IRP PROJECT OF LOCKHEED MARTIN

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History of Lockheed Martin

Merger talks between Lockheed Corporation and Martin Marietta began in March 1994, with the companies announcing their $10 billion planned merger on August 30, 1994. The deal was finalized on March 15, 1995 when the two companies' shareholders approved the merger. The segments of the two companies not retained by the new company formed the basis for the present L-3 Communications, a mid-size defense contractor in its own right. Lockheed Martin later spun off the materials company Martin Marietta Materials. Both companies contributed important products to the new portfolio. Lockheed products included the Trident missile, P-3 Orion, F-16 Fighting Falcon, F-22 Raptor, C-130 Hercules, A-4AR Fightinghawk and the DSCS-3 satellite. Martin Marietta products included Titan rockets, Sandia National Laboratories (management contract acquired in 1993), Space Shuttle External Tank, Viking 1 and Viking 2 landers, the Transfer Orbit Stage (under subcontract to Orbital Sciences Corporation) and various satellite models. On April 22, 1996, Lockheed Martin completed the acquisition of Loral Corporation's defense electronics and system integration businesses for $9.1 billion, the deal having been announced in January. The remainder of Loral became Loral Space & Communications. Lockheed Martin abandoned plans for a $8.3 billion merger with Northrop Grumman on July 16, 1998, due to government concerns over the potential strength of the new group; Lockheed/Northrop would have had control of 25% of the Department of Defense's procurement budget. Lockheed Martin provided NASA with measurements in US Customary force units when metric was required, resulting in the loss of the Mars Climate Orbiter at a cost of $125 million. The cost for spacecraft development was $193.1 million.
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A Lockheed Martin building in Bethesda, Maryland In May 2001, Lockheed Martin sold Lockheed Martin Control Systems to BAE Systems. On November 27, 2000, Lockheed completed the sale of its Aerospace Electronic Systems business to BAE Systems for $1.67 billion, a deal announced in July 2000. This group encompassed Sanders Associates, Fairchild Systems, and Lockheed Martin Space Electronics & Communications.

In 2001, Lockheed Martin won the contract to build the F-35 Lightning II; this was the largest fighter aircraft procurement project since the F-16, with an initial order of 3,000 worth some $200 billion before export orders. In 2001, Lockheed Martin settled a nine year investigation conducted by NASA's Office of Inspector General with the assistance of the Defense Contract Audit Agency. The company paid the United States government $7.1 million based on allegations that its predecessor, Lockheed Engineering Science Corporation, submitted false lease costs claims to NASA.

On May 12, 2006, The Washington Post reported that when Robert Stevens took control of Lockheed Martin in 2004, he faced the dilemma that within 10 years 100,000 of the about 130,000 Lockheed Martin employees more than three-quarters would be retiring. On August 31, 2006, Lockheed Martin won a $3.9 billion contract from NASA to design and build the CEV capsule, also known as Orion the next spacecraft for human flight for the Ares I rocket in the Constellation Program. On August 13, 2008, Lockheed Martin acquired the government business unit of Nantero, Inc., a company that had developed methods and processes for incorporating carbon nanotubes in nextgeneration electronic devices.

Product profile
A partial listing of aircraft and other vehicles produced by Lockheed. Airliners and civil transports Lockheed Vega Lockheed Model 10 Electra Lockheed Model 12 Electra Junior Lockheed Model 14 Super Electra Lockheed Lodestar Lockheed Constellation, famous airliner Lockheed L-1649A Starliner, last model of the Lockheed Constellation Lockheed Saturn L-188 Electra Lockheed JetStar, business jet L-1011 TriStar, wide-body airline.

The Lockheed L-1011 TriStar, commonly referred to as just L-1011 (pronounced "ell-ten-eleven") or TriStar, is a medium-to-long range, widebody passenger trijet airliner. It was the third widebody airliner to enter commercial operations,

Military transports C-69/C-121, military transport versions of the Constellation Lockheed R6V Constitution, large transport aircraft C-130 Hercules, medium combat transport (AC-130 gunship) (other variants) C-141 Starlifter, long-range jet transport C-5 Galaxy, heavy transport

The Lockheed C-5 Galaxy is a large military transport aircraft built by Lockheed. It was designed to provide strategic heavy airlift over intercontinental distances and to carry outsize and oversize cargo. The C-5 Galaxy has been operated Fighters P-38 Lightning, twin-engine propeller fighter P-80 Shooting Star, the United States Air Force's first operational jet fighter T-33 Shooting Star, trainer jet F-94 Starfire, all-weather fighter F-104 Starfighter, multi-mission fighter, the "missile with a man in it" F-117 Nighthawk, "stealth fighter" attack aircraft F-16 Fighting Falcon, multirole fighter (Originally General Dynamics) F-22 Raptor, air superiority stealth fighter

The Lockheed Martin/Boeing F-22 Raptor is a single-seat, twin-engine fifthgeneration supermaneuverable fighter aircraft that uses stealth technology. It was designed primarily as an air superiority fighter, but has additional capabilities that include ground attack, electronic warfare, and signals intelligence roles.
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Lockheed Martin Aeronautics is the prime contractor and is

responsible for the majority of the airframe, weapon systems and final assembly of the F-22. Program partner Boeing Defense, Space & Security provides the wings, aft fuselage, avionics integration, and all of the pilot and maintenance training systems.

Patrol and reconnaissance Lockheed Hudson, maritime patrol/bomber PV-1 Ventura and PV-2 Harpoon, Maritime patrol/bomber P-2 Neptune, maritime patrol P-3 Orion, ASW patrol Lockheed U-2, reconnaissance (TR-1) SR-71 Blackbird, reconnaissance (A-12) (M-21) (YF-12) S-3 Viking, patrol/attack YO-3A Quiet Star

Missiles Polaris Poseidon Trident

Space technology X-7 X-17 L-301 Corona Agena Apollo Launch Escape System Hubble Space Telescope

Sea vessels Sea Shadow

Market share
At January 31, 2011, we had 36,328 holders of record of our common stock, par value $1 per share. Our common stock is traded on the New York Stock Exchange (NYSE) under the symbol LMT. Information concerning the stock prices based on intra-day trading prices as reported on the NYSE composite transaction tape and dividends paid during the past two years is as follows:

Common Stock Dividends Paid Per Share and Market Prices Dividends Paid Per Share Market Prices (High-Low) Quarter First Second Third Fourth$ Year 2010 $ .63 $ .63 $ .63 $ .75 $ 2.64 2009 $ .57 $ .57 $.57 $.63 $ 2.34 2010 $ 87.18 $73.61 $87.06 74.36 $76.34 68.19 $73.70 67.68 $ 87.18 $67.68 2009 $ 85.90 $57.41 $87.06 65.21 $ 82.92 72.20 $79.65 67.39 $ 87.06 $57.4

Organization
Our corporation, headquartered in Bethesda, Md., is organized around our core business areas - Aeronautics, Electronic Systems, Information Systems & Global Solutions, and Space Systems. Enterprise Operations LMC Properties, Inc. Lockheed Martin UK (United Kingdom) Advanced Technology Laboratories Center For Innovation

Aeronautics Business Area Aeronautics - Lockheed Martin Aeronautics Company is known for building the finest military aircraft in the world. This recognition was earned through relentless research and development of high-performance aircraft and by continuously seeking innovative and low-cost design and manufacturing strategies.

Electronic Systems Business Area Lockheed Martin Canada - Lockheed Martin Canada is a highly diversified global enterprise principally engaged in the research, design, manufacture and integration of advanced-technology products. The company is a leader in systems integration, software development and large scale program management, and is Canada's premier supplier of electronic defence and surveillance systems. Primary capabilities encompass the integration and management of complex computer-based electronic systems; the design, manufacture and supply of military-standard computers and electronic warfare, sonar and security systems; and the provision of life cycle support for major platforms.

MS2 - MS2 provides surface, air and undersea applications on more than 460 programs for U.S. military and international customers. The same expertise we provide to military customers is being applied to increase capabilities of U.S. and international civilian agencies. Our vision for MS2 is to set performance standards for our customers worldwide, every day with the best people, best systems, and best services.

Missiles & Fire Control - Missiles and Fire Control develops, manufactures and supports advanced combat, missile, rocket and space systems for customers that include the U.S. Army, Navy, Air Force and Marine Corps, NASA; and dozens of foreign nations. We have four principle product categories that correspond to vital capabilities we provide our warfighters in their defining moments.

Global Training and Logistics - Lockheed Martin Global Training and Logistics is the leading supplier of training and logistics solutions. From our manufacturing facility in La Mesa, Mexico to our training schoolhouses world-wide, our story is one of diversity, technology, solutions and flawless execution.

Sandia Corporation (Sandia National Laboratory) - Sandia is a governmentowned/contractor operated (GOCO) facility. Sandia Corporation, a Lockheed Martin company, manages Sandia for the U.S. Department of Energy's National Nuclear Security Administration. We seek collaborative partnerships on emerging technologies that support our mission.

Information Systems & Global Solutions Business Area Information Systems & Global Solutions - Comprised of 40,000 highly skilled professionals, Lockheed Martin Information Systems & Global Solutions (IS&GS) brings together the full range of Lockheed Martin's information competencies with an expansive global delivery capability. With more than $10 billion in sales, IS&GS is a leading federal services and Information Technology contractor with a strong heritage of delivering world-class solutions and delivering advanced technology across a broad spectrum of domains. IS&GS is organized into three reporting units: Mission Solutions, Information Systems and Global Solutions.

Space Systems Business Area Space Systems - Space is a demanding environment. But with systems built by Lockheed Martin, space is where the future takes flight, through partnerships that raise global communications, weather forecasting, space exploration and national security to new levels. Delivering vital space capabilities is all a question of how. And it is the how that makes all the difference. Joint Ventures: United Launch Alliance United Space Alliance