Lockheed Martin
Commercial Space Systems (LMCSS) today announced plans to realign its
business structure to reduce overall costs and improve its competitive
position in the commercial satellite manufacturing marketplace.

“The action we are taking will enable us to streamline our
business infrastructure and internal processes, provide greater value
to our customers, and win new business,” said Ted Gavrilis, president
of Lockheed Martin Commercial Space Systems.

Under the realignment, Commercial Space Systems will relocate
program management, business operations satellite engineering and
design, business development and executive functions from Sunnyvale to
the company’s Newtown, Pa. facility. Newtown currently provides the
communications payloads for the A2100 satellite series, as well as
secure, protected military communications payloads for the U.S.

The final assembly, integration and testing of the company’s A2100
spacecraft will continue to take place in Sunnyvale’s state-of-the-art
Commercial Satellite Center, one of the largest, most efficient
facilities of its type in the industry. The manufacturing of A2100
solar arrays and assembly of certain electronic boxes will also
continue in Sunnyvale. This relocation does not affect operations of
three commercial satellite programs nearing the completion of their
manufacturing cycle in Sunnyvale or the previously announced plan to
assemble the A2100 propulsion systems in the Lockheed Martin
Propulsion Center of Excellence being built in Stennis, Mississippi.

Gavrilis reaffirmed the company’s dedication to mission success:
“Our team has achieved an impressive record of mission success over
the years, building and launching commercial satellites for customers
worldwide,” added Gavrilis. “I am confident that this move will
improve our position in a highly competitive marketplace and enhance
our ability to continue meeting our customers needs.”

About 70 employees based in Sunnyvale will be transferred to
Newtown. Sunnyvale will continue to support ongoing commercial space
production activities at the product centers, the spacecraft
operations center and at the Integration and Test facility.

Lockheed Martin Commercial Space Systems markets, designs and
builds geostationary and non-geostationary telecommunications and
remote sensing satellites for customers worldwide. The company builds
the A2100 series for direct broadcast, mobile wireless, broadband and
fixed service applications. Customers include: Asia Cellular Satellite
International, Astrolink International LLC, China Orient Telecomm
Satellite Co. Ltd, EchoStar Communications Corporation, GE Americom,
Japan Satellite Systems Inc., Korea Telecom, Lockheed Martin Global
Telecommunications, PT Telkomunikasi (TELKOM), New Skies Satellites
N.V., NTT Mobile Communications Inc., Space Communications Corporation
and Telesat Canada.

LMCSS is an operating unit of Lockheed Martin Space Systems
Company, one of the core business areas of the Lockheed Martin
Corporation (NYSE:LMTnews). Lockheed Martin has a 41-year heritage of
building reliable spacecraft for commercial and military customers,
having launched more than 875 spacecraft and achieving nearly 1,500
years of on-orbit performance experience.

For more information on Lockheed Martin Commercial Space Systems,
see our website at: http://www.lmcommercialspace.com.