LOCKHEED MARTIN CREATES NEW TELECOMMUNICATIONS SERVICES BUSINESS
BETHESDA, MD, August 11th, 1998 -- Lockheed Martin (NYSE:LMT) today announced the formation of a new, wholly owned subsidiary to concentrate and extend the CorporationÂ¿s role in the rapidly expanding global telecommunications services business. Lockheed Martin Global Telecommunications will combine several existing joint ventures and other elements of the Corporation under a focused management team intent upon dramatically growing the CorporationÂ¿s share of the global network services market, which is projected to more than double from some $50 billion this year to $120 billion in the year 2002.
Initially, the new subsidiary will be comprised of Lockheed Martin Intersputnik, Astrolink, Lockheed Martin Telecommunications, the commercial communications systems capability of Lockheed Martin Management & Data Systems, the commercial communications elements of Lockheed Martin Western Development Laboratories, and the CorporationÂ¿s stake in a satellite communications joint venture with General Electric. Concurrently, Global Telecommunications will pursue opportunities for growing market share in the communications and network services businesses through strategic initiatives and investments. Satellite sales, launch services, and on-orbit deliveries will continue to be managed by Lockheed Martin Space & Strategic Missiles Sector.
"Global Telecommunications will be positioned to quickly become a major competitor in the worldwide space-based and terrestrial communications markets," said Vance Coffman, chairman and chief executive officer of Lockheed Martin. "WeÂ¿ve assembled a top-notch management team capable of delivering on the exponential growth we expect from this new subsidiary," said Coffman. "This group brings exceptional management, technological, financial, systems integration and customer-relations acumen to Global Telecommunications."
The new subsidiary will be led by John V. Sponyoe, currently president of Lockheed Martin Electronics SectorÂ¿s Platform Integration Group, who will be chief executive officer of Global Telecommunications. HeÂ¿ll be joined in the executive office by Brian D. Dailey, currently vice president of strategic development for the Corporation, who will serve as chief operating officer, and John E. Montague, presently vice president of financial strategies for Lockheed Martin, who will be chief financial officer. The subsidiary will report directly to the CorporationÂ¿s executive office.
Sponyoe brings a long heritage of new business development, information systems management and complex system integration. Dailey was instrumental in forming and implementing a number of Lockheed MartinÂ¿s space initiatives including International Launch Services, Space Imaging, Inc. and Lockheed Martin Intersputnik. Montague has led the CorporationÂ¿s strategic merger, acquisition, and divestiture activities.
The management team of the new subsidiary will include Claude Burgio, President of Lockheed Martin Telecommunications as well as Celso Azevedo, President of Astrolink, James G. "Buzz" Beitchman, President of Lockheed Martin Intersputnik, and Stan Sloane, Vice President of Lockheed Martin Management & Data Systems.
"Every assessment weÂ¿ve seen points to rapid and substantial growth in communications services, driven by the explosive demand for capabilities such as digital communication, broadband/internet, and virtual private networks. Bringing together expertise from across the Corporation will rapidly enable Global Telecommunications to capably and nimbly deliver superior solutions to commercial and government customers requiring these commercial services around the world, and will provide growth in value to Lockheed Martin shareholders," Coffman said.