Lockheed Martin-Microsoft Agreement to Bring Better Training to Warfighters

ORLANDO, Fla, 11/30/2009 --

Lockheed Martin (NYSE: LMT) and Microsoft Corp. entered into an intellectual property licensing agreement that allows Lockheed Martin to further develop the Microsoft® ESP™ PC-based visual simulation software platform to better train warfighters for battle.

The agreement provides Lockheed Martin with access to the ESP technology portfolio, enabling the company to build cost-effective simulation solutions for customized training for its worldwide customers. Lockheed Martin's software development teams will extend the current capabilities of ESP to enable a whole new suite of innovative ESP-based solutions that will evolve beyond flight training to include ground and civil agency applications.

"The training needs of our military and civil government customers continue to expand," said Chester Kennedy, vice president of Engineering at Lockheed Martin's Simulation, Training & Support business unit. "Seeking out and developing new innovative solutions such as this one based on the proven Microsoft ESP technology allows Lockheed Martin to provide our customers with new and tailored training systems more quickly and cost efficiently."

"Solutions built on Microsoft ESP can engage users in immersive experiences with very realistic environments—making them ideal tools for training, evaluating, and preparing personnel for optimal performance in the real world," said Chris Cortez, general manager of Strategic Programs at Microsoft, and a retired Marine Corps major general. "ESP models the entire world and will allow Lockheed Martin's developers to easily add their own content, objects, scenery, simulation functionality, and scenarios to create custom training solutions."

The Microsoft ESP IP licensing agreement builds on the existing Microsoft/Lockheed Martin Strategic Alliance to bring meaningful information technology services and products to market and continue to fuel innovation. It is also an example of Microsoft's broader efforts to collaborate with industry through IP licensing.

Microsoft ESP is a visual simulation software development platform that brings immersive games-based technology to training and decision support for commercial, government and education organizations.

Visitors to the Interservice/Industry Training, Simulation & Education Conference (I/ITSEC) in Orlando this week can see Lockheed Martin's first ESP-based solution on display in booth 2049. The Pilatus PC-12 desktop trainer showcases the affordable, powerful training and mission rehearsal capabilities ESP will bring to Lockheed Martin's customers.

About Lockheed Martin

Headquartered in Bethesda, Md., Lockheed Martin is a global security company that employs about 140,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The corporation reported 2008 sales of $42.7 billion.

About Microsoft

Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Media Contacts:

For more information, press only:

Warren Wright, Lockheed Martin (407) 306-4447, e-mail: warren.wright@lmco.com

Rapid Response Team, Waggener Edstrom Worldwide for Microsoft, (503) 443-7070, rrt@waggeneredstrom.com

For additional information, visit our websites:

www.lockheedmartin.com

www.microsoft.com