Press Release

TAMPA, Fla.--(BUSINESS WIRE)--Jan. 27, 2003--

Top Defense Contractor to Pursue Armor Applications for

Liquidmetal(R) Alloys

Liquidmetal Technologies (NASDAQ:LQMT) and Lockheed Martin Missiles and Fire Control (NYSE:LMT) announced today they have agreed to test potential applications for Liquidmetal(R) alloys in current and future armored weapon systems manufactured by Lockheed Martin, the world's largest defense contractor.

The initial one-year program will focus on development of armor tiles formed from ceramics and Liquidmetal alloys to enhance the performance of current composite armor systems as well as potentially reduce the vulnerability of armored weapons in battlefield conditions. Lockheed Martin will be responsible for system designs, sensor testing and ballistic testing, with Liquidmetal Technologies supplying all required test components. The two companies will jointly pursue business opportunities for products developed under the current agreement or any subsequent contracts. Lockheed Martin is interested in the potential of Liquidmetal alloys to reduce weight and improve strength in a variety of products.

John Kang, Liquidmetal Technologies' President and Chief Executive Officer, said, "We are very pleased to establish this product development relationship with Lockheed Martin Missiles and Fire Control. It significantly broadens the scope of our ongoing defense product initiatives and underscores our strategic focus on aligning our alloy technology with recognized leaders in each of our target product areas. We are confident that the superior properties of Liquidmetal alloys will enable Lockheed Martin to solve many critical engineering challenges."

Testing of Liquidmetal alloys for military applications is also underway through ongoing programs with the U.S. Department of Defense, under the auspices of the Defense Advanced Research Projects Agency (DARPA), and under a contract with the U.S. Army. These programs are focused primarily on development of higher-performance Kinetic Energy Penetrator (KEP) rods for use in armor-piercing ammunition systems.

About Lockheed Martin

Lockheed Martin Missiles and Fire Control (www.lockheedmartin.com) develops, manufactures and integrates world-class air defense, fire support, strike weapon, naval munitions, combat vision, anti-armor and advanced product solutions and systems for U.S. and international armed forces. Headquartered in Bethesda, Md., Lockheed Martin is a global enterprise principally engaged in the research, design, development, manufacture and integration of advanced technology systems products and services.

About Liquidmetal Technologies

Liquidmetal Technologies (www.liquidmetal.com) is the leading developer, manufacturer, and marketer of products made from amorphous alloys. Amorphous alloys are unique materials that are characterized by a random atomic structure, in contrast to the crystalline atomic structure possessed by ordinary metals and alloys. Bulk Liquidmetal(R) alloys are two to three times stronger than commonly used titanium alloys, harder than tool steel, and relatively non-corrosive and wear resistant. Bulk Liquidmetal alloys can also be molded into precision net-shaped parts similar to plastics, resulting in intricate and sophisticated engineered designs. Liquidmetal Technologies is the first company to produce amorphous alloys in commercially viable bulk form, enabling significant improvements in products across a wide array of industries. The combination of a super alloy's performance coupled with unique processing advantages positions Liquidmetal alloys for what the company believes will be The Third Revolution(TM) in material science.

This press release may contain "forward-looking statements" that involve risks and uncertainties, including statements regarding our plans, future events, objectives, expectations, forecasts, or assumptions. Any statement in this press release that is not a statement of historical fact is a forward-looking statement, and in some cases, words such as "believe," "estimate," "project," "expect," "intend," "may," "anticipate," "plans," "seeks," and similar expressions identify forward-looking statements. These statements involve risks and uncertainties that could cause actual outcomes and results to differ materially from the anticipated outcomes or result, and undue reliance should not be placed on these statements. These risks and uncertainties may include: our limited operating history in developing and manufacturing products from bulk amorphous alloys; the adoption of our alloys by customers; the commercial success of our customer's products; our ability to identify, develop, and commercialize new applications for our alloys; competition with suppliers of incumbent materials; the development of new materials that render our alloys obsolete; the ability to manage our anticipated growth; our limited direct experience in manufacturing bulk alloy products; scaling-up our manufacturing facilities; protecting our intellectual property; problems associated with manufacturing and selling our alloys outside of the United States; and other risks and uncertainties discussed in filings made with the Securities and Exchange Commission (including risks described in subsequent reports on Form 10-Q, Form 10-K, Form 8-K, and other filings). Liquidmetal Technologies disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

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