From networking to nanotechnology.From radar to rocket fuel. With hundredsof research and development projectsspanning a broad spectrum of technolo-gies and lines of business, LockheedMartin’s R&D approach appears to be ascomplex as the challenges it tackles.

But look more closely, and you’llsee a carefully considered portfolio ofprojects that are designed to advance anoverarching strategy.

“Our research and developmentportfolio reflects what we are as aCorporation,” says Jack Hammond, vicepresident of technology. “We are prima-rily an integrator of high technologies.We can’t do everything ourselves, sowe have to be good technology buyersand good technology developers —

and we have to be smart enough toknow what we want to buy and whatwe want to make.”

That “smart” approach to R&Dhas enabled the Corporation to becomeincreasingly effective at sharing ideasand new technology development acrossmultiple domains, coordinating at boththe business area and corporate levels. It includes pursuing internally and cus-tomer-funded projects, partnering withoutside laboratories and universities,and staying current on the latest break-throughs and game-changing ideasaround the world.

All of this activity results in a corporate-wide collection of more than500 projects and programs that can be

May 2005

Volume 11, No. 5

www.today.lmco.com

IRADical ConceptsCorporate-wide research and development approach balances near-term payoff with long-term vision

Lockheed Martin defines diversity as one teamthat encourages the individuality of eachemployee to achieve mission success. But diver-sity is more than just a buzzword; it’s a commit-ment that business areas across the Corporationare taking seriously.

The Diversity Maturity Model (DMM),introduced last fall, tracks the progress LockheedMartin has made in building the most inclusivework environment possible. As an enterprise, thecompany now has a consistent benchmark with acommon set of criteria to measure maturity levelsand identify opportunities for improvement.

Lockheed Martin as a Corporation receivedan initial DMM assessment of 2.0 or Enlightenedon a scale of 1-5 that also included 1) Foundational,3) Embraced, 4) Integrated, and 5) InstitutionalizedInclusion. This fall, the company will complete asecond DMM assessment, and the overall corpo-rate objective is to move the bar to 2.5.

Model BehaviorBusiness areas turning DiversityMaturity Model results into roadmap to success

4

Four Lockheed Martinemployees are namedon list of 50 MostImportant Hispanics.

HispanicTop 50

5

Corporation looks toreview historical andmemorabilia items andto identify archives.

HistoricalProject

6

Aeronautics Companyteam earns first placein third annual EthicsFilm Festival.

Ethics FilmFestival

7

Presidential award-winner Tamara Koldashares enthusiasm formath and science.

Career Path

7

Moorestown, N.J.,student wins nationalSpace Day T-shirt ArtContest.

NationalSpace Day

10

Lockheed MartinMerit Scholarshiprecipients for this yearare announced.

ScholarshipsAwarded

10

Maritime Systems &Sensors presidentreceives award formaritime contributions.

NimitzAward

12

Corporation sponsorsspecial Stamps TakeFlight exhibition atSmithsonian.

SpecialStamp

International PrideChile and Lockheed Martin share commitment to Chilean F-16 program

For Chilean air force officials, the nation’s first F-16 to roll off of the assembly line at LockheedMartin Aeronautics Company in Fort Worth,Texas, last month represented a milestone in a newera of modernization for an air force with a proudtradition and a bright future.

For LM Aero, the completion of the first of 10Chilean F-16s represented an important step in wel-

coming another nation to the F-16 family, and theemotion was no less sincere for LM Aero programleaders than for the Chilean officials.

“We understand the importance of this pro-gram to Chile, and we recognize the tremendousamount of effort and investment that this repre-sents for the Chileans,” says John Balderston,Chile F-16 program director. “They are a greatcustomer. They’re incredibly resourceful, hard-working and professional. And I share the pride

See R&D p. 2

See F-16 p. 8

See Diversity Maturity Model on p. 9Lockheed Martin Aeronautics Company delivers thefirst of 10 F-16 aircraft to Chile (above).

An example of R&D work in the area called disruptive technologies is the developmentof microelectromechanical systems at Lockheed Martin Advanced Technology Centerand Sandia National Laboratories. Here, Sandia researcher Doug Adkins examines one-quarter cubic-inch mini-robots weighing less than one ounce.

thought of as the R&D equivalent of anindividual investment portfolio, one thatcontains a balance of investments withvarying risk and return potential.

Many projects — the majority, infact — are aimed at delivering direct,predictable results, just as an effectiveinvestment portfolio is anchored by asolid group of core assets. Other effortsare targeted at longer-range payoffs innew products that might not yet beclearly defined — investments withhigher risk but also higher return poten-tial. And yet another set of projects —the smallest in number but with thepotential to radically alter the competi-tive landscape — is aimed at maintain-ing contact with the leading edge offuturistic technology development.

“We see three basic types ofR&D,” Hammond explains. “One isrequirements pull, where we have adefined set of requirements that youneed and they’re pulling you to improvean existing product or system.”

The speech-recognition technologythat is being incorporated into the F-35Joint Strike Fighter is one example. WhenLockheed Martin Aeronautics Companyidentified a need for the technology, itcontracted with the Lockheed MartinAdvanced Technology Laboratories(ATL) in Cherry Hill, N.J., to develop it.

“Another area is further out andmore strategic,” Hammond continues.“That’s technology push, where we’redeveloping technologies that couldpotentially benefit many different prod-ucts and lead to new ways of thinkingabout our products and the capabilitieswe can offer our customers.”

At Lockheed Martin IntegratedSystems & Solutions (IS&S), forinstance, R&D investments over thecourse of several years led to the devel-opment of an information integrationarchitecture, which in turn led to thecapture of three contracts related tohomeland security and intelligence.

“And the third area, which is evenfurther out, is what we call disruptivetechnologies,” Hammond says. “Wedon’t know yet how they might changefuture products, but we do know that weneed to be prepared for them if we wantto continue to be an industry leader.”

Two examples are the work beingdone in microelectromechanical systems

(MEMS) and nanotechnology atLockheed Martin Advanced TechnologyCenter (ATC) in Palo Alto, Calif., andSandia National Laboratories, managedby Lockheed Martin for the Departmentof Energy, in Albuquerque, N.M.

R&D projects are funded in twoprimary ways: with Lockheed Martindollars (independent research and devel-opment projects, or IRADs) and withcustomer dollars (contract research anddevelopment projects, or CRADs.)

Because the Corporation strives totie its R&D investments as closely as pos-sible to its business plan, the majority of

IRAD funding is controlled and investedby the business areas that are closest tothe programs and have the most intimateknowledge of customer needs.

Nevertheless, many technologieshave applications across all businessareas, and that’s where the corporateEngineering and Technology organiza-tion provides the high-level guidancethat maximizes information sharing andavoids program duplication.

Top-level representatives from allbusiness areas are members of the cor-porate Research and Technology Board,which provides a forum for businessareas to review each others’ IRADbudgets and coordinates R&D activity

to ensure it is non-repetitive and alignedwith the Corporation’s strategic plan.

In this way, the overall R&D program is similar to the approach theCorporation has taken in the area of horizontal integration of military commu-nication, information and battle manage-ment systems, which touches many linesof business in nearly every business area.The work of the Corporation’s 17Technology Focus Groups also helpsguide R&D investment.

The many IRAD programs that areunderway at any given time are tracked inthe corporate-wide Technology Investment

Plan on the Lockheed Martin Intranet.The TIP repository is a valuable resourcenot only for the technical community,but also for competitive bid teams inter-ested in learning where applicableresearch is being performed anywhereacross the Corporation.

“Just like the rest of theCorporation, the IRAD philosophy hasbecome much more one-company ori-ented,” Hammond says. “We haveincreased the level of cooperation.”

In addition to coordinating IRADefforts, the corporate Engineering andTechnology office also funds key R&Defforts that span business areas. The fund-ing is provided through several initiatives.

One is the Shared Vision Program,through which the Corporation contractswith the GE Global Research Center inNiskayuna, N.Y., and with SandiaNational Labs. Both labs have areas ofexpertise and capabilities that aren’tavailable within the Corporation andwould not be cost-effective to develop.

Another vehicle managed at thecorporate level is the University GrantsProgram, which provides grants to university researchers to perform basicresearch that can then be transitionedinto product applications.

The Corporation also funds severalTransformational Technology Programseach year, and recently it has launched a Disruptive Technologies Programthrough which it is funding research intothose emerging technology areas withpotential to greatly alter the playing fieldin the Corporation’s lines of business.

While the corporate level providesoverall R&D guidance and coordination,the business units retain a high degree ofcontrol over the amount of funding theyallocate to R&D and the way theyadminister their R&D programs. With theexception of Information and Technology

Systems, whose developmentwork is managed differently,here’s a brief overview ofhow R&D is handled in eachbusiness area:

High-Profile SuccessTechnology research anddevelopment at LM Aero ismanaged by the company’sAdvanced DevelopmentPrograms (ADP) group, alsoknown as the Skunk Works,in Palmdale, Calif. Theemphasis of the LM Aeroapproach, says Neil Kacena,deputy vice president at ADP,is to invest in IRAD programsthat bring new technologies tothe point that they merit cus-tomer-funded research.

Sometimes those IRADprograms don’t pan out, butthe tolerance for risk that isthe heritage of the ADP grouphas enabled the organizationto achieve many memorablesuccesses. The most recentexample is the shaft-drivenlift fan that turned out to be amajor contributor to the F-35Joint Strike Fighter win. Theidea for the lift fan originatedin 1990 with two engineerswho persuaded managementto fund an IRAD long beforethere was a JSF program.

While there have beenhigh-profile successes(stealth technology devel-oped for the F-117 is anotherone), the smaller IRAD pro-grams also add up to bigresults. Dozens of technolo-gies now in use on the JSFprogram began with IRADprograms over the past 10years, Kacena reports.

R&D

Continued from p. 1

A recent example of IRAD success is the shaft-driven lift fan that turned out to be a major contributor to the F-35 Joint Strike Fighter win.

“…many technologies have applications across all

business areas, and that’s where the corporate

Engineering and Technology organization provides the

high-level guidance that maximizes information sharing

and avoids program duplication.”

2

In addition to its core group atPalmdale, the ADP organization hasImprovement and Derivative Teams co-located with each major LM Aero pro-gram, distributed across the three Aerosites. The I&D teams strengthen theresearch and development organization’sties to the programs and help ensureIRAD dollars are being targeted in areaswhere they can have the most impact.

IRAD programs growing out ofthose areas tend to be requirements pull,but at the same time, Kacena says theADP group recognizes the need toensure a certain portion of the com-pany’s research dollars are allocated totechnology push.

“Most institutions that focus oninnovation understand that requirementpull is infinite,” he says. “It will alwayseat up all of your resources, because theneed is near-term and easy to identify.But if you want to capture an edge ininnovation that will ultimately allow youto identify and win programs in thefuture, you have to maintain a commit-ment to investing in technology push.” AtLM Aero, that commitment represents 30percent of the company’s IRAD dollars.

Another emphasis of LM Aero’sR&D approach is flexibility. The aero-nautics industry is so dynamic that proj-ects approved for funding at the start ofthe year are continually re-evaluated up

until the time they area ready to begin.In most years, the number of anticipatedCRAD opportunities increases by fourto six times over the original estimate.The IRAD portfolio is then adjusted tosupport and enhance the continuallyevolving CRAD opportunities list.

“That gives you an idea of howdynamic the front end of our businessis,” Kacena says. “And we have to beflexible to stay tightly aligned with it.”

Extensive DiversityMore so than other Lockheed Martinbusiness areas, Electronic Systems’companies have extensive diversity intheir lines of business. As a result, indi-vidual companies within the businessarea have greater responsibility at thelocal level for identifying and fundingR&D priorities.

However, the Electronic Systemsbusiness area (ESBA) recently assignedAdvanced Technology Laboratories,

which is part of its organization, to playa greater role in monitoring the overalldirection of those efforts.

“Our role is to coordinate, but notdirect ESBA research and development,”says Jim Marsh, ATL’s director. “Wewant to eliminate redundancy and addrigor into tying IRADs into the businessarea’s strategic focus. The ultimate goalis a sharper competitive edge that a moreefficient enterprise provides.”

ATL also has a portfolio of busi-ness of its own, consisting primarily ofprograms with the Defense AdvancedResearch Projects Agency (DARPA). Toprepare itself to compete successfully forDARPA contracts, ATL invests in IRADprograms and partners with universities.

“DARPA’s role is to develop tech-nologies for the Services that are toorisky for them to undertake,” Marshexplains. “ATL parallels that approach.We look farther out than the business

units and bring technologies to the pointwhere they enable those definingmoments for our defense and LockheedMartin customer communities. Our jobis to take university research, add inno-vation and application experience, andtransition the result to the field.”

Using this approach, ATL, whichspecializes in software development,recently developed “advanced reflectivemiddleware software,” which is a keyelement of the technology systemsaboard the Navy’s DD(X) next-genera-tion destroyer. The program that pro-duced the software was DARPA funded.ATL also has recently developedadvanced user-interface software for theLockheed Martin-developed AegisWeapon System with funding from theNaval Research Laboratories. In eachcase, ATL R&D is transitioningenabling, competitive technology intokey Lockheed Martin programs.

Lockheed Martin product pro-grams make the best use of ATL as aresource when they incorporate theorganization at the competitive bid level,Marsh says. “When we can lay a 75-yearlegacy of research, development, andintegration successes along side thesuperior technology of this Corporation,the result is usually a win for our cus-tomer and for our shareholders.”

“We look farther out than the business units and bring

technologies to the point where they enable those

defining moments for our defense and Lockheed Martin

customer communities.”

3

(Above) Electronic Systems’Advanced TechnologyLaboratories has developedadvanced user-interface software for the LockheedMartin-developed AegisWeapon System.

(Upper Right) IRAD programshave been instrumental inSpace Systems’ developmentof several commercial and military satellite programs,including the Mobile UserObjective System next-genera-tion satellite communicationssystem depicted here.

(Right) Research and develop-ment at Lockheed MartinIntegrated Systems andSolutions resulted in develop-ment of an information inte-gration architecture that wasinstrumental in capturinghomeland security-relatedcontracts.

See R&D p. 4

Disciplined ApproachAlthough IS&S has a focused mission,its distribution over 30-some sitesrequires the business area’s researchorganization to have a disciplinedapproach to managing its research anddevelopment program.

Beginning in early July, theorganization begins collecting IRADproposals that are prioritized andassembled into the beginnings of a pro-gram in August. Then, five teams evalu-ate the proposals for technicalfeasibility, alignment with businessstrategy, potential return on investment,potential for customer funding, andalignment with Lockheed Martin’s inte-grating concepts.

This “scrubbed” TechnologyInvestment Plan is then incorporated in

the business area’s operating plan forthe upcoming year and continues to beadjusted and modified. At the beginningof the year, approved IRAD programsreceive 10 percent of their funding toget started, but the full funding is with-held until a formal program plan is sub-mitted by the end of January.

The composition of the overallIS&S research and development planclosely follows the portfolio approach,says Larry Alexander, who heads thebusiness area’s R&D organization.

“About 60 percent of our IRAD isexpected to have impact on a programwithin 12 months,” Alexander explains.“But we also want to have some longerrange investments that might not pay offfor one to three years. That’s where weusually bring in the universities.”

IS&S also makes use of theShared Vision Program, working with the GE Global Research Centerand Sandia National Laboratories, andit has set up a Radical TechnologyInnovation Center to push beyond currentthinking and identify technologies thatcould someday make existing IS&Sproducts obsolete.

Another unique element of theIS&S research and developmentapproach is its Creative DevelopmentProgram, which twice a year solicitsemployee ideas that can be developedinto products and sold. The program ispart of the business area’s Employer ofChoice initiative.

As it earmarks IRAD money,IS&S is careful to be aware of the latestwork being done throughout the infor-mation technology industry. AsAlexander points out, nearly all of thetechnologies utilized by IS&S comefrom the commercial world. IS&S inte-grates those technologies in new andpowerful ways.

“The commercial world is pouringhundreds of billions of dollars intoinformation technology, so we don’twant to invest in something and then sixmonths later see that you can buy it atComp USA,” Alexander says. “We needour people to stay current in what thesecommercial investments are, becausemost of our systems are made up ofthose commercial components.”

Focused DevelopmentLike the other business areas, SpaceSystems has developed an approach toresearch and development that reflectsthe unique aspects of its business. Mostof the business area’s development isfocused on near-term “tactical” technol-ogy, but its goal is to invest a minimumof 15 percent on strategic R&D.

R&DContinued from p. 3

4

Dozens of technologies now in use on the Joint Strike Fighter program began with IRAD programs over the past 10 years.

Four Lockheed Martin employees are named on the list of the 50 Most Important Hispanics inTechnology and Business by the editors of HispanicEngineer and Information Technology magazine. Therecipients are Frank Figueroa, vice president, BusinessManagement & Facilities Services and Chief FinancialOfficer at Sandia National Laboratories; Sid Gutierrez,director, Systems Assessment and Research at SandiaNational Laboratories; Lenny Martinez, vice president,Manufacturing Systems, Science and Technology, atSandia National Laboratories; and Ralph Tourino, vicepresident, Space Support Programs, Lockheed MartinIntegrated Systems & Solutions. The awards are basedon leadership qualities and engineering excellence.More information on these technology leaders can befound on the intranet at http://pageone.lmco.com in the“LM Today Newsletter” section. In the photos are,from left, Tourino; Figueroa and Gutierrez on theSandia campus; and Martinez in his office.

Employees Named InHispanic Top 50

See R&D p. 12

5

The Glenn L. Martin Aviation Museum in Baltimore, Md., is home to an extensive collection of historical data, from photographs andfilm to aircraft and production tools.

All In Good TimeCorporation seeking historical and memorabilia items

The story of Lockheed Martin is a storyof people who were the first in the skieswith flying machines, whose dedicationhelped to win a world war, and whohave served as sentinels of the ColdWar and pioneers of the Space Age.

It’s a world of rocket pioneers,supersonic recordbreakers, electronicsinventors and interplanetary travelguides. It’s also a world of routine dailyactivities and events that, with the pass-ing of time, can symbolizean era or crystallize amoment in time.

If everything old isnew again, then LockheedMartin is a treasure trove oftime-honored material thatchronicles the past century.

In an effort to captureand commemorate the significant achievements of nearly 100 years, theLockheed Martin board ofdirectors has requested areview of historical andmemorabilia items relatedto the Corporation’s people,key products, programs and events.

“Our overall objective is to pre-serve and share the rich history ofLockheed Martin,” says Frank Menaker,the Corporation’s senior vice presidentand general counsel, who has beenappointed to lead the project. “We arelooking for notable historical docu-ments, records, hardware and similarmaterials of legacy and heritage.”

“Since the merger of Lockheedand Martin Marietta in 1995, we havebeen focused on the present and futureof our company,” Menaker says.“Having matured to a healthy, strongenterprise, we want to continue to look

forward, but also look back at the inno-vation and integrity of the hundreds ofthousands of employees who have con-tributed to the corporation we are today.We want to preserve our powerful his-tory, and to build on it.”

Shelly Paup, director, CorporateInternal Audit, who is coordinating theeffort, says the project has several keyelements. First is locating these types ofhistorical or educational materials.

Secondly, the materials will need to bereviewed. Thirdly, locations will beidentified for the possibility of settingup facilities, museums or educationalcenters that showcase the material.

“The project is now in anexploratory phase,” Paup said. “Wewant to understand the kinds of histori-cal materials that are out there, andwhat is already in our archives.”

Paup says the Corporation islooking for artifacts from all of the her-itage companies, such as FordAerospace, GE Aerospace, GeneralDynamics, IBM, RCA, and Goodyear,

to name a few, in addition to Lockheedand Martin Marietta.

Some valuable items have cometo light, including correspondence andartifacts about legendary pilot AmeliaEarhart, aviator and businessmanHoward Hughes, and famed aerospacedesigner Clarence “Kelly” Johnson.

One of the most exemplarymemorials is the Glenn L. MartinAviation Museum located near LockheedMartin Maritime Systems & Sensors inBaltimore, Md. The museum has 13 historic aircraft, thousands of originalmotion picture films, plans, documents,research models, aircraft tools, and a collection of more than 200,000 aviation

and company photographs. A nonprofit organization, themuseum receives support fromLockheed Martin.

Paup said the membersof the memorabilia projectwill study existing collections,and then make determinationsof the best ways to exhibitnew materials.

The Lockheed Martinretiree community is a strongsupporting element of theeffort, Paup said.

Employees who wouldlike to volunteer informationabout their own personal orcompany memorabilia areencouraged to contact the

appropriate person in the box at right.Material reported by the end of Junewill be reflected in a presentation to theboard of directors scheduled for August.

“Of course, the task of identifyingsignificant items will be ongoing,”Paup said. “This is just the beginning.Lockheed Martin will continue to havea place in history.”

“Having matured to a healthy, strong

enterprise, we want to continue to look

forward, but also look back at the

innovation and integrity of the hundreds

of thousands of employees who have

contributed to the corporation we are

today. We want to preserve our powerful

history, and to build on it.”

For more information on theCorporation’s memorabilia projectand to share items of interest,

contact the person listed for your busi-ness unit in the box at right.

Contact Information For Corporation’sMemorabilia Project

To submit information about per-sonal or company memorabilia,contact the person representing yourbusiness area or business unit fromthe list below.

Aeronautics

Fort WorthJoe Stout (817) 763-4086MariettaJeff Rhodes (770) 494-3895PalmdaleSteve Justice (661) 572-7650) andDianne Knippel (661) 572-4153

Corporate

Jim Denapoli (410) 468-1020Shelly Paup (301) 897-6928Barbara Reinike (301) 897-6601Gail Rymer (301) 897-6934

Integrated Systems & Solutions

Emily Donavan (301) 240-6691

Information & Technology Services

Wendy Owen (856) 486-5126 (all)Aircraft & Logistics CentersDavid Jewell (864) 422-6303 Systems ManagementJeanine Zeitvogel (856) 810-5130

Electronic Systems

Maritime Systems & SensorsKate Dunlap (330) 796-2122 (MS2-Akron)Sheri Grone (651) 456-2210 (MS2-Eagan)Fred Henney (703) 367-4440 (MS2-Manassas)Roger Mason (410) 682-0330 (MS2-Baltimore)Ken Ross (856) 722-6941 (MS2-Moorestown)Mike Stark (315) 456-1699 (MS2-Syracuse)Missiles and Fire ControlJohn Owen (407) 356-5224Joy Sabol (407) 356-2207 Simulation, Training and SupportNettie Johnson (407) 306-6861Systems Integration-Owego Mike Drake (607) 751-4524Transportation and SecuritySolutionsAnna Dipaola (301) 640-3336

Space Systems

Advanced Technology CenterAmy Burks (650) 424-2883 Commercial Space SystemsBarry Noakes (215) 497-2008Integrated Launch ServicesLiz Prestridge (571) 633-7478Space Systems—DenverMartha Hirschfield (303) 971-4068 Space Systems—SunnyvaleKen Popovich (408) 742-1757 andRuss Underwood (408) 742-0933

The judges have reached their decision. First place in the 2005 Ethics Film

Festival goes to a team fromAeronautics Company in Marietta, Ga.,for their entry, “The Eth-X Files: Caseof the Disappearing Aircraft Parts.”

The video, a spoof on the televi-sion show “The X-Files,” depictsAgents Fax Folder and DonnaLook Silly

interviewing suspected thief Lars Perp. As in the TV show, Agent Folder“suspects extraterrestrials” in the theftof aircraft parts and tools from the fictional “Lochness Aero” plant.

“We were excited to be in thefinals and elated to have won,” saidKaren Butler, one of the winning teammembers. “The Ethics Film Festival was

a great team-building experience, witheach member having an important rolein the making of the film.”

Butler, a software verification leadon the C-27J program, developed thevideo’s concept, wrote the script anddirected the action. “Our topic of theftin the workplace is a serious problem in business today,” said Butler. “Our villain in the video takes this concept tothe extreme and highlights the problemin a humorous way.”

Valerie Gressett, who played therole of Agent Silly in the video, joinedButler at a recognition event held

recently in Bethesda, Md., toaccept the first place awards onbehalf of their team. Additionalteam members were MarkCaston, Kevin Craddock, DavidMarks, Brian McKnight andTom Wetherall.

“Making this video wasnot only a good opportunity to do something outside of my usual job, it offered a newoutlet for creativity and achance to collaborate with a dif-ferent group of people in anunusual way,” said Gressett,who also supports the C-27J as a program integrator.

“The videos in this compe-tition reflect the perspectives ofthe ‘troops at the workinglevel.’ To me, this expands theethics message that is communi-cated each year in training,something that engages us, notonly because of the humor, butbecause of the realism withwhich we can all identify.”

The Ethics Film Festivalis an annual event in which

employees are invited to produce shortvideos containing an ethics theme.Employees must use their own time andresources, away from company or cus-tomer facilities. Independent judgesevaluate the entries and select the topthree videos based on creativity and rel-evance to ethics. The top three entrantsare invited to attend a recognition eventheld in Bethesda where prizes areawarded.

The other finalists were teamsfrom Missiles and Fire Control in Ocala,Fla., and their entry “The EthicsApprentice,” and from IntegratedSystems & Solutions in San Jose, Calif.,with “Ethics Affects All of Us.”

Honorable mention went to theAeronautics Company in Fort Worth,Texas, team for “Ethicollar 5000,” theLockheed Martin Canada team for itsentry “Second Best,” and thefather/daughter team of Walter andAddie Osadciw for their entry “TheWork Ethic.” Walter Osadciw is anemployee at Maritime Systems &Sensors in Syracuse, N.Y.

“We were very impressed with thequality of the videos, and all partici-pants are to be congratulated,” saidMaryanne Lavan, vice president, Ethicsand Business Conduct. “We want toencourage all employees to considerentering the next Ethics Film Festival.”

The 2006 film festival will kickoff in November 2005, with entries duein mid-February of 2006.

And The Winner Is…Third annual Ethics Film Festival showcases employees’ talents

Center Of Innovation Focuses On Creative Solutions For Defense And Homeland Security

The Corporation formally opened its Center for Innovation in April. TheCenter is a unique, collaborative laboratory that is intended to serve as acritical new asset in the nation’s war on terrorism, homeland defense andtransformation of other government operations. Located in Suffolk, Va.,

For contest rules, helpful hints, an entry form, or to view prior entries, visit the

Ethics Film Festival Web site athttp://ethics.corp.lmco.com/ethics/filmfestival.html.

the Center has proximity and connectivity to a number of military commands,national security and other government customers. More information on theCenter for Innovation can be found on the intranet at http://pageone.lmco.comin the “LM Today Newsletter” section.

First place in the 2005 Ethics Film Festival goes to a team from Aeronautics Company in Marietta,Ga., for their entry, “The Eth-X Files: Case of the Disappearing Aircraft Parts.” Shown are teammembers, from left to right, Mark Caston, Karen Butler, Tom Wetherall, Valerie Gressett and BrianMcKnight. Not shown are David Marks and Kevin Craddock.

6

Editor’s Note: Career Paths appearsperiodically featuring individuals withunique, interesting and successfulcareers at Lockheed Martin.

If information is a wonderful thing —and most people would agree that it is— we certainly live in wonderful times.Never before have we been able tomeasure so many things, generate somuch data, and provide access to somuch information as we do today.

But making sense of all this infor-mation is a whole different matter, andthat’s where Lockheed Martin’s TamaraKolda comes in. A researcher at SandiaNational Laboratories’ Livermore, Calif.,campus, Kolda is a bright new star in the constellation of mathematicians whoare helping a wide array of scientists —and even non-scientists who simply use search engines — to analyze andunderstand data more effectively.

Still in her 30s, Kolda has alreadydeveloped several new computationalalgorithms that are in widespread use,and she is currently working on mathe-matical techniques that are useful infinding patterns and relation-ships in what may seem likerandom data, something thathas great potential to assisthomeland security efforts, forexample. She has authored orco-authored dozens of journalarticles, conference papers,and technical reports.

The scientific communityrecognized Kolda for the qual-ity of her work by selecting herfor a Presidential Early Career Award forScientists and Engineers. She was one ofonly 57 young scientists to receive theaward in 2004.

Kolda has been fascinated withmathematics since childhood, when sheattended several summer camps gearedtoward science, including one sponsoredby NASA at the Goddard Space FlightCenter. But she adds that she didn’t decideon a college major until she realized that

she kept filling up her schedule withmath courses. Since then, her career hasbeen anything but happenstance.

En route to earning a Ph.D. inapplied mathematics from theUniversity of Maryland in 1997, shejoined professional organizations andattended many conferences. She didn’tjust show up, but rather made it a pointto introduce herself to leaders in thefield and to tell them a little bit abouther and her interests, so they would bemore likely to remember her.

The approach worked. “I went tomy first professional conference in 1996,and many people I met there say theyremember me from that conference,” shesays. “When you introduce yourself andput yourself in context — not just yourname, but where you’re from and whatyou do — and then send a follow up e-mail reminding them that you met themand again putting yourself in context,that’s an amazingly effective tool forgetting people to remember you.”

That’s one of the tips that Koldapasses along to the next generation ofup-and-coming young mathematicians in

her role as a mentor to 12 post-doctoralstudents and interns at Sandia, and as afeatured speaker at universities, includ-ing the University of Maryland, NewYork University, Princeton and Stanford.

“Sometimes I give practicaladvice about how to meet people whosepapers you’ve read, and sometimes Ishare stories about my career,” she says.“Mostly I’m just supportive of them andI listen to what they’re doing.”

She also contributes to her fieldby participating in professional organi-zations. She’s secretary of the Societyfor Industrial and Applied Mathematics(SIAM) Activity Group on ComputationalScience and Engineering and serves on

the editorial board of theSIAM Journal of ScientificComputing. She also is activein the Association for Womenin Mathematics.

Setting an example issomething that comes natu-rally to Kolda because of theenthusiasm she has for herwork. A principal member of the technical staff, Koldacame to the Computational

Sciences and Mathematics ResearchDepartment at Sandia-California, aDepartment of Energy facility operatedby Lockheed Martin, in 1999, aftercompleting a postdoctoral fellowship atOak Ridge National Laboratory.

“There’s an excellent group ofresearchers here, and the quality of thework being done is outstanding,” shesays. Plus, she has been able to seedirectly the value that her work has for

researchers and scientists in a variety of fields.

For example, engineers often arefaced with the challenge of needing tooptimize a certain aspect of a system,such as safety. Many variables affectsafety, from system design to strength of materials, and Kolda has written software that automatically changes theparameters and “searches in the designspace” for the optimal combination.

As her profile has risen in her peer community, Kolda has found thatshe no longer has to exercise her tech-niques for meeting leaders in her field,because in most cases she already knowsthem. But that doesn’t mean there stillaren’t important new names to remember.

“Now I find myself meeting youngpeople and trying to remember who theyare,” Kolda says. “They’re the up-and-coming people, and it won’t be longbefore they’re the people to know.”

7

Formula For SuccessPresidential award-winner Tamara Kolda shares enthusiasmfor math and science

C A R E E R P A T H S

“Now I find myself meeting young

people and trying to remember who

they are. They’re the up-and-coming

people, and it won’t be long before

they’re the people to know.”

Moorestown, N.J., Student Wins National Space Day ContestIan DiMedio, a fourth-grade student at Moorestown Upper Elementary School inMoorestown, N.J., was named the winner of this year’s national Space Day T-ShirtArt Contest sponsored by Lockheed Martin. In the photo at bottom left, he presentshis design, which will appear on the official 2005 Space Day t-shirt. At top left, hisgrandfather Ronaldo DiMedio shares the excitement of winning. More than 800 students in 10 states participated in the contest, which was judged by the nationalSpace Day program. Students in grades four through six submitted artwork thatreflected the theme “Return to the Moon.” The artwork of the seven finalists will

be displayed at the 2005 Space Day celebration on May 5 atthe National Air and Space Museum’s Steven F. Udvar-HazyCenter in Chantilly, Va. As the overall Space Day T-Shirt contest winner, DiMedio will receive an all-expenses paid trip to the celebration, where he will be recognized. Space Day,an educational initiative established by Lockheed Martin in1997, uses space-related activities to inspire and prepare youngpeople to pursue careers in science, technology, engineeringand mathematics.

For more information aboutTamara Kolda, as well as links to her articles and papers,

visit her homepage athttp://csmr.ca.sandia.gov/~tgkolda.

Tamara Kolda, a researcher at Sandia National Laboratories’ Livermore, Calif., campus,is helping a wide array of scientists and engineers to analyze and understand data moreeffectively.

they feel for what this program representsfor their country.”

That pride was evident in theremarks of Chile’s Minister of NationalDefense Jaime Ravinet, who joinedother Chilean and U.S. officials in cele-brating the completion of his country’sfirst F-16.

“This is an important moment inthe history of the national defense ofChile,” Ravinet said. “The state-of-the-art capabilities of the F-16 will con-tribute significantly to the modernizationof our armed forces. It will also provideinteroperability with the F-16s of othernations. This program also benefits ourcountry technically through the industrialcooperation program.”

The Chilean success story is anexample of how LM Aero’s F-16 pro-grams have continued to grow aroundthe world by recognizing the uniqueneeds, challenges and resources of eachcustomer in each region. It also hasreflected the importance of teamworkbetween those customers, the U.S. AirForce, and Lockheed Martin, in execut-ing foreign military sales programs.

Of the 24 nations that have pur-chased F-16s, 14 have become repeatcustomers, notes Rod Rodriguez, LMAero’s business development directorfor fighter aircraft in South America.

“The number one salesman for theF-16 is the F-16 itself. It’s the world’sstandard,” Rodriguez says. “But everycountry is different, even within regions,and you have to understand and appreciatethose differences. South America, for

example, is not monolithic,and we have great respectfor each country’s cultureand priorities.”

Chile, for instance,places high importance on professionalism in allaspects of its businessdealings. The nation isamong the most respectedin the world for its busi-ness transparency, a repu-tation it has earned throughits commitment tointegrity at all levels.

On the F-16 pro-gram, Balderston and histeam developed a strongworking relationship withthe Chilean Air Force offi-cials who maintain a pres-ence in the United Statesat Wright-Patterson AirForce Base in Ohio.

Developing Chile’sF-16 required close coor-dination, both with the customer and with industrysuppliers, on the development effort to incorporate Chile’s weapons and sensor systems and to customize theircockpit displays.

“This is very much a Chilean aircraft,” says Balderston, who took aSpanish language immersion course toimprove his communication skills withthe customer. “There has been a lot ofconstructive give and take, and theresults to date show the success of that dialogue.”

Following closely on the heels ofmajor F-16 development programs forGreece, Israel and the United ArabEmirates, the program has remained

solidly on schedule, and all 10 aircraftare now in production.

“We were able to incorporate lessons learned and work togetheracross engineering, manufacturing andthe business side to make this happen,”Balderston says. “The entire F-16 teamdeserves credit for this success.”

In the months ahead, the firstChilean F-16 will undergo flight testingto identify and fix any software issues.All 10 aircraft are scheduled for deliveryto Chile in 2006.

The delivery of the F-16s will comeapproximately nine years after Chileopened competition for the aircraft that

would be the flagship of its modernizedmilitary. Although there have been personnel changes for LM Aero over the years, the continuity of the program,drawing on many years of experience,has remained solid.

“These efforts can take a longtime, and that’s where our history andstability as a corporation become veryimportant to international customers,”Rodriguez says. “They know we’regoing to meet our commitments.”

8

F-16Continued from p. 1

Lockheed Martin UK opened advanced laboratory facilities at its UKIntegrated Systems site in Havant, Hampshire, in March. The SystemDevelopment Integration Facility will be used to develop and test futuretechnologies and systems for military mission and networked systems –and will support contracts that Lockheed Martin UK has with the Ministryof Defense. It will initially be used in the design, development and testingof a new open architecture mission system for the Royal Navy’s Merlin

helicopter, for which Lockheed Martin UK is the prime contractor and systems integrator. In the photo, from left, David Willetts, member ofParliament for Havant; Steve Ramsey, executive vice president, SystemsIntegration-Owego Helicopter Systems; and Ron Christenson, group managing director of Lockheed Martin UK Integrated Systems; discusstechnical capabilities at the high-resolution video wall.

Cutting-Edge Facilities Open In United Kingdom

For more information about theChilean F-16 program, contactRod Rodriguez at 817-777-9596.

June Shrewsbury, Aeronautics Company vice president for F-16 programs, at right, talks with Chile'sMinister of National Defense, Jaime Ravinet, at the ceremony to mark completion of the first F-16 produced for the Chilean Air Force.

9

The Sky’s The Limit For Engineer John MacGuireLockheed Martin Aeronautics Engineer John MacGuire has been named anEmployee of the Year by CAREERS & the DisABLED magazine for his profes-sional and advocacy efforts on behalf of people with disabilities in the workplace.In 1993, MacGuire, an experienced pilot of aerobatics aircraft, broke his back afterhis plane malfunctioned and crashed during a practice. Unable to walk again,MacGuire pursued his goal to return to aerobatic flying. Now, he donates the moneyhe receives for his performances to various charities, is a featured speaker on reha-bilitation, appears in an inspirational public service video and provides free floorplans he designed for his own handicapped-accessible home. More informationabout MacGuire can be found on the intranet at http://pageone.lmco.com in the“LM Today Newsletter” section. In the photos, MacGuire is shown at work,where his engineering expertise keeps him on advanced development programs,and heading out to fly his Clipped-Wing Piper Cub.

But how does the company plan onimproving the results? The first step is toformulate a strategy and encourage allareas to support diversity as a businessobjective at the local levels.

“When we leverage our diversity,we create excitement, energy and creativ-ity that provides a competitive advan-tage,” says Shan Carr, Lockheed Martin’svice president of Diversity and EqualOpportunity. “The business case fordiversity is clear.”

Across the Corporation, businessunits have taken their DMM results andturned them into action plans. “Creatingan inclusive and diverse work environ-ment is a team effort that will require allof the business units to work together,”says Carr.

While all business units are work-ing on response plans specific to theirneeds, the Corporation as a whole hasidentified three key focus areas —employee retention, customer focus and aproductive and innovative work climate.

Employee retentionThe DMM survey found a direct corre-lation between an employee’s feeling ofinclusiveness and that individual’s level of excitement in staying with thebusiness to develop a career and help the company grow. Business areas acrossthe enterprise are responding by creatingretention strategies to engage employeesand ensure they have every opportunityto succeed.

“Employee retention is the out-come of effective leadership,” saidKaren Gardner, the corporate retentionteam lead and regional HR director for Integrated Systems and Solutions.“Employees are the foundation of our business.”

Gardner’s team is utilizing exist-ing retention tools, such as the LearningManagement System and Total ValueWeb site in developing an overall reten-tion plan for the Corporation. “We wantemployees to know that their job ismore than a paycheck. We want them to feel valued and respected and to pro-vide them with the tools to succeed,”explains Gardner.

Customer focusThe DMM results also showed thathigher levels of diversity maturity

provide a competitive advantage.Diversity was a key aspect of securingthe win for the Corporation to providethe new “Marine One” helicopters.

“Thanks to the ability of ourdiverse population to think outside ofthe box, we were able to reach out in anew direction and take a differentapproach that helped us succeed,” saysSteve Ramsey, System Integration-Owego’s executive vice president forHelicopter Systems.

Ramsey created Team US101, adiverse group of employees and externalpartners who will build and equip thehelicopters that will serve the nation’spresident. “We looked for the right people who were the right fit, withouthaving any preset determinations. Eachemployee brings their unique perspec-tives to our business and helps to createmore innovative solutions for our customer,” said Ramsey.

Customer focus is alwaysRamsey’s key priority. “The more inclu-sive we are, the more we can benefitfrom our intellectual capital and deliverthe best product to the customer.”

Productive and innovative work climateNew hires joining Michoud Operationsin New Orleans, La., may soon be

exposed to a new “think tank” concept.The innovative think tank would helppromote inclusiveness by allowing new employees to solve existing chal-lenges within the business. Assessmentresults showed that employees feel ahigher level of satisfaction and loyaltywhen formalized processes exist to foster inclusion.

“We found that new hires oftenhave some down time when they first join the company,” said ZuyapaJackson, a human resources represen-tative who is developing the new concept. “The think tank concept wouldallow these employees to contribute afresh perspective to the challenges thatwe are facing.”

Jackson hopes the think tank concept, which is set to begin in 2006,would engage new employees and lever-age diversity to help with general prob-lem solving. “It’s about creating anenvironment that welcomes and respectsnew employees and leverages our differ-ences as a competitive strength.”

DiversityMaturity ModelContinued from p. 1

Learn more about how the DMM works at http://diversity-community.global.lmco.com/

divcomm/DMMMain.asp on the LockheedMartin Intranet.

The Lockheed Martin Corporation Foundation announced inApril this year’s Lockheed Martin Merit Scholarship recipi-ents. The scholarship program awards $3,000 per year for upto four years of undergraduate study to National MeritFinalists who are the children of Lockheed Martin employees.Selections are made for Lockheed Martin by the NationalMerit Scholarship Corporation.

Lockheed Martin’s scholarship recipients were chosenfrom a pool of students whose scores on their junior yearPreliminary SAT/National Merit Scholarship Qualifying Test (PSAT/NMSQT) qualified them as National MeritSemifinalists and who subsequently identified themselves on the National Merit Scholarship Application as children of Lockheed Martin employees.

Merit Scholarship winners are selected on the basis oftheir academic record throughout high school, significant activi-ties and contributions to the school and community, test scores,the school’s recommendation of the candidate, and the student’sessay about personal characteristics, activities, plans and goals.

The National Merit Scholarship Corporation admin-isters this highly competitive program and notes that theCorporation’s 49 winners, in earning the designation ofNational Merit Scholars, have placed themselves academi-cally within the top one-half of 1 percent of all U.S. highschool graduates.

The high school seniors from the class of 2005 whohave been awarded Lockheed Martin Merit Scholarships,which are funded by the Lockheed Martin Foundation andawarded through the National Merit Scholarship Corporation,are listed at right.

To be considered for the Lockheed Martin MeritScholarship, high school students must take the PSAT/NMSQTin the fall of their junior year. (A junior year entry applicationform is no longer required.) Students whose scores qualifythem as National Merit Semifinalists are notified through theirschools in the fall of their senior year and invited to completethe National Merit Scholarship Application, on which theyname Lockheed Martin as a parent’s employer.

Lockheed Martin Foundation AwardsAnnual Scholarships

MS2 PresidentReceives AwardFor MaritimeContributionsFred Moosally, president ofLockheed Martin MaritimeSystems & Sensors, standing at right, is presented the NavyLeague’s Fleet Admiral ChesterW. Nimitz Award by GeneralMichael Hagee, Commandantof the U.S. Marine Corps, dur-ing the recent Sea-Air-SpaceExposition in Washington, D.C.The Nimitz Award honors aleader of industry who hasmade a major contribution tothe nation’s maritime strength.

10

Additional information about the scholarship program can befound at http://www.lockheedmartin.com/scholarships.html.

11

2 0 0 5 S C H O L A R S H I P A W A R D SStudent Hometown Parent Parent’s Work Location

1 Anthony, Jason P. Maple Glen, PA Robert B. Anthony Space Systems, Valley Forge

2 Baize, Lauren A. Thousand Oaks, CA Deborah Baize Calabasas (Retired)

3 Ballard, Katelyn R. Albuquerque, NM Sanford Ballard Sandia National Laboratories

4 Beauvilliers, Lily M. Phoenixville, PA Paul E. Beauvilliers Integrated Systems & Solutions, King of Prussia

5 Bevill, Aaron M. Houston, TX Terrie J. Bevill Space Operations, Houston

6 Black, Jason L. Livermore, CA Kenneth L. Black Sandia National Laboratories, CA

7 Bogorad, Andrew, M. Bedminster, NJ Alexander Bogorad Commercial Space, Newtown

8 Bunker, Ross C. Albuquerque, NM Bruce Bunker Sandia National Laboratories

9 Carlson, Elise T. Chuluota, FL James C. Carlson Simulation, Training & Support, Orlando

10 Carter, Lauren P. Fort Worth, TX Gregory Carter Aeronautics, Fort Worth

11 Chang, Sharon F. Fort Worth, TX Francis Chang Aeronautics, Fort Worth (Retired)

12 Chen, Anthony A. Albuquerque, NM Martin M. Chen Sandia National Laboratories

13 Chen, Lily Palo Alto, CA Qiong J. Xia Space Systems, Sunnyvale

14 Ciarlo, Christie A. Orlando, FL Philip Ciarlo Maritime Systems & Sensors Material Acquisition Center, Moorestown

15 Clauss, Charles A. Albuquerque, NM John M. Clauss Sandia National Laboratories

16 Cooper, Sarah A. Cedar Crest, NM Philip J. Cooper Sandia National Laboratories

17 Cordwell, Robert T. Albuquerque, NM William R. Cordwell Sandia National Laboratories

18 Cox, Stephen E. Fort Worth, TX John E. Cox Aeronautics, Fort Worth

19 Crossno, Rachel E. Albuquerque, NM Patricia Joyce Crossno Sandia National Laboratories

20 Daily, Jonathan P. Shepherdstown, WV Diane Taylor Information Technology, Woodlawn, MD

21 Gallagher, Katherine M. Orlando, FL Charles F. Gallagher Integrated Systems (I&TS), Orlando

22 Harper-Slaboszewicz, Jon Albuquerque, NM Victor Harper-Slaboszewicz Sandia National Laboratories

23 Heywood, Christopher Potomac, MD David Heywood Corporate, Bethesda

24 Hoang, Van N. Keller, TX Dinh N. Hoang Aeronautics, Fort Worth

25 Hollandsworth, Brian J. Littleton, CO Paul C. Hollandsworth, Jr. Integrated Systems & Solutions, Waterton-Denver

26 Huang, Jingbo New Orleans, LA Xueqiao Huang Lockheed Martin Information Technology, New Orleans

27 Jameson, Carl D. Wilmington, DE Stephen M. Jameson Advanced Technology Labs, Cherry Hill, NJ

28 Jones, Emmalee M. Albuquerque, NM Tracy K. Jones Sandia National Laboratories

29 Lay, Chris B. Palo Alto, CA Jen-Nan Lay Space Systems, Sunnyvale

30 Lee, Alex J. Albuquerque, NM Moo Y. Lee Sandia National Laboratories

31 Mai, Chi L. Fort Worth, TX Viet L. Mai Aeronautics, Fort Worth

32 Mehling, Stephan A. Westampton, NJ John A. Mehling Maritime Systems & Sensors, Moorestown, NJ (Retired)

33 Miller, Andrew M. Marlton, NJ Michael J. Miller Maritime Systems & Sensors, Moorestown, NJ (Deceased)

34 Miller, Samuel E. Apple Valley, MN Richard M. Miller, Jr. Maritime Systems & Sensors, Eagan, MN

35 Mitchell, Dianne M. Geneva, NY Ellen Mitchell Maritime Systems & Sensors, Syracuse, NY

36 Mitchell, Dorothy A. Geneva, NY Ellen Mitchell Maritime Systems & Sensors, Syracuse, NY

37 Morton, Jennifer A. Owens Cross Roads, AL Maribel F. Morton Space Systems, Huntsville

38 Nelson, Jeremy S. Baldwinsville, NY John Nelson Maritime Systems & Sensors, Syracuse, NY

39 Nguyen, Christina T. Sunnyvale, CA Long H. Nguyen Space Systems, Sunnyvale

40 Payne, Joelle M. Melbourne, FL Dwight G. Payne Maritime Systems & Sensors, Melbourne, FL

41 Pham, Tanya T. San Diego, CA Dam T. Pham Space Systems, Sunnyvale

42 Rasheed, Saad W. Short Hills, NJ Javed Rasheed Integrated Systems & Solutions, Tinton Falls, NJ

43 Sheffield, Thomas Y. Fort Worth, TX Scott Sheffield Aeronautics, Fort Worth

44 Snow, Sara F. Albuquerque, NM Kelly Snow Sandia National Laboratories

45 Strunz, Eric C. Orlando, FL Harry C. Strunz Missiles and Fire Control, Orlando

46 Supancic, Sara J. Bristol, RI Carl M. Supancic Maritime Systems & Sensors, Newport, RI

47 Vaughn, James R. Albuquerque, NM Mark R. Vaughn Sandia National Laboratories

48 Wagner, Kristyn A. Fort Worth, TX Randell G. Wagner Aeronautics, Fort Worth

49 Yang, Katy Houston, TX Yao-Kuei Yang Space Operations, Houston

“The idea is to keep part of theresearch and development effortfocused on longer-term goals and com-pany strategy,” says Ron Clark, directorof Technology Planning and Analysis.“It’s like a basketball player goingdown the court. He’s dribbling the ballbut he’s also keeping his head up to seewhat’s happening ahead of him.”

To maintain leading-edge capa-bilities in missions that are well estab-lished and require focused development,Space Systems develops three-yearbudgets for its IRAD programs and performs annual reviews of theirprogress. The programs are reviewedfor their alignment with the businessarea’s strategic plan, any near-termacquisitions or tactical campaigns, thecompany’s competitive position, andthe core competencies it is striving tomaintain and strengthen. These periodicreviews provide opportunities to makechanges and insert new projects.

A significant portion of SpaceSystems’ IRAD funds are spent on pro-grams conducted at the organization’sAdvanced Technology Center, in PaloAlto, Calif. The ATC’s capabilities spana wide range of technologies that arevital for space programs, such as spacesensors and phenomenology, advancedelectro-optical technology, communica-tion technologies, and space sciences.

Space Systems’ R&D efforts haveyielded several significant successes inrecent years and are positioning thecompany for future business captures.

IRAD programs in target discrim-ination and seeker technologies, forexample, led to a win of the MiniatureKill Vehicle program that is vital to thenation’s ballistic missile defense initia-tive. Other IRAD investments wereinstrumental in Space Systems’ develop-ment of the IKONOS commercialremote sensing satellite, the U.S. Navy’sMobile User Objective System (MUOS)next-generation narrowband tactical

satellite communications system, and awide range of civil space programs,including the Mars ReconnaissanceOrbiter, Mars Telecom Orbiter, andmany other NASA missions.

Currently, the business area isperforming leading-edge IRAD workin the area of advanced reconfigurableprocessors that allow satellite ownersto add functionality after the hardwarehas been built, a technology that isespecially attractive in the commercialline of business. Another R&D initia-tive, in the area of “transformationalcommunications,” or T-SAT, is aug-menting the best commercial telecom-

munications technology with uniqueLockheed Martin developments to laythe foundation for a wireless space-based network that rivals the flexibilityof terrestrial commercial systems.

Plus, the Space Systems R&Dgroup is developing active phasedarrays that can provide users with sig-nificantly more flexibility in managingsatellite signals, which is a critical

technology for the company’s futurecompetitiveness.

“At the same time we’re doingIRAD programs,” Clark adds, “we’realso maintaining a balance with exter-nal CRAD funding. The customer’swillingness to spend money on tech-nology is always a good indicator ofthe types of capabilities seen as beingvaluable to their missions.”

Coordinating research and devel-opment programs across an organizationas large and diverse as Lockheed Martinis not an easy task, says Jack Hammondin the corporate office, but doing the job

well benefits the Corporation, its cus-tomers and its shareholders.

The Corporation’s R&Dapproach includes long-term as well asnear-term investments and draws onresources from outside as well asinside the company. The approachstrengthens Lockheed Martin’s abilityto anticipate customers’ needs, in addi-tion to responding to them, and itenables the Corporation to increase theeffectiveness of its R&D spending.

“We’re the eyes and ears of ourcustomers in the realm of evolvingtechnology,” Hammond says. “We’reconstantly aware of the work that’sbeing done across the nation andaround the world at universities, in thenational laboratories, at small busi-nesses and among large commercialtechnology developers. It’s one of the

primary ways we add value for ourcustomers and ensure that LockheedMartin will continue to be the technol-ogy leader in our industry.”

Lockheed Martin Corporation, Volume 11, Number 5Published for employees by Lockheed Martin Corporate Communications. The award-winning Lockheed Martin Today is printed on recycled paper using soy-based inks and is recyclable. For permis-sion to reprint or excerpt material, contact mona.coan@lmco.com.

To obtain copies, e-mail today@lmdistribute.com.

Corporate CommunicationsDennis Boxx, senior vice president, Corporate Communications

Editorial BoardMona Coan, Lockheed Martin Today editor and senior manager, Corporate CommunicationsGinny Vasan, vice president, Executive and Internal Communications�Dave Waller, director, Human Resources Communications

Design/Art DirectionConcept Foundry

Contributors Julie Camardo, Jan Gottfredsen, Jeremy Greaves, David Phillips, Craig Quigley, Melissa Walton,Brian Sears

Special ReportersMarylee Sauder, Rick Sauder

Photography/ArtMelanie Coles, Randy Montoya, Mike Nipper, Eric Schulzinger

Lockheed Martin Today may contain forward-looking statements (as defined by federal securities laws) related to financial perform-ance. These statements are not guarantees of the Corporation's future performance as actual results may vary depending on a multitude of factors. Investors should review the Corporation's filings with the Securities and Exchange Commission (SEC), whichdescribe some of these factors, available on the Web at www.lockheedmartin.com or the SEC's site at www.sec.gov.

The Corporation expressly disclaims a duty to provide updates to forward-looking statements, and the estimates and assumptionsassociated with them, after the date of this Lockheed Martin Today to reflect the occurrence of subsequent events, changed circumstances or changes in the Corporation's expectations.

In addition, some or all of the following factors could affect the Corporation's forward-looking statements: the ability to obtain or the tim-ing of obtaining future government awards; the availability of government funding and customer requirements both domestically andinternationally; changes in government or customer priorities due to program reviews or revisions to strategic objectives; difficulties indeveloping and producing operationally advanced technology systems; the competitive environment; economic, business and politicalconditions domestically and internationally; program performance; the timing and customer acceptance of product deliveries; perform-ance issues with key suppliers and subcontractors; and the Corporation's ability to achieve or realize savings for its customers or itselfthrough its cost-cutting program and other financial management programs. These are only some of the numerous factors that mayaffect the forward-looking statements contained in Lockheed Martin Today.

12

Lockheed Martin Sponsors Special Stamp Exhibit At Smithsonian

Lockheed Martin is a primary sponsor for the Stamps Take Flight exhibition on display at the Smithsonian NationalPostal Museum in Washington, D.C., now through mid-March 2006. The exhibition showcases technology and maildelivery, and features materials from the Postmaster General’s Collection of the United States Postal Service.Artifacts are used to tell the story of several special stamps in the collection, each representing a major stamp print-ing method. A second part of the exhibition includes other rare and unusual holdings – including the mail pouch thatthe Apollo 15 astronauts took to the Moon. In the photo, from left, U.S. Postmaster General John Potter, SmithsonianInstitution Government Relations Director Nell Payne, Lockheed Martin Distribution Technologies President JudyMarks, and U.S. Postal Service Board of Governors Chairman James Miller officially open the exhibit at a ribbon-cutting ceremony in April.

To view the Lockheed Martin portfolio of research and development projects, go to the

Technology Investment Plan site athttp://tip.global.lmco.com. Because ofthe proprietary nature of the information,access is controlled by the businessareas. To gain access, follow theprompts after attempting to log into the system with your NT User ID andpassword. Contacts for general R&Dquestions are: Corporate, JackHammond, 301-897-6571; Aero, NeilKacena, 661-572-7238; ElectronicSystems, Jim Marsh, 856-792-9820;Integrated Systems & Solutions, LarryAlexander, 610-354-6208; and SpaceSystems, Ron Clark, 408-743-2269.

R&DContinued from p. 4

Another R&D initiative, in the area of

“transformational communications,” or T-SAT, is

augmenting the best commercial telecommunications

technology with unique Lockheed Martin

developments to lay the foundation for a wireless

space-based network that rivals the flexibility of

terrestrial commercial systems.