Lockheed Martin announced today a
significant step in a three-year effort to fully integrate the programmatic
and functional capabilities of its Space Systems Company’s operations based in
Sunnyvale, Calif., and Denver, Colo., and, in turn, enhance their competitive
posture.

Effective Jan. 3, 2003, Space Systems’ former Astronautics and Missiles
& Space organizations and their operations throughout the United States will
be combined into a single business with one common senior management team and
a unified focus.

The new entity, to be known as Space & Strategic Missiles, will be led by
G. Thomas Marsh, president and general manager. Marsh will be based in
Denver, reporting to Albert E. Smith, executive vice president, Space Systems.
Serving as deputies to Marsh will be Michael C. Gass in Denver, as vice
president of Space Launch, and Leonard F. Kwiatkowski in Sunnyvale, as vice
president of Military Space. This streamlined management structure will
enable Space & Strategic Missiles to optimize its business portfolio and
capitalize on the synergies within the combined organization.

“Through this integration, we intend to capitalize on the complementary
strengths and capabilities across the newly combined organization to drive
growth while ensuring mission success,” said Smith. “These operations possess
unique national defense capabilities. By eliminating redundancies and
operating in a more efficient manner, we will be better positioned to serve
our customers and provide opportunities for our employees.”

This integration caps a process begun in 1999 to closely align the
Sunnyvale- and Denver-based organizations. Earlier efforts included linking
the two organizations’ cost structure, implementing a successful asset
reduction initiative and introducing standard processes and tools in several
areas. The final phase of this effort will link the general management and
line-of-business accountability, and expand work sharing within the combined
organization.

Marsh brings exceptional credentials to his new position, having led both
the Sunnyvale- and Denver-based organizations, and having served as president
of what is now the company’s Michoud Operations, Smith pointed out. Marsh
also has served as president of Space Systems’ Special Programs organization.
Since joining the Corporation in 1969, Marsh has risen through a series of
increasingly responsible positions for both military and civil programs,
including launch vehicles and spacecraft.

Leonard F. Kwiatkowski, currently serving as executive vice president of
programs for Missiles & Space, will call upon his 30-plus years in senior Air
Force and Lockheed Martin positions in his new role as vice president,
Military Space and deputy to Marsh. Kwiatkowski has extensive military and
industry background in intelligence systems, communications, military space
and systems acquisition.

Michael C. Gass brings more than 20 years of successful launch vehicle
experience to his new position as vice president of Space Launch and deputy to
Marsh. Currently serving as vice president, Atlas/EELV Programs, Gass has
been directly involved with the Atlas space launch vehicle program for the
past 14 years in significant operational and management positions and has
considerable launch vehicle, spacecraft and production expertise.

Other Space Systems business units are not directly affected by this
integration, but will continue to be included in company-wide streamlining and
standardization initiatives.

Lockheed Martin Space Systems Company is one of the core operating units
of Lockheed Martin Corporation. Space Systems designs, develops, tests,
manufactures and operates a variety of advanced technology systems for
military, civil and commercial customers. Chief products include a full-range
of space launch systems, including heavy-lift capability, ground systems,
remote sensing and communications satellites for commercial and government
customers, advanced space observatories and interplanetary spacecraft, fleet
ballistic missiles and missile defense systems.

Headquartered in Bethesda, Md., Lockheed Martin is a highly diversified
global enterprise principally engaged in the research, design, development,
manufacture and integration of advanced-technology systems, products and
services. The Corporation’s core businesses span space and
telecommunications, electronics, information and services, aeronautics, energy
and systems integration. Lockheed Martin had 2001 sales surpassing
$24 billion.

For more information about Lockheed Martin Space Systems, see the Missiles
& Space website at: http://lmms.external.lmco.com and the Astronautics
website at: http://www.ast.lmco.com/ 

    Contacts:  Joan Underwood                   Steve Tatum
               Lockheed Martin Space Systems    Lockheed Martin Space Systems
               Ph:  303-971-7398                Ph:  408-742-7531
               Pager:  800-745-8198             Pager:  888-926-2912
               joan.b.underwood@lmco.com        stephen.o.tatum@lmco.com