1995 Annual Report - Lockheed Martin

programs. Our strategy is to implement the best management practices across all LockheedMartin-managed facilities to reduce operating costs and improve their efficiency. We are examiningways to improve such functions as procurement, finance, training and construction, andwill submit recommendations to the Secretary of Energy this year. We also are confident that thisapproach will yield significant new business opportunities in the public and private sectors.Last year, Lockheed Martin Utility Services was awarded a three-year extension, throughSeptember 30, 1998, with an option for an additional two years under its existing contract, tomaintain the Portsmouth and Paducah uranium enrichment facilities for the U.S. EnrichmentCorporation. Under the extension, Lockheed Martin and the U.S. Enrichment Corporation willmanage an operating budget in excess of $1 billion.Lockheed Martin and Molten Metal Technology, Inc. have entered into agreementsintended to strengthen their environmental services business. Under these agreements, which aresubject to certain conditions, including regulatory approvals, Lockheed Martin EnvironmentalSystems & Technologies will sell its Retech environmental division to M4 Environmental L.P.,a limited partnership jointly-owned by Lockheed Martin and Molten Metal Technology. Retechdesigns and manufactures plasma furnaces for the metallurgical and remediation markets.M4 Environmental was created in 1994 to supply Molten Metal Technology's waste recyclingtechnology to Department of Defense and Department of Energy customers.This year, the Energy & Environment Sector is expected toimplement the "system of laboratories" concept among the threenational laboratories operated by Lockheed Martin.30