An upgraded Global Positioning System (GPS) satellite built by Lockheed
Martin [NYSE: LMT] for the U.S. Air Force, was successfully launched today
from Cape Canaveral. The satellite features significant performance
upgrades, including an advanced antenna panel, which will increase power for
GPS receivers. This was the 11th successful launch of the new-generation
GPS IIR spacecraft.

The satellite, designated GPS IIR-12, will join 28 other operational GPS
satellites now on orbit, and will improve global coverage and increase the
overall performance of the GPS constellation. The company has delivered nine
more of these satellites to the Navstar GPS Joint Program Office, Space and
Missile Systems Center, to sustain the GPS constellation.

"Our long-standing partnership with the Air Force and the excellent
performance of the GPS IIR satellite series is a source of considerable
pride for Lockheed Martin," said Dave Podlesney, GPS IIR Program Director,
Lockheed Martin Space Systems in Valley Forge, Pa. "We look forward to once
again providing our customer with a high-quality, high-value satellite to
ensure a robust GPS constellation for the warfighter as well as commercial
and private users world-wide."

The Global Positioning System allows any properly equipped user to determine
precise time and velocity and worldwide latitude, longitude and altitude to
within a few meters. Although originally designed as a guidance and
navigational tool for the military, GPS has proven beneficial in the
commercial and civil markets for a number of activities, including
transportation, surveying and rescue operations.

The GPS IIR satellites are compatible with the current system and provide
improved navigation accuracy, achieved by using an ITT Industries payload
system. Additionally, increased autonomy and longer spacecraft life are
inherent in the Lockheed Martin satellite design.

To bring new capabilities to the GPS constellation, Lockheed Martin is under
contract to modernize up to eight existing GPS IIR spacecraft already built
and in storage. These spacecraft, designated GPS IIR-M, will incorporate
two new military signals and a second civil signal, thus providing military
and civilian users of the navigation system with improved capabilities much
sooner than previously envisioned.

Lockheed Martin is performing GPS modernization at its Space Systems
facilities in Valley Forge, Pa., and ITT Industries in Clifton, N.J. The
first launch of a GPS IIR-M satellite is scheduled for February 2005.

Lockheed Martin is also leading a team to develop the U.S. Air Force’s
next-generation Global Positioning System, GPS III. The team, which
includes Spectrum Astro, Raytheon, ITT, and General Dynamics, is currently
under contract for GPS III concept definition and plans to compete for the
future development.

GPS III will address the challenging military transformational and civil
needs across the globe, including advanced anti-jam capabilities, improved
system security and accuracy, and reliability. The new satellite system
will enhance space-based navigation and performance and set a new world
standard for positioning and timing services. The team selected to meet
this challenge will provide system and sustaining engineering, satellite
development and production, control segment upgrades, and continuous
research and development for this evolutionary system.

Contact:

Steve Tatum, 408-742-7531; e-mail, Stephen.o.tatum@lmco.com