     Integrated Systems &
      Solutions                  8.8%    9.3%           8.8%     8.8%
     Information & Technology
      Services                   9.4%    7.4%           8.8%     7.4%
          Systems & IT Group     9.9%    9.1%           9.8%     9.0%

  Aeronautics                    8.5%    8.1%           8.3%     7.6%
  Space Systems                  9.2%    7.9%           9.1%     7.9%

    Total segments               9.3%    8.6%           9.2%     8.3%

  (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  NINE MONTHS ENDED
                                          SEPTEMBER 30,      SEPTEMBER 30,

                                          2005     2004      2005     2004
  Summary of unallocated corporate
   expense, net
    FAS/CAS pension adjustment          $ (155)  $ (148)   $ (466)  $ (446)
    Items not considered in segment
     operating performance                 -        -          58      -
    Other, net                               5      (14)       25      (44)
       Unallocated corporate
        expense, net                    $ (150)  $ (162)   $ (383)  $ (490)



                                       THREE MONTHS ENDED  NINE MONTHS ENDED
                                          SEPTEMBER 30,      SEPTEMBER 30,

                                          2005     2004      2005     2004
  FAS/CAS pension adjustment
    FAS 87 expense                      $ (280)  $ (222)   $ (839)  $ (665)
    Less: CAS costs                       (125)     (74)     (373)    (219)
       FAS/CAS pension
        adjustment - expense            $ (155)  $ (148)   $ (466)  $ (446)



                      THREE MONTHS ENDED             NINE MONTHS ENDED
                      SEPTEMBER 30, 2005             SEPTEMBER 30, 2005

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



  Unusual items
  Gain on
   Intelsat sale  $  -      $  -      $  -       $ 47      $ 31    $ 0.07
  LMI impairment     -         -         -        (30)      (19)    (0.04)
  Inmarsat gain      -         -         -         41        27      0.06
                  $  -      $  -      $  -       $ 58      $ 39    $ 0.09



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


                                       THREE MONTHS ENDED  NINE MONTHS ENDED
                                          SEPTEMBER 30,      SEPTEMBER 30,

                                          2005     2004      2005     2004
  Depreciation and amortization of
   property, plant and equipment
  Systems & IT Group:
     Electronic Systems                  $  42    $  41     $ 126    $ 121
     Integrated Systems & Solutions         12        6        32       22
     Information & Technology Services       3       11        10       36
                 Systems IT Group           57       58       168      179

  Aeronautics                               33       24        93       70
  Space Systems                             34       40        97       98
     Segments                              124      122       358      347

  Unallocated corporate expense, net        14       11        38       31
      Total depreciation and
       amortization                      $ 138    $ 133     $ 396    $ 378


                                       THREE MONTHS ENDED  NINE MONTHS ENDED
                                          SEPTEMBER 30,      SEPTEMBER 30,

                                          2005     2004      2005     2004
  Amortization of purchased intangibles
  Systems & IT Group:
     Electronic Systems                  $  12    $  12     $  36    $  35
     Integrated Systems & Solutions          4        3        11       11
     Information & Technology Services       5        4        14       11
                 Systems & IT Group         21       19        61       57

  Aeronautics                               12       12        37       38
  Space Systems                              2        2         6        6
     Segments                               35       33       104      101
  Unallocated corporate expense, net         3        3         9        6
      Total amortization of purchased
       intangibles                       $  38    $  36     $ 113    $ 107



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

                                                SEPTEMBER 30,  DECEMBER 31,
                                                         2005          2004
  Assets
  Cash and cash equivalents                         $   3,140     $   1,060
  Short-term investments                                  426           396
  Accounts receivable                                   4,440         4,094
  Inventories                                           1,648         1,864
  Other current assets                                  1,383         1,539

     Total current assets                              11,037         8,953

  Property, plant and equipment, net                    3,566         3,599
  Investments in equity securities                        320           812
  Goodwill                                              8,299         7,892
  Purchased intangibles, net                              595           672
  Prepaid pension asset                                   987         1,030
  Other noncurrent assets                               2,553         2,596

     Total assets                                   $  27,357     $  25,554

  Liabilities and Stockholders' Equity
  Accounts payable                                  $   1,854     $   1,726
  Customer advances and amounts in excess
   of costs incurred                                    4,434         4,028
  Other accrued expenses                                3,038         2,797
  Current maturities of long-term debt                    208            15

     Total current liabilities                          9,534         8,566

  Long-term debt                                        4,874         5,104
  Accrued pension liabilities                           1,933         1,660
  Post-retirement and other noncurrent liabilities      3,283         3,203
  Stockholders' equity                                  7,733         7,021

     Total liabilities and stockholders' equity     $  27,357     $  25,554



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

                                             NINE MONTHS ENDED SEPTEMBER 30,

                                                        2005          2004

  Operating Activities
  Net earnings                                       $ 1,257       $   894
  Adjustments to reconcile net earnings to net
   cash provided by operating activities:
    Depreciation and amortization of property,
     plant and equipment                                 396           378
    Amortization of purchased intangibles                113           107
    Changes in operating assets and liabilities:
          Receivables                                   (283)          165
          Inventories                                    214           693
          Accounts payable                               115           113
          Customer advances and amounts in excess
           of costs incurred                             406          (157)
    Other                                                920           642

  Net cash provided by operating activities            3,138         2,835

  Investing Activities
  Expenditures for property, plant and equipment        (362)         (393)
  (Purchase) sale of short-term investments, net         (30)          153
  Acquisitions of businesses / investments in
   affiliated companies                                 (416)            -
  Divestitures and other activities                      806            15
  Other                                                    1            25

  Net cash used for investing activities                  (1)         (200)

  Financing Activities
  Repayments related to long-term debt                   (39)         (137)
  Common stock activity, net                            (686)         (391)
  Common stock dividends                                (332)         (294)

  Net cash used for financing activities              (1,057)         (822)

  Net increase in cash and cash equivalents            2,080         1,813
  Cash and cash equivalents at beginning of period     1,060         1,010

  Cash and cash equivalents at end of period         $ 3,140       $ 2,823



                       LOCKHEED MARTIN CORPORATION
         Consolidated Condensed 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                     1,257                             1,257

  Common stock
   dividends                        (332)                             (332)

  Common stock
   activity, net   (4)    (373)                 7                     (370)

  Other
   comprehensive
   income                                                   157        157


  Balance at
   September 30,
   2005          $434   $1,850    $6,840     $(16)      $(1,375)    $7,733



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


                                            SEPTEMBER 30,      DECEMBER 31,
                                                2005              2004
  Backlog
  Systems & IT Group:
     Electronic Systems                      $  20,070         $  18,239
     Integrated Systems & Solutions              4,619             4,586
     Information & Technology Services           4,784             4,560
               Systems & IT Group               29,473            27,385

  Aeronautics                                   24,374            30,489
  Space Systems                                 15,218            16,112
    Total                                    $  69,065         $  73,986

SOURCE: Lockheed Martin Corporation

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Relations: James Ryan, +1-301-897-6584 or Mike Gabaly, +1-301-897-6455, all of
Lockheed Martin