Lockheed Martin Corporation today announced the expiration of its offer to exchange certain of its outstanding debt securities listed in the table below (the "old notes") for a new series of 6.15% Notes due 2036 (the "new notes") and cash. The exchange offer, which commenced on July 31, 2006, expired at 12:00 midnight, New York City time, on August 25, 2006.

On August 30, 2006, Lockheed Martin expects to deliver an aggregate principal amount of approximately $1,079,230,000 of new notes and will pay $342,811,505.63 cash consideration for the old notes accepted for exchange, plus accrued and unpaid interest on such old notes.

According to information provided by the exchange agent for the exchange offer, an aggregate principal amount set forth below of each series of the old notes listed below were validly tendered and not validly withdrawn on or before the expiration date. The table below identifies the aggregate principal amount of each series of old notes validly tendered and not withdrawn in the exchange offer. This information is preliminary and may change.

                                       Aggregate
                                       Principal                  Aggregate
                         Maturity        Amount                   Principal
                         Date of       Outstanding   Acceptance   Amount of
                           Old          Prior to      Priority    Old Notes
  Series of Old Notes     Notes         Exchange       Level       Tendered

  8.50% Debentures due   12/1/29     $1,250,000,000      1      $933,653,000
   2029
  8 3/8% Senior
   Debentures due 2024   6/15/24       $216,539,000      2       $48,767,000
   (as successor in
   interest to Loral
   Corporation)
  8 3/8% Senior
   Debentures due 2023   1/15/23       $100,000,000      3       $96,810,000
   (as successor in
   interest to Loral
   Corporation)
                                                      Total:  $1,079,230,000

Based on the amount of old notes tendered in exchange for new notes and in accordance with the terms of the exchange offer, Lockheed Martin will accept, without proration, all of the old notes in Acceptance Priority Levels 1 through 3 validly tendered as set forth above.

The new notes will be issued only (1) to holders of the old notes who have certified certain matters to Lockheed Martin, including their status as "qualified institutional buyers" as defined in Rule 144A under the Securities Act of 1933 (the "Securities Act"), or (2) outside the United States, to holders of old notes who are non-U.S. persons in compliance with Regulation S under the Securities Act.

The new notes have not been registered under the Securities Act or any state securities laws. Therefore, the new notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and any applicable state securities laws.

This press release is not an offer to sell or a solicitation of an offer to buy any security. The exchange offer was made solely by the Offering Memorandum and related letter of transmittal and only to such persons and in such jurisdictions as was permitted by applicable law.

SOURCE: Lockheed Martin Corporation