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Exhibit 99
GLOBALSTAR'S FAILURE TO REPAY LOAN TRIGGERS LOCKHEED MARTIN GUARANTEE UNDER BANK
CREDIT AGREEMENT
BETHESDA, Maryland, June 30, 2000 - Lockheed Martin Corporation (NYSE: LMT)
disclosed that The Chase Manhattan Bank notified the Corporation on Friday, June
30, 2000 that Globalstar Telecommunications (Nasdaq:GSTRF) failed to repay
borrowings of $250 million under a revolving credit agreement on which Lockheed
Martin is a partial guarantor. It is Lockheed Martin's understanding that
Globalstar drew under this facility earlier this month.
In fulfillment of its contractual obligations under the guarantee, the
Corporation has paid $207 million, including applicable interest and fees to the
bank. Lockheed Martin is entitled to repayment by Globalstar of the amounts paid
under the guarantee and has not yet reached agreement with respect to the form
and timing of repayment.
Loral Space & Communications (NYSE:LOR) has paid $57 million to Lockheed Martin.
That payment is based on a separate indemnification agreement made by Loral to
Lockheed Martin.
The Corporation is not changing its previous estimate of generating at least
$500 million in free cash for the year 2000. The Corporation also affirms its
previous year 2000 earnings estimate, excluding nonrecurring and unusual items,
of $1.05 per share. The Corporation is evaluating the need for any pretax,
nonrecurring charge against earnings in the 2nd quarter 2000.
NOTE: Statements in this press release, including the statements
relating to projected future financial performance, are considered
forward-looking statements under the federal securities laws,
including the Private Securities Litigation Reform Act of 1995.
Sometimes these statements will contain words such as "believes,"
"expects," "intends," "plans," "estimates," "outlook," "forecast," and
other similar words. These statements are not guarantees of our future
performance and are subject to risks, uncertainties and other
important factors that could cause our actual performance or
achievements to be materially different from those we may project. As
for the forward-looking statements that relate to future financial
results and other projections, actual results will be different due to
the inherent nature of projections and may be better or worse than
projected. Given these uncertainties, you should not place any
reliance on these forward-looking statements. These forward-looking
statements also represent our estimates and assumptions only as of the
date that they were made. We expressly disclaim a duty to provide
updates to these forward-looking statements, and the estimates and
assumptions associated with them, after the date of this press release
to reflect events or circumstances or changes in expectations or the
occurrence of anticipated events.
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In addition to the factors set forth in our filings with the
Securities and Exchange Commission (www.sec.gov), the following factors
could affect the forward-looking statements: competition and customer
demand in the telecommunications industry, the ability to achieve or
quantify savings for our customers or ourselves as a result of our
reorganization efforts or in our global cost-cutting program; our ability
to grow earnings and generate cash flow in accordance with our beliefs;
difficulties during space launches; the ability to obtain or the timing of
obtaining future government awards; the availability of government funding
and customer requirements; economic conditions, competitive environment,
international business and political conditions, timing of awards and
contracts; timing and customer acceptance of product delivery and launches;
the outcome of contingencies, including completion of any acquisitions and
divestitures, litigation and environmental remediation, program
performance, and our ability to consummate the Comsat transaction. These
are only some of the numerous factors which may affect the forward-looking
statements in this press release.
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NEWS MEDIA CONTACT: James Fetig, 301/897-6352
INVESTOR RELATIONS CONTACT: James Ryan, 301/897-6584 or
Randa Middleton, 301/897-6455
Web site: www.lmco.com
