Lockheed Martin Aeronautics Co., a business unit of Lockheed Martin Corporation [NYSE: LMT], is disappointed that the International Association of Machinists, District Lodge 776, rejected the company's contract offer and voted to strike in its meeting today. The company offered an excellent proposal with many improvements for the union members.

The current three-year labor agreement expires at midnight tonight. The company's Fort Worth plant will be open for business as usual tomorrow and non-striking employees will be expected to report to work as usual. The company has contingency plans in place to continue plant operations and critical production tasks.

No additional meetings are scheduled with the union at this time.

Lockheed Martin Aeronautics Co., headquartered in Fort Worth, Texas, is a leader in the design, development, systems integration, production and support of advanced military aircraft and related technologies. Its customers include the military services of the United States and allied countries throughout the world. Products include the F-16, F/A-22, F-35 JSF, F-117, T-50, C-5, C-130, C-130J, P-3, S-3 and U-2.

Headquartered in Bethesda, Maryland, Lockheed Martin employs about 125,000 people worldwide and is principally engaged in the research, design, development, manufacture and integration of advanced technology systems, products and services. The Corporation reported 2002 sales of $26.6 billion.

For more information: http://www.lockheedmartin.com/negotiations/

For company background: http://www.lmaeronautics.com/

SOURCE: Lockheed Martin Aeronautics Co.