Lockheed Martin Highlights Necessity and Value of 5th Generation Fighters and Next Generation Airlift

ORLANDO, Fla., Feb. 3 /PRNewswire-FirstCall/ -- Senior executives from
Lockheed Martin (NYSE: LMT) today emphasized the crucial role that 5th
Generation fighters and next generation tactical airlifters play in forging an
interdependent U.S. military structure with significantly increased capability
over the legacy force.

A unique panel presentation at the Air Force Association's 22nd Annual Air
Force Warfare Symposium brought together Lockheed Martin executive leadership
and program general managers for three major U.S. Air Force (USAF) aircraft
programs -- the F-22 Raptor, F-35 Joint Strike Fighter and C-130J tactical
airlifter -- along with the company's business development chief for
aeronautics. The panelists reviewed current performance statistics, the
necessity of advanced capabilities and value provided to the USAF, and new
aeronautics business opportunities.

F-22 Raptor

Performance success for the F-22, which achieved Initial Operational
Capability in December, continues with its first homeland defense mission --
Operation Noble Eagle over the skies of our nation's capital. From a
production standpoint, 2005 was a record year for aircraft deliveries, and
cost reductions continue in the program that is providing both unmatched
capability for the U.S. Air Force and a significant value to taxpayers.

"The Raptor not only combines the capabilities of several legacy aircraft
by delivering air dominance, lethal intelligence, surveillance and
reconnaissance, but it does so without adversaries even knowing the aircraft
is out there -- as proven this past year," said Larry Lawson, executive vice
president and F-22 program general manager. "As the world's only 5th
Generation fighter aircraft in operation, it has overwhelming capability to
ensure USAF air dominance for the next four decades."

F-35 Joint Strike Fighter

The F-35 Joint Strike Fighter program - the only other 5th Generation
fighter now in development for U.S. and allied nations - has posted very
successful performance with numerous achievements this past year and even more
planned for 2006, according to Dan Crowley, executive vice president and
general manager of the F-35 program. "The F-35 program is on a solid
development track with first flight planned for Fall 2006. This will initiate
the most comprehensive and complex flight-test program in history. Currently,
the first F-35 is preparing to exit the factory floor for the flight line. We
are executing to schedule and will have eight planes being assembled by the
end of the year."

The single-engine F-35 JSF will be manufactured in three versions: a
conventional-takeoff-and-landing (CTOL) variant for the U.S. Air Force, an
aircraft-carrier version (CV) for the U.S. Navy, and a short-takeoff/vertical
landing (STOVL) version for the U.S. Marine Corps, the United Kingdom Royal
Air Force and Royal Navy.

"Assembly of the first F-35 is our most visible achievement to date," said
Crowley. "Initiation of electrical power and arrival of the F135 Engine,
slated for installation in February, were also significant achievements for
the program. We have already started major assemblies on the first three STOVL
aircraft, which all incorporate the weight reductions and structural
improvements of the updated 'optimized' design. Assembly of the first
optimized CTOL aircraft also is under way. Most recently, the F-35 program was
approved to proceed to the Air System Critical Design Review for the F-35
STOVL and CTOL variants, Feb. 14-17, a positive reflection of the program's
developmental progress."

The F-35 has been selected as a U.S. Department of Defense pilot program
for Performance Based Logistics (PBL), the operation, support and sustainment
model that shows great promise for driving down aircraft ownership costs while
improving availability. "The JSF program is enhancing this PBL model by
operating a suite of Prognostics and Health Management capabilities that
monitor the status of aircraft systems and automatically transmit technical
information to maintainers on the ground, improving efficiency and diagnostic
processes and procedures to sustain the aircraft," according to Crowley.

C-130J Tactical Airlifter

The interdependent force would not be complete without airlift. As a key
asset in the Global War on Terror, the C-130J is demonstrating its
transformational capabilities for intra-theater operations in daily combat
missions. "The C-130J is redefining tactical airlift with overwhelming
performance in a variety of mission scenarios around the world," said David
Haines, vice president C-130 programs. "It's proving to be one of the most
reliable platforms in theater and is setting the standard and benchmark for
future airlift."

"The C-130J's performance in combat, humanitarian and peacekeeping
missions around the world has been outstanding," said Haines. "In combat
operations, the J is outperforming older C-130s, especially in high, hot and
humid conditions with mission capable rates well above the norm. In fact, two
'Js' are routinely moving the same amount of troops and equipment as three
older E or H models. This provides the combat commander with additional
resources for other missions.

5th Generation Aircraft

Rob Weiss, vice president of domestic and international business
development, provided a look at what's next as the U.S. incorporates 5th
Generation fighters into the fleet and leverages the capabilities of the
latest technology in airlift.

"These battle-changing systems -- the F-35 and F-22 -- provide a quantum
leap in capability and survivability over legacy aircraft at a significantly
lower cost when you factor in the inherent savings in operations and support,"
Weiss said. "Fifth generation fighters are the best value for the money today
and the only fighters that can survive and defeat the threats of tomorrow."

"In a variety of simulated scenarios, legacy fighters incurred five times
more losses than F-22s and F-35s, required a prohibitive number of
tanker/transport aircraft and required a large logistics infrastructure and
untenable basing footprint," said Weiss. "5th Generation fighters are designed
to span all air dominance mission requirements. The F-22 is optimized for air-
to-air scenarios but will also have formidable air-to-ground capabilities. The
F-35 is optimized for air-to-ground scenarios, but will have significant air-
to-air capability. Continued investment in a mix of these 5th Generation
fighters is essential to ensure air dominance for future U.S. military and
joint forces anytime, anywhere."

C-130J New Business Opportunities

For the C-130J, new business opportunities include both domestic and
international prospects. "We're working closely with the U.S. Air Force,
Marine Corps and the special operations commands to help address their
requirements," said Weiss. For example, the USAF has a stated requirement for
C-130Js. At the conclusion of the first multi-year C-130J contract, the Air
Force and Marine Corps will still be short of those requirements.

Air Force Special Operations Command (AFSOC) published a strategic plan
outlining the requirement for Combat Rescue Tanker aircraft and a desire to
"grow and recapitalize the HC-130 fleet. "We responded to a Request for
Information with a detailed description of a new HC-130J aircraft, and we will
continue to work closely with AFSOC as requirements and plans mature," said
Weiss.

In addition to domestic new business opportunities, Lockheed Martin is
pursuing a number of international opportunities for the C-130J. Weiss said
that countries like Canada, France, Germany and India have expressed interest
in the aircraft. Currently seven services in five countries fly the C-130J --
the U.S. Air Force, U.S. Marine Corps, U.S. Coast Guard, Australia, Denmark,
the U.K. and Italy.