PALMDALE, Calif., Feb. 29 /PRNewswire/ -- Lockheed Martin (NYSE: LMT) and Karem Aircraft Incorporated have signed a teaming agreement to jointly develop Karem Aircraft's Optimum Speed Tilt-Rotor (OSTR) design. The OSTR concept is one of three approaches selected by the Department of Defense (DoD) Joint Heavy Lift program office to receive a Concept Design and Analysis extension contract.

Abe Karem, president of Karem Aircraft, said, "Teaming allows us to provide our DoD customer with a highly innovative Joint Heavy Lift solution that leverages Karem's innovative OSTR aircraft design and Lockheed Martin's expertise in system integration, advanced composite design and tactical transport aircraft."

Lockheed Martin's effort will be led by Lockheed Martin Aeronautics' Advanced Development Programs organization (The Skunk Works(R)).

With offices in Lake Forest, Calif., and Fort Worth, Tex., Karem Aircraft is a developer of advanced tilt-rotor transport aircraft. Led by Abe Karem, this aircraft rapid development team continues the tradition of innovation of his previous teams, which developed the Amber and Gnat 750 (of which the General Atomics Predator is a derivative), unmanned aerial vehicle (UAV) systems, as well as the Hummingbird A160 Optimum-Speed Rotor UAV, now a Boeing product.

Headquartered in Bethesda, Md., Lockheed Martin 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 2007 sales of $41.9 billion.

                               Link for photo:

www.lockheedmartin.com/news/press_releases/2008/0229ae_horizontallift.html

Photo Caption: Karem Aircraft's Optimum Speed Tilt-Rotor (OSTR) design

SOURCE  Lockheed Martin Aeronautics Company
    -0-                             02/29/2008
    /CONTACT:  Melissa Dalton of Lockheed Martin, +1-661-572-1130,
melissa.dalton@lmco.com; or Amy Osajima of Karem Aircraft Incorporated,
+1-949-859-4444, JHL@karemaircraft.com/
    /Company News On-Call:  http://www.prnewswire.com/comp/117281.html/
    /Web site:  http://www.lockheedmartin.com /
    (LMT)

CO:  Lockheed Martin Aeronautics Company; Lockheed Martin; Karem Aircraft
     Incorporated
ST:  California
IN:  ARO
SU:  JVN

CR-JR
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4042 02/29/2008 15:01 EST http://www.prnewswire.com