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NEWLY FORMED VOUGHT CORPORATION SIGNS CONTRACT TO ACQUIRE LTV'S AIRCRAFT AND MISSILES DIVISIONS

 NEWLY FORMED VOUGHT CORPORATION SIGNS CONTRACT TO
 ACQUIRE LTV'S AIRCRAFT AND MISSILES DIVISIONS
 BETHESDA, Md., Feb. 26 /PRNewswire/ -- Martin Marietta (NYSE: ML) and Lockheed (NYSE: LK) said today that a new jointly owned company, the Vought Corporation, has signed a definitive agreement to acquire substantially all of LTV's (NYSE: LTV) aircraft and missiles businesses for $355 million.
 The purchase price includes $319 million in cash and $36 million in preferred stock. The acquisition, subject to approval by the U.S. Bankruptcy Court, certain conditions in the contract and government review and approval, is expected to be completed within 60 to 90 days.
 LTV's aircraft and missiles divisions reported 1991 operating income of $131 million, $1.7 billion in sales and a backlog of $3.8 billion at year's end. Vought Corporation earnings will be shared equally by Martin Marietta and Lockheed.
 Norman R. Augustine, chairman and chief executive officer of Martin Marietta, and Daniel M. Tellep, Lockheed's chairman and chief executive officer, said, "The acquisition would strengthen American ownership of a respected U.S. aerospace company," enabling the businesses and its employees to "prosper in the increasingly difficult challenge of a consolidating U.S. defense market."
 "This acquisition is structured to provide long-term opportunities for LTV employees who will join Vought Corporation. It also will benefit the communities where their facilities are located and the important customers they serve, including those responsible for national security," Augustine and Tellep said.
 The Vought Corporation will operate as a stand-alone "Fortune 250" company with its own board of directors and management team. The independent board will be comprised of senior industry leaders, three of whom will be elected by Martin Marietta and three by Lockheed. Richard J. Boyle, president and chief executive officer of LTV's Aerospace and Defense Company, will be chief executive officer of Vought and its board chairman.
 The Vought Corporation will retain exclusive rights to its patents and technologies and will be able to compete against Martin Marietta and/or Lockheed for new business.
 LTV's aircraft division is a major subcontractor for military and civilian aircraft structures, components and for advanced development programs. It also manages programs to modernize and support military aircraft. Among major contracts are those for the C-17 transport and Boeing 747, 757 and 767 aircraft.
 The missiles division of LTV produces systems that meet U.S. military requirements for highly mobile forces that can be rapidly deployed. Both the Multiple Launch Rocket System and Army Tactical Missile System were successfully used in the Persian Gulf. Under development are missiles to defend against tanks and one for ground- based defense against other missiles.
 Lockheed and Martin Marietta are world leaders in defense and space systems technology, systems integration, tactical and electronic systems, military aircraft and aircraft systems.
 -0- 2/26/92
 /CONTACT: Phillip S. Giaramita of Martin Marietta, 301-897-6121, or Scott Hallman of Lockheed, 818-876-2477/
 (LTV ML LK) CO: Martin Marietta; Lockheed Corp.; LTV Corp. ST: Maryland, California, Texas IN: ARO SU: CON


CK -- NY036 -- 2740 02/26/92 10:58 EST
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Publication:PR Newswire
Date:Feb 26, 1992
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