BETHESDA, MD, October 20th, 1998 -- Lockheed Martin Corporation (NYSE: LMT) today reported third quarter 1998 earnings per share of $1.67 on a diluted basis, compared to third quarter 1997 diluted earnings per share of $1.51. Net earnings for the third quarter totaled $318 million. In the third quarter of 1997, net earnings were $331 million. Third quarter 1998 results reflect the divestiture of businesses representing more than $2 billion of annualized sales and the retirement of the equivalent of 29 million shares of common stock previously held by General Electric. As a result, average diluted shares outstanding were 191 million in third quarter 1998 compared to 218 million a year ago.

"Results year-to-date are consistent with expectations," said Vance Coffman, Lockheed Martin chairman and chief executive officer, "and as we have said all year, sales, earnings, and cash flow for 1998 are heavily weighted in the fourth quarter."

Coffman added, "We believe we are on track to meet our free cash flow goals for 1998. Having generated nearly $650 million in the third quarter illustrates our steadfast focus on this performance metric. We also continue to win new business at an outstanding rate, reflecting our on-going concentration on performance and costs."

Coffman noted that the formation of Lockheed Martin Global Telecommunications and the proposed acquisition of COMSAT are expected to position the Corporation as a dynamic new competitor in the rapidly expanding global telecommunications services business. "We envision Lockheed Martin Global Telecommunications to be a $1-billion business by the year 2000," he said.

Sales for the third quarter 1998 were $6.3 billion versus $6.6 billion during third quarter 1997. Adjusted for divestitures, sales for the third quarter 1997 would have been $6.1 billion, representing growth in 1998 of 3.3 percent. The Corporation's operating profit (earnings before interest and taxes) for the third quarter 1998 was $730 million compared to $747 million in the comparable 1997 period. Adjusted for acquisitions and divestitures during the periods, operating profit would have been flat.

The Corporation's backlog totaled $43.9 billion at quarter's end, compared with $47.1 billion at the end of 1997.

In reporting on the Corporation's financial performance for the quarter, Coffman emphasized a series of recent strategic business actions, contract wins, and milestones with long-term benefits to Lockheed Martin:

* The National Aeronautics and Space Administration (NASA) selected a Lockheed Martin-led team to consolidate mission and data services operations at five of NASA's major centers. The Consolidated Space Operations Contract (CSOC) is valued at more than $3 billion over 10 years.* The U.S. Army Communications & Electronics Command awarded Lockheed Martin a contract for Rapid Response to Critical Requirements Support. This Indefinite Delivery/Indefinite Quantity contract has an estimated maximum value of almost $1.8 billion over a five-year period.* The U.S. Air Force awarded the Corporation a $1.8 billion, seven-year contract to provide logistics support, engineering, material management and depot repair for the F-117 stealth fighter.* The C-130J program began deliveries to the United Kingdom in August and received FAA certification in September. Four aircraft were delivered during the quarter.*The Corporation delivered 39 F-16s compared with 26 in the same quarter a year ago.* Real 3D and Silicon Graphics, Inc. (SGI) agreed to a broad strategic relationship that includes a minority equity investment by SGI in Real 3D. Lockheed Martin remains the majority owner of Real 3D while Intel and SGI hold minority interests.* The U.S. Department of Energy and Lockheed Martin Corporation signed a contract modification to extend Lockheed Martin's management of Sandia National Laboratories for five more years, through FY 2003.* The second DarkStar completed its second flight in mid-September. DarkStar vehicles three and four are on schedule to move to Edwards Air Force Base later this year.* The second F-22 Raptor flew nonstop from the Aeronautical Systems plant in Marietta, Georgia, to Edwards Air Force Base, California, where it joined Raptor 01 in a very successful flight test program.* The X-35 Joint Strike Fighter program successfully completed its Final Design Review, indicating that the Corporation is making excellent progress toward the goal of maximum product affordability, efficiency and risk mitigation. * During the quarter, Lockheed Martin completed one Proton rocket launch, that boosted the ASTRA 2A communications satellite into geosynchronous transfer orbit.* NASA's Jet Propulsion Laboratory selected Lockheed Martin to design and build the interferometer for the $480 million Space Interferometry Mission, an observatory designed to measure the positions of stars. * The U.S. Air Force awarded the team of Boeing, Lockheed Martin and TRW the authority to proceed with development of a revolutionary Airborne Laser (ABL) weapon system for which Lockheed Martin is providing the beam control and fire control system. * The U.S. Strategic Command selected Lockheed Martin to manage the integration, mission support and modernization of its computing infrastructure. The Computing Environment STRATCOM Architecture (CESAR) program is valued at $250 million over six years. *Lockheed Martin was selected by the Defense Information Services Agency to manage the FBI's new Card Scanning Service program. The contract, valued at $39 million over six years, covers the conversion of paper fingerprint records into high-quality electronic records for the FBI. * The U.S. Navy awarded a Lockheed Martin-led team a $281 million, seven-year contract for the Q-70 tactical display and computing system program that supports the common operating environment being implemented for Navy surface, subsurface, land and airborne platforms.* Australia's Ministry of Defense awarded contracts worth approximately $100 million for the supply and initial five-year support of four Tactical Air Defense Radar Systems for the Australian Defence Force.* The U.S. Navy awarded Lockheed Martin a $77 million contract to complete the design for two AN/SQQ-89 (V)15 UnderSea Warfare systems that protect U.S. Navy destroyers and cruisers from undersea threats.* Lockheed Martin received a contract totaling $63 million to upgrade 21 Multiple Launch Rocket System vehicles.* The U.S. Navy awarded Lockheed Martin a $61 million, two-year contract for the development of a common cockpit prototype for the H-60 helicopter fleet.* Lockheed Martin received a contract worth up to $18.2 million to deliver LANTIRN navigation and Sharpshooter targeting systems for use on Egyptian Air Force F-16s.* Lockheed Martin Postal Systems in Owego, N.Y, was awarded a contract modification for $45 million to provide the U.S. Postal Service 54 additional Small Parcel and Bundle Sorter systems.* The first bus equipped with Lockheed Martin Control Systems' HybriDrive system began revenue service in New York City. HybriDrive combines a diesel engine and an electric motor in a design that greatly reduces fuel consumption and emissions and provides a quieter, smoother ride. * Lockheed Martin was selected as the recipient of the Air Traffic Control Association's 1998 Industry Award. The ATCA 1998 Industry Award recognizes outstanding achievement and contribution in advancing the science of air traffic control. This is the second straight year that Lockheed Martin has been so honored.

NOTE: Statements which are not historical facts are forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from anticipated results including the effects of government budgets and requirements, economic conditions, competitive environment, timing of awards and contracts; the outcome of contingencies including litigation and environmental remediation, and program performance in addition to other factors not listed. See in this regard the Corporation's filings with the Securities and Exchange Commission. The Corporation does not undertake any obligation to publicly release any revisions to forward looking statements to reflect events or circumstances or changes in expectations after the date of this press release or the occurrence of anticipated events.

LOCKHEED MARTIN CORPORATIONConsolidated Results (In millions, except per share data)QUARTER ENDED SEPTEMBER 30, YEAR TO DATE SEPTEMBER 30, 1998 1997 % Change 1998 1997 % ChangeNet Sales $6,349 $6,619 -4% $19,086 $20,191 -5%Earnings beforeInterest and Taxes $730 $747 -2% $2,056 $2,113 -3%Interest Expense $221 $213 4% $655 $615 7%Pre-tax Earnings $509 $534 -5% $1,401 $1,498 -6%Income Taxes $191 $203 -6% $525 $569 -8%Effective TaxRate 37.5% 38% N/M 37.5% 38% N/MNet Earnings $318 $331 -4% $876 $929 -6%Basic Earnings perShare $1.69 $1.70 -1% $4.67 $4.78 -2%Average sharesassuming nodilution 188.6 185.9 187.7 184.9Diluted Earningsper Share $1.67 $1.51 11% $4.61 $4.28 8%Average sharesassuming dilution 190.6 217.6 190.1 216.9

LOCKHEED MARTIN CORPORATIONSegment Results(In millions)QUARTER ENDED SEPTEMBER 30, YEAR TO DATE SEPTEMBER 30, 1998 1997 % Change 1998 1997 % Change

Space & Strategic Missiles*Net Sales 1,714 1,944 -12% 5,626 5,828 -3%Segment EBIT 261 310 -16% 762 874 -13%Margins 15.2% 15.9% 13.5% 15.0%Amortization ofGoodwill & ContractIntangibles 7 7 0% 22 22 0%

Electronics**Net Sales 1,708 1,699 1% 5,176 5,192 0%Segment EBIT 226 169 34% 549 435 26%Margins 13.2% 9.9% 10.6% 8.4%Amortization ofGoodwill & ContractIntangibles 57 58 -2% 169 174 -3%

Information & Services***Net Sales 1,237 1,631 -24% 3,731 4,958 -25%Segment EBIT 39 46 -15% 165 224 -26%Margins 3.2% 2.8% 4.4% 4.5%Amortization ofGoodwill & ContractIntangibles 25 26 -4% 76 81 -6%

Aeronautics****Net Sales 1,638 1,294 27% 4,370 4,100 7%Segment EBIT 171 152 13% 474 439 8%Margins 10.4% 11.7% 10.8% 10.7%Amortization ofGoodwill & ContractIntangibles 20 20 0% 60 60 0%

Energy & OtherNet Sales 52 51 2% 183 113 62%Segment EBIT 33 70 -53% 106 141 -25%Margins N/M N/M N/M N/M

* 1998 results in the third quarter reflect a significant improvement related to the Atlas launch vehicle program.** 1997 and 1998 results include the operations of LM Commercial Electronics divested effective February 22, 1998.*** 1997 results include the operations of certain businesses split off as L3 Communications Corporation effective March 30, 1997, and the operations of Access Graphics exchanged with General Electric Company effective November 17, 1997.**** 1997 results include the operations of Aerostructures exchanged with General Electric Company effective November 17, 1997.

LOCKHEED MARTIN CORPORATIONOther Financial Information (In millions, except for percentages)

QUARTER ENDED SEPTEMBER 30, 1998 1997

EBIT to Sales Margin 11.5% 11.3%Amortization of Goodwill and ContractIntangibles Resulting from Prior Acquisitions (pretax) $110 $111Depreciation of Fixed Assets $140 $146EBITDA $980 $1,004

YEAR TO DATE SEPTEMBER 30, 1998 1997

EBIT to Sales Margin 10.8% 10.5%Amortization of Goodwill and ContractIntangibles Resulting from PriorAcquisitions (pretax) $328 $337Depreciation of Fixed Assets $416 $443EBITDA $2,800 $2,893

9/30/98 12/31/97Backlog $43,922 * $47,059Total Debt $11,955 * $11,898Long-term (including current maturities) $10,762 * $11,404Short-term $1,193 * $494Cash and Cash Equivalents $183 * $0Stockholders' Equity $6,008 * $5,176Total debt-to-capital 66.6% * 69.7%

* Preliminary data