BETHESDA, MD, January 14th, 1998 -- Lockheed Martin Corporation (NYSE: LMT) today announced it has spun off Real 3D, Inc. as an independent corporation, with Lockheed Martin retaining majority ownership. The company also announced that Intel has purchased a 20 percent minority interest in Real 3D. Under terms of the formation agreements, Intel will have a non-voting observer on the board of Real 3D and the two companies will continue to collaborate and co-develop graphics technologies and products. Financial terms were not disclosed.

Real 3D, previously a division of Lockheed Martin, develops and produces real-time three-dimensional (3-D) graphics technology products. Real 3D and Intel are currently co-developing an integrated 3-D/2-D/video graphics chip, called the Intel740, for mainstream desktop PCs. The Intel740 is set to debut in the first quarter of 1998.

Arthur E. Johnson, president and chief operating officer of Lockheed Martin's Information & Services Sector, noted, "This action is consistent with Lockheed Martin's strategy of leveraging selective technologies developed for the military into commercial applications with high growth potential. Our agreement with Intel marks another important milestone toward successfully commercializing Lockheed Martin's extensive three-dimensional technology portfolio through Real 3D and reflects our strategy to achieve significant growth in our information technology business. We are delighted to expand our exciting relationship with Intel and believe Real 3D is poised for tremendous success."

"This agreement extends our technology relationship with Real 3D and Lockheed Martin, and further demonstrates our commitment to deliver the world's premier visual computing solutions," said Ron Smith, vice president and general manager for Intel's Computing Enhancement Group. "Our goal is to bring a full range of graphics, video and imaging capabilities to desktop and mobile computing platforms, and Real 3D plays an integral role in that effort."

"The world of 3-D and visual computing is beginning to enter the consciousness of mainstream computer users and our relationship with Intel gives Real 3D tremendous opportunities to address this marketplace," said Gerald W. Stanley, president, Real 3D. "The equity agreement and technology co-development work with Intel is the next logical step for Real 3D and underscores our position as a leading 3-D graphics technology provider."

Intel, the world's largest chip maker, is also a leading manufacturer of personal computer, networking, and communications products. Additional information is available at http://www.intel.com.

Headquartered in Orlando, Fla., Real 3D, Inc. is a leading provider of advanced computer graphics technology. Real 3D's technology foundation is based on Lockheed Martin's more than 30 years experience developing advanced combat and space flight simulators. Lockheed Martin has transferred its intellectual property and patents related to 3-D technology to Real 3D. The company maintains an agreement with Sega Enterprises for the development of arcade graphics chips and boards in addition to co-developing a graphics chip with Intel for desktop PCs. Real 3D's product line includes graphics boards, high-end image generators, and a 3-D laser scanning system called RealScan 3D(TM). The company also selectively licenses its 3-D graphics technology on a royalty-bearing basis to strategic technology partners. For more information on Real 3D, visit the Website at http://www.real3d.com.