A team led by Lockheed Martin [NYSE:
LMT] today submitted its proposal to design and build the Mobile User
Objective System (MUOS), a
next-generation narrowband tactical satellite communications system for the
U.S. Navy that will provide significantly improved and assured
communications for the mobile warfighter.

"This is an important national effort," said Manny DiMiceli, vice president
and MUOS program manager, Lockheed Martin Space Systems, "and we have
assembled a talented and dedicated team and submitted an affordable and
innovative solution that fully meets the customer’s requirements. We look
forward to working with our Navy customer in designing and building a system
that will greatly expand the capacity for UHF communications and meet the
need for ‘comms on the move’ as the military increasingly relies on light
and mobile forces in theatre."

The Lockheed Martin team includes General Dynamics, Scottsdale, Ariz., and
Boeing Satellite Systems, El Segundo, Calif. Lockheed Martin Space Systems,
Sunnyvale, Calif. is the prime contractor and systems integrator for the
MUOS program.

The proposal submitted today is for the multi-billion dollar Risk Reduction,
Design Development, Acquisition and Operations Support contract scheduled to
be awarded by the U.S. Navy Space and Naval Warfare Systems Command
(SPAWAR), San Diego, Calif. in June 2004. The proposal leverages the
team’s combined experience developing advanced military and commercial
communications systems and is based on architecture and risk reduction
activities conducted as part of a 14-month Component Advanced Development
contract awarded in Sept. 2002.

"As team leader for both the user-entry and ground segments of the MUOS
program, General Dynamics is supplying a secure ground network, and
satellite management services critical in meeting the needs of warfighters,"
said Ron Taylor, a vice president of General Dynamics. "The Lockheed
Martin/General Dynamics/Boeing team offers a solid technological solution
and we are well-equipped to successfully execute this program."

MUOS is a key element of the DoD’s Advanced Narrowband Communications
system. Over the next two decades, MUOS will replace the current Ultra High
Frequency Follow-On (UFO) system. The Navy’s UFO satellites – the last of
which was launched in December 2003 – currently provide narrowband tactical
satellite communications to Joint Forces and Coalition partners. Spacecraft
in the UFO system were launched aboard Lockheed Martin-built Atlas rockets
between 1993 and 2003.

"Throughout our 15-year partnership with the U.S. Navy to develop and deploy
the UFO satellite fleet, we have witnessed great leadership from the Navy in
providing vital global communications services to Armed Forces personnel
worldwide," said Dave Ryan, vice president and general manager of Boeing
Satellite Systems. "We look forward to once again working with our Navy
customer to deliver an integrated solution for the MUOS mission."

Boeing Satellite Systems, the satellite-manufacturing arm of Boeing
Integrated Defense Systems, is a major provider of space systems,
communication satellites, and payloads for national defense, science,
environmental and commercial applications.

General Dynamics, headquartered in Falls Church, Virginia, employs
approximately 67,600 people worldwide and had 2003 revenues of $16.6
billion. The company has leading market positions in mission-critical
information systems and technologies, land and amphibious combat systems,
shipbuilding and marine systems, and business aviation. More information
about the company can be found on the World Wide Web at
www.generaldynamics.com.

Headquartered in Bethesda, Md., Lockheed Martin employs about 130,000 people
worldwide and is principally engaged in the research, design, development,
manufacture and integration of advanced technology systems, products and
services. The corporation reported 2003 sales of $31.8 billion.

# # #

Media Contacts: Steve Tatum, 408-742-7531; e-mail, Stephen.o.tatum@lmco.com
<mailto:Stephen.o.tatum@lmco.com>