1
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549



                                    FORM 8-K

                                 CURRENT REPORT


                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934



Date of Report (Date of earliest event reported):    October 21, 1996





                         MARTIN MARIETTA MATERIALS, INC.
               (Exact name of registrant as specified in charter)


North Carolina                                                   56-1848578
(State or other              (Commission File                  (IRS Employer
jurisdiction of                   Number)                    Identification No.)
incorporation)



2710 Wycliff Road, Raleigh, North Carolina                27607-3033
(Address of principal executive offices)                  (Zip Code)



Registrant's telephone number, including area code:
(919) 781-4550





                                [Not Applicable]
         (Former name or former address, if changed from last report)



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Item 5.  Other Events

Adoption of Stockholder Rights Plan

         On  October  15,  1996,  the  Board of  Directors  of  Martin
Marietta Materials,  Inc. (the "Company")  declared a dividend  distribution of
one Right for each  outstanding  share of the Company's  common stock,  par
value $.01 per share (the "Common  Stock"),  payable to  stockholders of record
at the close of business on October 21, 1996 (the "Record  Date") and with
respect to the Common Stock issued  thereafter  until the  Distribution  Date
(defined  below) and, in certain  circumstances,  with  respect  to the  Common
Stock  issued  after the Distribution Date. Each Right, when it becomes
exercisable,  generally entitles the registered  holder to purchase from the
Company a unit consisting  initially of one  one-thousandth  of a share (a
"Unit") of Junior  Participating  Class A Preferred  Stock,  par value  $.01
per share  (the  "Preferred  Stock"),  of the Company,  at a  Purchase  Price
of $100 per Unit,  subject  to  adjustment  (the "Purchase  Price").  The
description and terms of the Rights are set forth in a Rights Agreement (the
"Rights Agreement"), dated as of October 21, 1996, between the Company and
First Union National Bank of North Carolina, as Rights Agent.

         Initially, the Rights will be attached to all certificates
representing shares of Common Stock then outstanding, and no separate
certificates evidencing the Rights ("Rights Certificates") will be distributed.
The Rights will separate from the Common Stock and a Distribution Date will
occur upon the earlier of (i) ten (10) days (or such later  date as the Board
of  Directors  shall  determine) following  public  disclosure that a Person or
group of affiliated or associated Persons has become an "Acquiring  Person" (as
defined  below),  or (ii) ten (10) business  days (or such later date as the
Board of  Directors  shall  determine) following the commencement of a tender
offer or exchange offer that would result in a Person or group becoming an
"Acquiring Person".  Except as set forth below, an "Acquiring  Person" is a
Person or group of affiliated or associated  Persons who has acquired
beneficial  ownership of 15% or more of the outstanding shares of Common Stock.
The term "Acquiring Person" excludes (i) the Company,  (ii) any subsidiary of
the Company, (iii) any employee benefit plan of the Company or any subsidiary
of the Company, and (iv) any Person or entity organized, appointed or
established by the Company for or pursuant to the terms of any such plan.

         Until the occurrence of the  Distribution  Date, (i) the Rights will
be evidenced by the Common Stock certificates and will be transferred with and
only with such Common Stock  certificates,  (ii) new Common Stock certificates
issued after the Record Date will contain a notation incorporating the Rights
Agreement by  reference,  and (iii) the  surrender  for transfer of any
certificates  for Common Stock outstanding will also

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         constitute the transfer of the Rights  associated with the Common
Stock represented by such certificate.  Pursuant to the Rights Agreement,  the
Company reserves the right to require prior to the occurrence of a Triggering
Event (as defined  below)  that,  upon any  exercise  of  Rights,  a number  of
Rights be exercised so that only whole shares of Preferred Stock will be
issued.

         As soon as practicable  after the occurrence of the Distribution
Date, Rights  Certificates  will be mailed to holders of record of the Common
Stock as of the close of business on the Distribution Date and, thereafter,
the separate Rights  Certificates  alone  will  represent  the  Rights.
Except  in  certain circumstances  specified in the Rights  Agreement or as
otherwise  determined by the  Board of  Directors,  only  shares  of  Common
Stock  issued  prior to the Distribution Date will be issued with Rights.

         The Rights are not exercisable until the occurrence of the
Distribution Date and until the Rights no longer are  redeemable.  The Rights
will expire at the close of business on October 21, 2006,  unless extended or
earlier  redeemed by the Company as described below.

         In the event that,  at any time  following  the  Distribution  Date,
a Person becomes an Acquiring Person,  each holder of a Right will thereafter
have the right to receive,  upon exercise of the Right,  Common Stock (or, in
certain circumstances, cash, property or other securities of the Company)
having a value equal to two times the exercise price of the Right.
Notwithstanding  any of the foregoing,  following the  occurrence of the event
set forth in this  paragraph, all Rights that are, or (under  certain
circumstances  specified  in the Rights Agreement)  were,  beneficially  owned
by any Acquiring  Person will be null and void and  nontransferable  and any
holder  of any  such  right  (including  any purported  transferee  or
subsequent  holder)  will be  unable to  exercise  or transfer any such right.
For example,  at an exercise  price of $100 per Right, each Right not owned by
an  Acquiring  Person (or by  certain  related  parties) following a
Triggering  Event (as defined  below)  would  entitle its holder to purchase
$200 worth of Common Stock (or other consideration, as noted above) for $100.
Assuming that the Common Stock had a per share value of $25 at such time, the
holder of each valid Right would be entitled to purchase 8 (eight) shares of
Common Stock for $100.

         In the event that,  at any time  following  the date on which there
has been public disclosure that, or of facts indicating that, a Person has
become an Acquiring Person (the "Stock Acquisition  Date"), (i) the Company is
acquired in a merger or other business  combination  transaction in which the
Company is not the  surviving  corporation,  or (ii)  50% or more of the
Company's  assets  or earning power is sold, mortgaged or transferred,  each
holder of a Right (except Rights which previously have been voided as set forth
above) shall thereafter

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         have the right to receive, upon exercise, common stock of the
acquiring company having a value equal to two times the exercise  price of the
Right.  The events set forth in this  paragraph and in the preceding  paragraph
are referred to as the "Triggering Events."

         The purchase price payable,  and the number of Units of Preferred
Stock or other  securities  or  property  issuable,  upon  exercise  of the
Rights are subject to adjustment from time to time to prevent  dilution (i) in
the event of a stock dividend on, or a subdivision,  combination or
reclassification  of, the Preferred  Stock,  (ii) if holders of the  Preferred
Stock are granted  certain rights or warrants to subscribe for Preferred Stock
or convertible securities at less than the current  market price of the
Preferred  Stock,  or (iii) upon the distribution  to holders of the Preferred
Stock of evidences of indebtedness or assets (excluding regular quarterly cash
dividends) or of subscription rights or warrants (other than those referred to
above).

         With certain  exceptions,  no adjustment in the purchase  price will
be required  until  cumulative  adjustments  amount to at least 1% of the
purchase price. No fractional Units will be issued and, in lieu thereof, an
adjustment in cash will be made based on the market price of the  Preferred
Stock on the last trading date prior to the date of exercise.

         Because of the nature of the Preferred  Stock's  dividend,
liquidation and voting rights,  the value of the one  one-thousandth  interest
in a share of Preferred Stock  purchasable upon exercise of each Right should
approximate the value of one share of Common Stock.  Shares of Preferred Stock
purchasable upon exercise of the Rights will not be  redeemable.  Each share of
Preferred  Stock will be  entitled  to a quarterly  dividend  payment of 1000
times the  dividend declared per share of Common Stock. In the event of
liquidation,  each share of Preferred  Stock will be entitled to a $10.00
preference,  and  thereafter  the holders  of the  shares of  Preferred  Stock
will be  entitled  to an  aggregate payment of 1000 times the aggregate payment
made per share of Common Stock. Each share of Preferred  Stock will have 1000
votes,  voting together with the shares of  Common  Stock.  These  rights  are
protected  by  customary   anti-dilution provisions.

         At any time until ten days  following  a Stock  Acquisition  Date,
the Company  may  redeem  the  Rights in  whole,  but not in part,  at a price
(the "Redemption  Price") of $.01 per Right.  The Redemption  Price may be
payable in cash,  Common Stock or other  consideration  deemed  appropriate by
the Board of Directors. Following a Stock Acquisition Date, the redemption of
any Rights must be  approved  by a majority  of the  Continuing  Directors,
and the  Continuing Directors must constitute a majority of the directors then
in office.  Moreover, during the 120-day  period  immediately  following a
change in a majority of the Board of

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         Directors  as a result of a proxy or consent  solicitation,  the
Rights may only be redeemed if approved by a majority of the  Directors  then
in office who were in office at the commencement of such proxy or consent
solicitation.  A "Continuing  Director"  is (i) any Person who on the Record
Date was a member of the Board of Directors,  while such Person is a member of
the Board,  who is not an Acquiring  Person,  or an Affiliate or Associate of
an Acquiring Person, or a representative  or nominee of an  Acquiring  Person
or of any such  Affiliate or Associate,  or (ii) any Person who  subsequently
becomes a member of the Board, while such Person is a member of the Board, who
is not an Acquiring  Person,  or an Affiliate or Associate of an Acquiring
Person, or a representative or nominee of an Acquiring  Person or of any such
Affiliate or Associate,  if such Person's nomination for election or election
to the Board is recommended or approved by a majority of the Continuing
Directors.  The redemption of the Rights may be made effective  at such  time
and on such  terms  and  conditions  as the  Board  of Directors in its sole
discretion may establish. Immediately following the action of the Board of
Directors  effecting the  redemption  of the Rights,  the Rights will
terminate  and the only right of the  holders of Rights will be to receive the
Redemption Price.

         At any time after the Rights  become  exercisable  for Common  Stock
or other  consideration  of the Company,  the Board of  Directors  may exchange
the Rights,  in whole or in part, at an exchange ratio of one share of Common
Stock, and/or  equity  securities  deemed to have the same value as one share
of Common Stock, per Right, subject to adjustment.

         Until a Right is exercised,  the holder thereof,  as such, will have
no rights as a stockholder of the Company, including, without limitation, the
right to vote or to receive  dividends.  While the distribution of the Rights
will not be taxable to stockholders or to the Company,  stockholders may,
depending upon the circumstances,  recognize taxable income in the event that
the Rights become exercisable  for Common  Stock (or other  consideration)  of
the  Company or for common stock of the acquiring company as set forth above.

         Other than those provisions relating to the principal economic terms
of the Rights,  any of the  provisions  of the Rights  Agreement  may be
amended by resolution of the Company's Board of Directors prior to the
Distribution  Date; provided that,  following a Stock  Acquisition Date, such
resolution is approved by  a  majority  of  the  Continuing  Directors  and
the  Continuing  Directors constitute a majority of the directors  then in
office.  After the  Distribution Date, the provisions of the Rights Agreement
may be amended by resolution of the Company's  Board of  Directors in order to
cure any  ambiguity,  to make changes which do not adversely affect the
interests of holders of Rights  (excluding the interests  of any  Acquiring
Person or its  affiliates  or  associates),  or to shorten or lengthen any time

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         period under the Rights  Agreement;  provided  that,  following a
Stock Acquisition  Date,  such  resolution is approved by a majority of the
Continuing Directors and the  Continuing  Directors  constitute a majority of
the directors then in office;  and  provided  further,  that no  amendment  to
adjust the time period  governing  redemption  shall be made at such time as
the  Rights are not redeemable.

         A copy of the Rights Agreement, which includes as Exhibit B the form
of Rights  Certificate,  is  filed  as an  Exhibit  hereto.  A copy  of the
Rights Agreement is available free of charge from the Company. This summary
description of the Rights does not purport to be complete  and is  qualified in
its entirety by reference to the Rights Agreement.

Completion of Split Off of the Company by Lockheed Martin Corporation

         On October  21,  1996,  Lockheed  Martin  Corporation  and the
Company jointly announced the successful completion of the split off of the
Company from Lockheed  Martin   Corporation.   A  copy  of  the  press  release
making  such announcement  is  filed  herewith  as an  Exhibit  hereto,  and
the  information contained  in such press  release is  incorporated  hereby by
reference  in its entirety.

Effectiveness of Anti-takeover Amendments to Charter and Bylaws

         Effective on October 21, 1996,  various  amendments  to the Articles
of Incorporation  and  Bylaws of the  Company  that were  approved  at the
Special Meeting of  Shareholders  held on  September  27,  1996  became
effective.  The purposes and effects of such  amendments  are described in the
Company's  Proxy Statement dated August 28, 1996 (the "Proxy  Statement"),
which  information is incorporated  herein by this  reference in its entirety.
A copy of the Restated Articles of  Incorporation  and Bylaws of the
Corporation is filed as an Exhibit hereto.  Copies of the Proxy  Statement  are
available  free of charge from the Company.

Release of Third Quarter Earnings Results

         On October 21,  1996,  the Company  issued a press  release
announcing financial  results for the third  quarter and nine months  ended
September  30, 1996. A copy of the press release making such  announcement is
filed herewith as an Exhibit  hereto,  and the  information  contained  in such
press  release is incorporated hereby by reference in its entirety.

Item 7.  Financial Statements and Exhibits

         (a)  Financial Statements of businesses acquired:  None.

         (b)  Pro Forma financial information:  None.



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         (c)  Exhibits:

                  3.1         Restated Articles of Incorporation of the Company

                  3.2         Articles of Amendment of the Company with respect
                              to the Junior  Participating  Class A Preferred
                              Stock

                  3.3         Restated Bylaws of the Company

                  4.1         Rights Agreement,  dated as of October 21, 1996,
                              between Martin Marietta  Materials, Inc. and
                              First Union National Bank of North Carolina
                              (incorporated by reference to Exhibit 1 to the
                              Martin Marietta Materials,  Inc.  registration
                              statement on Form 8-A filed with the Securities
                              and Exchange Commission on October 21, 1996)

                  99.1        Press  Release  of  Martin  Marietta   Materials,
                              Inc.,  dated  October  21,  1996, announcing
                              completion of exchange offer

                  99.2        Press  Release  of  Martin  Marietta   Materials,
                              Inc.,  dated  October  21,  1996, announcing
                              third quarter earnings results





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                                   SIGNATURES

         Pursuant to the  requirements  of the Securities  Exchange Act of
1934, the  registrant  has duly  caused  this report to be signed on its behalf
by the undersigned hereunto duly authorized.



                                                MARTIN MARIETTA MATERIALS, INC.



                                                /s/ Bruce A. Deerson
                                                Name:  Bruce A. Deerson
                                                Title:   Vice President and
                                                          General Counsel

October  25, 1996







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                                  EXHIBIT INDEX

Exhibit

3.1      Restated Articles of Incorporation of the Company

3.2      Articles of Amendment of the Company with respect to the Junior
         Participating Class A Preferred Stock

3.3      Restated Bylaws of the Company

99.1     Press Release of Martin Marietta Materials, Inc., dated October 21,
         1996, announcing completion of exchange offer

99.2     Press Release of Martin Marietta Materials, Inc., dated October 21,
         1996, announcing third quarter earnings results



1
                                    RESTATED
                            ARTICLES OF INCORPORATION
                                       OF
                         MARTIN MARIETTA MATERIALS, INC.


     1.  The name of the corporation is Martin Marietta Materials, Inc.
(hereinafter the "Corporation").

     2.  The number of shares the Corporation is authorized to issue is One
Hundred Ten Million (110,000,000), divided into One Hundred Million
(100,000,000) Common Shares and Ten Million (10,000,000) Preferred Shares, each
with a par value of one cent ($.01) per share.

The  preferences,  limitations  and relative  rights of each class and series of
shares are as follows:

         (a)  Common Shares
              -------------

              The common shares shall be entitled to one vote per share and to
              all other rights of shareholders subject only to any rights
              granted to Preferred Shares under subparagraph (b) of this Article
              2.

         (b)  Preferred Shares
              ----------------

              The Preferred Shares may be issued in one or more series with such
              designations, preferences, limitations, and relative rights as the
              board of directors may determine from time to time in accordance
              with applicable law.

     3.  The address of the registered office of the Corporation in the State of
North Carolina is 225 Hillsborough Street, Raleigh, Wake County, North Carolina
27603; and the name of its registered agent at such address is CT Corporation
System.

     4.  The name and address of the incorporator are Russell M. Robinson, II,
1900 Independence Center, Charlotte, Mecklenburg County, North Carolina 28246.

     5.  (a) The number of directors of the Corporation shall be not less than
nine (9) nor more than eleven (11). By vote of a majority of the Board of
Directors or shareholders of the Corporation, the number of directors of the
Corporation may be increased or decreased, from time to time, within the range
above specified; provided, however, that the tenure of office of a director
shall not be affected by any decrease in the number of directors so made by the
Board or the shareholders.

             (b)(i) The directors shall be divided into three classes,
             designated Class I, Class II and Class III. Each class shall
             consist, as nearly as may






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             be possible, of one-third of the total number of directors
             constituting the Board of Directors. Prior to the 1997 annual
             meeting of shareholders, the Board of Directors shall determine
             which directors shall be designated as Class I, Class II and Class
             III directors. The term of the initial Class I directors shall
             terminate on the date of the 1997 annual meeting of shareholders;
             the term of the initial Class II directors shall terminate on the
             date of the 1998 annual meeting of shareholders; and the term of
             the initial Class III directors shall terminate on the date of the
             1999 annual meeting of shareholders. At each annual meeting of
             shareholders beginning in 1997, successors to the class of
             directors whose term expires at that annual meeting shall be
             elected for a three-year term. Those persons who receive the
             highest number of votes at a meeting at which a quorum is present
             shall be deemed to have been elected.

       (ii)  If the number of directors is changed, any increase or decrease
             shall be apportioned among the classes so as to maintain the number
             of directors in each class as nearly equal as possible, but in no
             case will a decrease in the number of directors shorten the term of
             any incumbent director. A director shall hold office until the
             annual meeting for the year in which his or her term expires and
             until his or her successor shall be elected and shall qualify,
             subject, however, to prior death, resignation, retirement,
             disqualification or removal from office.

       (iii) Notwithstanding the foregoing, whenever the holders of any one or
             more classes or series of Preferred Shares issued by the
             Corporation shall have the right, voting separately by class or
             series, to elect directors at an annual or special meeting of
             shareholders, the election, term of office, filling of vacancies
             and other features of such directorships shall be governed by the
             terms of these Restated Articles of Incorporation or the resolution
             or resolutions adopted by the Board of Directors pursuant to
             Article 2(b) of these Restated Articles of Incorporation applicable
             thereto, and such directors so elected shall not be divided into
             classes pursuant to this Article 5(b) unless expressly provided by
             the terms of such Preferred Shares.

     (c)  Vacancies in the Board of Directors, except for vacancies resulting
from an increase in the number of directors, shall be filled only by a majority
vote of the remaining



                                       2
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directors then in office, though less than a quorum, except that vacancies
resulting from removal from office by a vote of the shareholders may be filled
by the shareholders at the same meeting at which such removal occurs. Vacancies
resulting from an increase in the number of directors shall be filled only by a
majority vote of the Board of Directors. Any director elected to fill a vacancy
shall hold office until the next shareholders' meeting at which directors are
elected. No decrease in the number of directors constituting the Board of
Directors shall affect the tenure of any incumbent director.

     (d)  Except as otherwise provided herein, any of the directors or the
entire Board of Directors, as the case may be, may be removed at any time, but
only for cause, by a vote of the shareholders and if the number of votes cast
to remove such director(s) or the entire Board of Directors, as the case may
be, exceeds the number of votes cast not to remove such director(s) or the
entire Board of Directors, as the case may be. Cause for removal shall be
deemed to exist only if the director(s) whose removal is proposed has been
convicted in a court of competent jurisdiction of a felony or has been adjudged
by a court of competent jurisdiction to be liable for fraudulent or dishonest
conduct, or gross abuse of authority or discretion, with respect to the
Corporation, and such conviction or adjudication has become final and
non-appealable. If a director is elected by a voting group of shareholders,
only the shareholders of that voting group may participate in the vote to
remove such director. A director may not be removed by the shareholders at a
meeting unless the notice of the meeting states the purpose, or one of the
purposes, of the meeting is removal of the director.  If any directors are so
removed, new directors may be elected at the same meeting.

     6.  To the fullest extent permitted by the North Carolina Business
Corporation Act as it exists or may hereafter be amended, no person who is
serving or who has served as a director of the Corporation shall be personally
liable to the Corporation or any of its shareholders for monetary damages for
breach of duty as a director. No amendment or repeal of this Article, nor the
adoption of any provision to these Restated Articles of Incorporation
inconsistent with this Article, shall eliminate or reduce the protection
granted herein with respect to any matter that occurred prior to such
amendment, repeal or adoption.

     7.  The provision of Article 9 of the North Carolina Business Corporation
Act entitled "The North Carolina Shareholder Protection Act" and of Article 9A
entitled "The North Carolina Control Share Acquisition Act" shall not be
applicable to the Corporation.

     8.  (a) Any purchase by the Corporation of shares of Voting Stock (as
hereinafter defined) from an Interested Shareholder (as hereinafter defined)
who has beneficially owned



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4




such  securities  for less than two years prior to the date of such  purchase
or any agreement in respect thereof, other than pursuant to an offer to the
holders of all of the outstanding  shares of the same class as those so
purchased,  at a per share price in excess of the Market Price (as hereinafter
defined),  at the time  of such  purchase  or any  agreement  in  respect
thereof  (whichever  is earlier), of the shares so purchased,  shall require
the affirmative vote of the holders of a majority of the voting power of the
Voting  Stock not  beneficially owned by the Interested Shareholder, voting
together as a single class.

     (b)  In addition to any affirmative vote required by law or these Restated
Articles of Incorporation:

          (i)   Any merger or consolidation of the Corporation or any
                Subsidiary (as hereinafter defined) with (i) any Interested
                Shareholder or (ii) any other corporation (whether or not
                itself an Interested Shareholder) which is, or after such
                merger or consolidation would be, an Affiliate (as hereinafter
                defined) of an Interested Shareholder;

          (ii)  Any sale, lease, exchange, mortgage, pledge, transfer, or other
                disposition (in one transaction or a series of transactions) to
                or with any Interested Shareholder or any Affiliate of any
                Interested Shareholder of any assets of the Corporation or any
                Subsidiary having an aggregate Fair Market Value (as
                hereinafter defined) of $10,000,000 or more;

          (iii) The issuance or transfer by the Corporation or any Subsidiary
                (in one transaction or a series of transactions) of any equity
                securities (including any securities that are convertible into
                equity securities) of the Corporation or any Subsidiary having
                an aggregate Fair Market Value of $10,000,000 or more to any
                Interested Shareholder or any Affiliate of any Interested
                Shareholder in exchange for cash, securities, or other property
                (or combination thereof);

          (iv)  The adoption of any plan or proposal for the liquidation or
                dissolution of the Corporation proposed by or on behalf of an
                Interested Shareholder or any Affiliate of any Interested
                Shareholder; or

          (v)   Any reclassification of securities (including any reverse stock
                split), or recapitalization of the Corporation, or any merger
                or consolidation of the Corporation with any of its
                Subsidiaries, or any other transaction (whether or not with or
                into or otherwise involving an Interested Shareholder)



                                       4
5




                which has the effect, directly or indirectly, of increasing the
                proportionate share of the outstanding shares of any class of
                equity (including any securities that are convertible into
                equity securities) securities of the Corporation or any
                Subsidiary which is directly or indirectly owned by any
                Interested Shareholder or any Affiliate of any Interested
                Shareholder

shall require the  affirmative  vote of the holders of not less than (i)
66-2/3% of the voting power of the Voting Stock not beneficially owned by any
Interested Shareholder, voting together as a single class, and (ii) 80% of the
voting power of all Voting Stock, voting together as a single class; provided,
however, that no such vote shall be required for (A) the purchase by the
Corporation of shares of Voting Stock from an Interested  Shareholder  unless
such vote is required by Subparagraph  (a) of  this  Article  8,  or (B) any
transaction  approved  by a majority of the Disinterested Directors (as
hereinafter defined).

     (c)  For the purpose of this Article 8:

          (i)   A "person" shall mean any individual, firm, corporation,
                partnership, or other entity.

          (ii)  "Voting Stock" shall mean all outstanding shares of capital
                stock of the Corporation entitled to vote generally in the
                election of directors and each reference to a proportion of
                shares of Voting Stock shall refer to such proportion of the
                votes entitled to be cast by such shares.

          (iii) "Interested Shareholder" shall mean any person who or which:

                (A) is the beneficial owner, directly or indirectly, of 5% or
                    more of the outstanding Voting Stock;

                (B) is an Affiliate of the Corporation and at any time within
                    the two-year period immediately prior to the date as of
                    which a determination is being made was the beneficial
                    owner, directly or indirectly, of 5% or more of the
                    outstanding Voting Stock; or

                (C) is an assignee of or has otherwise succeeded to any shares
                    of Voting Stock which were at any time within the two-year
                    period immediately prior to the date as of which a
                    determination is being made beneficially owned by any
                    person described in



                                       5
6




                    subparagraphs (c)(iii)(A) or (B) of this Article 8 if such
                    assignment or succession shall have occurred in the course
                    of a transaction or series of transactions not involving a
                    public offering within the meaning of the Securities Act of
                    1933.

          (iv)  A person shall be a "beneficial owner" of any Voting Stock:

                (A) which such person or any of its Affiliates or Associates
                    (as hereinafter defined) beneficially owns, directly or
                    indirectly;

                (B) which such person or any of its Affiliates or Associates
                    has (a) the right to acquire (whether such right is
                    exercisable immediately or only after the passage of time)
                    pursuant to any agreement, arrangement, or understanding,
                    or upon the exercise of conversion rights, exchange rights,
                    warrants or options, or otherwise, or (b) the right to vote
                    pursuant to any agreement, arrangement, or understanding;
                    or

                (C) which are beneficially owned, directly or indirectly, by
                    any other person with which such person or any of its
                    Affiliates or Associates has any agreement, arrangement, or
                    understanding for the purpose of acquiring, holding,
                    voting, or disposing of any shares of Voting Stock.

          (v)   For the purposes of determining whether a person is an
                Interested Shareholder, the number of shares of Voting Stock
                deemed to be outstanding shall include shares deemed owned
                through application of subparagraph (c)(iv) of this Article 8,
                but shall not include any other shares of Voting Stock which
                may be issuable pursuant to any agreement, arrangement, or
                understanding, or upon exercise of conversion rights, warrants
                or options, or otherwise.

          (vi)  "Affiliate" and "Associate" shall have the respective meanings
                ascribed to such terms in Rule 12b-2 of the General Rules and
                Regulations under the Securities Exchange Act of 1934, as in
                effect on November 1, 1993.

          (vii) "Subsidiary" shall mean any corporation of which a majority of
                the shares thereof entitled to



                                       6
7




                vote generally in the election of directors is owned, directly
                or indirectly, by the Corporation.

          (viii)"Market Price" shall mean: the last closing sale price
                immediately preceding the time in question of a share of the
                stock in question on the Composite Tape for New York Stock
                Exchange -- Listed Stocks, or if such stock is not quoted on
                the Composite Tape, on the New York Stock Exchange, Inc., or if
                such stock is not listed on such Exchange, on the principal
                United States securities exchange registered under the
                Securities Exchange Act of 1934 on which such stock is listed,
                or if such stock is not listed on any such exchange, the last
                closing bid quotation with respect to a share of such stock
                immediately preceding the time in question on the National
                Association of Securities Dealers, Inc. Automated Quotations
                System or any system then in use (or any other system of
                reporting or ascertaining quotations then available), or if
                such stock is not so quoted, the Fair Market Value at the time
                in question of a share of such stock as determined by the Board
                of Directors in good faith.

          (ix)  "Fair Market Value" shall mean:

                (A) in the case of stock, the Market Price, and

                (B) in the case of property other than cash or stock, the fair
                    market value of such property on the date in question as
                    determined by the Board of Directors in good faith.

          (x)   "Disinterested Director" shall mean any member of the Board of
                Directors of the Corporation who is not an Affiliate or
                Associate of an Interested Shareholder and was a member of the
                Board of Directors prior to the time that the Interested
                Shareholder became an Interested Shareholder, and any successor
                of a Disinterested Director who is not an Affiliate or
                Associate of an Interested Shareholder as is recommended to
                succeed a Disinterested Director by a majority of Disinterested
                Directors then on the Board of Directors.

     (d)  A majority of the Disinterested Directors shall have the power and
duty to determine for the purposes of this Article 8, on the basis of
information known to them after reasonable inquiry, whether a person is an
Interested Shareholder or a transaction or series of transactions constitutes
one of the transactions described in subparagraph (b) of this Article 8.




                                       7
8


     (e)  Notwithstanding any other provisions of these Restated Articles of
Incorporation (and notwithstanding the fact that a lesser percentage may be
specified by law, these Restated Articles of Incorporation, or the Bylaws of
the Corporation), the affirmative vote of not less than (i) 66-2/3% of the
voting power of the Voting Stock not beneficially owned by any Interested
Shareholder, voting together as a single class, and (ii) 80% of the voting
power of all Voting Stock, voting together as a single class, shall be required
to amend, repeal, or adopt any provisions inconsistent with this Article 8.

     9. At any time in the interval between annual meetings, special meetings
of the shareholders may be called by the Chairman of the Board, President, or
by the Board of Directors or the Executive Committee by vote at a meeting or in
writing with or without a meeting. Special meetings of the shareholders may not
be called by any other person or persons.

     These Restated Articles of Incorporation shall be effective at 8:00 a.m.
(EDT) on the date of filing of these Restated Articles of Incorporation with
the Secretary of State of North Carolina.

     This the 18th day of October 1996.



                             MARTIN MARIETTA MATERIALS, INC.

                             By:/s/ Bruce A. Deerson
                                -------------------------------------
                                Bruce A. Deerson
                                Vice President and General Counsel









0131319.06




1






                              ARTICLES OF AMENDMENT
                       OF MARTIN MARIETTA MATERIALS, INC.
                               WITH RESPECT TO THE
                 JUNIOR PARTICIPATING CLASS A PREFERRED STOCK OF

                    Pursuant to Sections 55-6-02 and 55-10-06
                         of the Business Corporation Act
                         of the State of North Carolina

          Martin Marietta Materials, Inc., a corporation organized and existing
under the Business Corporation Act of the State of North Carolina (the
"Corporation"), does hereby submit these Articles of Amendment for the purpose
of amending its articles of incorporation to fix the preferences, limitations
and relative rights of a series of a class of its shares:

          1. The name of the Corporation is MARTIN MARIETTA MATERIALS, INC.

          2. Pursuant to the authority conferred upon the Board of Directors by
Article 2 of the Articles of Incorporation of this Corporation and in accordance
with the provisions of Section 55-6-02 of the North Carolina Business
Corporation Act, the Board of Directors has duly adopted an amendment to the
Articles of Incorporation of the Corporation determining certain preferences,
privileges, limitations and relative rights (within the limits set forth in
Section 55-6-01 of the North Carolina Business Corporation Act) of a new series
of the Corporation's Junior Participating Class A Preferred Stock, par value
$0.01, before the issuance of any shares of such series, the text of which
amendment reads in full as follows:

          RESOLVED, that pursuant to the authority vested in the Board of
Directors of this Corporation in accordance with the provisions of its Articles
of Incorporation, as amended, a series of Preferred Stock of the Corporation be
and it hereby is created, and that the designation and amount thereof and the
voting powers, preferences and relative, participating, optional and other
special rights of the shares of such series, and the qualifications, limitations
and restrictions thereof are as follows:

          Section 1. Designation and Amount. The shares of such series shall be
designated as "Class A Preferred Stock" and the number of shares constituting
such series shall be 100,000.

          Section 2. Dividends and Distributions.










2




          (A) Subject to the prior and superior rights of the holders of any
shares of any series of Preferred Stock ranking prior and superior to the shares
of Class A Preferred Stock with respect to dividends, the holders of shares of
Class A Preferred Stock shall be entitled to receive, when, as and if declared
by the Board of Directors out of funds legally available for the purpose,
quarterly dividends payable in cash on the first day of January, April, July and
October in each year (each such date being referred to herein as a "Quarterly
Dividend Payment Date"), commencing on the first Quarterly Dividend Payment Date
after the first issuance of a share or fraction of a share of Class A Preferred
Stock, in an amount per share (rounded to the nearest cent), subject to the
provision for adjustment hereinafter set forth, equal to 1000 times the
aggregate per share amount of all cash dividends, and 1000 times the aggregate
per share amount (payable in kind) of all non-cash dividends or other
distributions other than a dividend payable in shares of Common Stock or a
subdivision of the outstanding shares of Common Stock (by reclassification or
otherwise), declared on the Common Stock, par value $.01 per share, of the
Corporation (the "Common Stock") since the immediately preceding Quarterly
Dividend Payment Date, or, with respect to the first Quarterly Dividend Payment
Date, since the first issuance of any share or fraction of a share of Class A
Preferred Stock. In the event the Corporation shall at any time (i) declare any
dividend on Common Stock payable in shares of Common Stock, (ii) subdivide the
outstanding Common Stock, or (iii) combine the outstanding Common Stock into a
smaller number of shares, then in each such case the amount to which holders of
shares of Class A Preferred Stock were entitled immediately prior to such event
under clause (b) of the preceding sentence shall be adjusted by multiplying such
amount by a fraction the numerator of which is the number of shares of Common
Stock outstanding immediately after such event and the denominator of which is
the number of shares of Common Stock that were outstanding immediately prior to
such event.

          (B) The Corporation shall declare a dividend or distribution on the
Class A Preferred Stock as provided in paragraph (A) above immediately after it
declares a dividend or distribution on the Common Stock (other than a dividend
payable in shares of Common Stock).

          (C) Dividends shall begin to accrue and be cumulative on outstanding
shares of Class A Preferred Stock from the Quarterly Dividend Payment Date next
preceding the date of issue of such shares of Class A Preferred Stock, unless
the date of issue of such shares is prior to the record date for the first
Quarterly Dividend Payment Date, in which case dividends on such shares shall
begin to accrue from the date of issue of such shares, or unless the date of
issue is a Quarterly Dividend Payment Date or is a date after the record date
for the determination of holders of shares of Class A Preferred Stock entitled
to receive a quarterly dividend and before such



                                       2
3




Quarterly Dividend Payment Date, in either of which events such dividends shall
begin to accrue and be cumulative from such Quarterly Dividend Payment Date.
Accrued but unpaid dividends shall not bear interest. Dividends paid on the
shares of Class A Preferred Stock in an amount less than the total amount of
such dividends at the time accrued and payable on such shares shall be allocated
pro rata on a share-by-share basis among all such shares at the time
outstanding. The Board of Directors may fix a record date for the determination
of holders of shares of Class A Preferred Stock entitled to receive payment of a
dividend or distribution declared thereon, which record date shall be no more
than thirty (30) days prior to the date fixed for the payment thereof.

          Section 3. Voting Rights. The holders of shares of Class A Preferred
Stock shall have the following voting rights:

          (A) Subject to the provision for adjustment hereinafter set forth,
each share of Class A Preferred Stock shall entitle the holder thereof to 1000
votes on all matters submitted to a vote of the stockholders of the Corporation.
In the event the Corporation shall at any time (i) declare any dividend on
Common Stock payable in shares of Common Stock, (ii) subdivide the outstanding
Common Stock, or (iii) combine the outstanding Common Stock into a smaller
number of shares, then in each such case the number of votes per share to which
holders of shares of Class A Preferred Stock were entitled immediately prior to
such event shall be adjusted by multiplying such number by a fraction the
numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of
shares of Common Stock that were outstanding immediately prior to such event.

          (B) Except as otherwise provided herein or by law, the holders of
shares of Class A Preferred Stock and the holders of shares of Common Stock
shall vote together as one class on all matters submitted to a vote of
stockholders of the Corporation.

          (C) (i) If at any time dividends on any Class A Preferred Stock shall
be in arrears in an amount equal to four (4) quarterly dividends thereon, the
occurrence of such contingency shall mark the beginning of a period (herein
called a "default period") which shall extend until such time when all accrued
and unpaid dividends for all previous quarterly dividend periods and for the
current quarterly dividend period on all shares of Class A Preferred Stock then
outstanding shall have been declared and paid or set apart for payment. During
each default period, all holders of Preferred Stock (including holders of the
Class A Preferred Stock) with dividends in arrears in an amount equal to four
(4) quarterly dividends thereon, voting as a class, irrespective of series,
shall have the right to elect two (2) Directors.





                                       3
4




          (ii) During any default period, such voting right of the holders of
Class A Preferred Stock may be exercised initially at a special meeting called
pursuant to subparagraph (iii) of this Section 3(C) or at any annual meeting of
stockholders, and thereafter at annual meetings of stockholders, provided that
neither such voting right nor the right of the holders of any other series of
Preferred Stock, if any, to increase, in certain cases, the authorized number of
Directors shall be exercised unless the holders of ten percent (10%) in number
of shares of Preferred Stock outstanding shall be present in Person or by proxy.
The absence of a quorum of the holders of Common Stock shall not affect the
exercise by the holders of Preferred Stock of such voting right. At any meeting
at which the holders of Preferred Stock shall exercise such voting right
initially during an existing default period, they shall have the right, voting
as a class, to elect Directors to fill such vacancies, if any, in the Board of
Directors as may then exist up to two (2) Directors or, if such right is
exercised at an annual meeting, to elect two (2) Directors. If the number which
may be so elected at any special meeting does not amount to the required number,
the holders of the Preferred Stock shall have the right to make such increase in
the number of Directors as shall be necessary to permit the election by them of
the required number. After the holders of the Preferred Stock shall have
exercised their right to elect Directors in any default period and during the
continuance of such period, the number of Directors shall not be increased or
decreased except by vote of the holders of Preferred Stock as herein provided or
pursuant to the rights of any equity securities ranking senior to or pari passu
with the Class A Preferred Stock.

          (iii) Unless the holders of Preferred Stock shall, during an existing
default period, have previously exercised their right to elect Directors, the
Board of Directors may order, or any stockholder or stockholders owning in the
aggregate not less than ten percent (10%) of the total number of shares of
Preferred Stock outstanding, irrespective of series, may request, the calling of
a special meeting of the holders of Preferred Stock, which meeting shall
thereupon be called by the President, a Vice-President or the Secretary of the
Corporation. Notice of such meeting and of any annual meeting at which holders
of Preferred Stock are entitled to vote pursuant to this paragraph (C)(iii)
shall be given to each holder of record of Preferred Stock by mailing a copy of
such notice to him at his last address as the same appears on the books of the
Corporation. Such meeting shall be called for a time not earlier than twenty
(20) days and not later than sixty (60) days after such order or request or in
default of the calling of such meeting within sixty (60) days after such order
or request, such meeting may be called on similar notice by any stockholder or
stockholders owning in the aggregate not less than ten percent (10%) of the
total number of shares of Preferred Stock outstanding. Notwithstanding the
provisions of this paragraph (C)(iii), no such special meeting shall be called
during the period within sixty (60) days



                                       4
5




immediately preceding the date fixed for the next annual meeting of the
stockholders.

          (iv) In any default period, the holders of Common Stock, and other
classes of stock of the Corporation if applicable, shall continue to be entitled
to elect the whole number of Directors until the holders of Preferred Stock
shall have exercised their right to elect two (2) Directors voting as a class,
after the exercise of which right (x) the Directors so elected by the holders of
Preferred Stock shall continue in office until their successors shall have been
elected by such holders or until the expiration of the default period, and (y)
any vacancy in the Board of Directors may (except as provided in paragraph
(C)(ii) of this Section 3) be filled by vote of a majority of the remaining
Directors theretofore elected by the holders of the class of stock which elected
the Director whose office shall have become vacant. References in this paragraph
(C) to Directors elected by the holders of a particular class of stock shall
include Directors elected by such Directors to fill vacancies as provided in
clause (y) of the foregoing sentence.

          (v) Immediately upon the expiration of a default period, (x) the right
of the holders of Preferred Stock as a class to elect Directors shall cease, (y)
the term of any Directors elected by the holders of Preferred Stock as a class
shall terminate, and (z) the number of Directors shall be such number as may be
provided for in the articles of incorporation or by-laws irrespective of any
increase made pursuant to the provisions of paragraph (C)(ii) of this Section 3
(such number being subject, however, to change thereafter in any manner provided
by law or in the articles of incorporation or by-laws). Any vacancies in the
Board of Directors effected by the provisions of clauses (y) and (z) in the
preceding sentence may be filled by a majority of the remaining Directors.

          (D) Except as set forth herein, holders of Class A Preferred Stock
shall have no special voting rights and their consent shall not be required
(except to the extent they are entitled to vote with holders of Common Stock as
set forth herein) for taking any corporate action.

          Section 4. Certain Restrictions.

          (A) Whenever quarterly dividends or other dividends or distributions
payable on the Class A Preferred Stock as provided in Section 2 are in arrears,
thereafter and until all accrued and unpaid dividends and distributions, whether
or not declared, on shares of Class A Preferred Stock outstanding shall have
been paid in full, the Corporation shall not:

                (i) declare or pay  dividends  on, make any other  distributions
        on, or redeem or purchase or  otherwise  acquire for  consideration  any
        shares of stock ranking junior (either



                                       5
6




        as to dividends or upon liquidation, dissolution or winding up) to the
        Class A Preferred Stock;

                (ii) declare or pay dividends on or make any other distributions
        on any shares of stock  ranking on a parity  (either as to  dividends or
        upon liquidation,  dissolution or winding up) with the Class A Preferred
        Stock,  except dividends paid ratably on the Class A Preferred Stock and
        all such parity  stock on which  dividends  are payable or in arrears in
        proportion  to the total amounts to which the holders of all such shares
        are then entitled;

                (iii) redeem or purchase or otherwise  acquire for consideration
        shares of any stock ranking on a parity  (either as to dividends or upon
        liquidation,  dissolution  or  winding  up) with the  Class A  Preferred
        Stock, provided that the Corporation may at any time redeem, purchase or
        otherwise acquire shares of any such parity stock in exchange for shares
        of any stock of the  Corporation  ranking junior (either as to dividends
        or upon dissolution, liquidation or winding up) to the Class A Preferred
        Stock;

                (iv) purchase or otherwise  acquire for consideration any shares
        of Class A Preferred  Stock,  or any shares of stock ranking on a parity
        with the Class A Preferred  Stock,  except in accordance with a purchase
        offer made in writing or by  publication  (as determined by the Board of
        Directors) to all holders of such shares upon such terms as the Board of
        Directors,  after  consideration of the respective annual dividend rates
        and other relative rights and  preferences of the respective  series and
        classes, shall determine in good faith will result in fair and equitable
        treatment among the respective series or classes.

          (B) The Corporation shall not permit any subsidiary of the Corporation
to purchase or otherwise acquire for consideration any shares of stock of the
Corporation unless the Corporation could, under paragraph (A) of this Section 4,
purchase or otherwise acquire such shares at such time and in such manner.

          Section 5. Reacquired Shares. Any shares of Class A Preferred Stock
purchased or otherwise acquired by the Corporation in any manner whatsoever
shall be retired and canceled promptly after the acquisition thereof. All such
shares shall upon their cancellation become authorized but unissued shares of
Preferred Stock and may be reissued as part of a new series of Preferred Stock
to be created by resolution or resolutions of the Board of Directors, subject to
the conditions and restrictions on issuance set forth herein.

          Section 6. Liquidation, Dissolution or Winding Up. (A) Upon any
liquidation (voluntary or otherwise), dissolution or winding up of the
Corporation, no distribution shall be made to



                                       6
7




the holders of shares of stock ranking junior (either as to dividends or upon
liquidation, dissolution or winding up) to the Class A Preferred Stock unless,
prior thereto, the holders of shares of Class A Preferred Stock shall have
received $10.00 per share, plus an amount equal to accrued and unpaid dividends
and distributions thereon, whether or not declared, to the date of such payment.
Thereafter, the holders of the Class A Preferred Stock shall be entitled to
receive an aggregate amount per share, subject to the provision for adjustment
hereinafter set forth, equal to 1000 times the aggregate amount to be
distributed per share to holders of shares of Common Stock. Following the
payment of the foregoing, holders of Class A Preferred Stock and holders of
shares of Common Stock shall receive their ratable and proportionate share of
the remaining assets to be distributed.

          (B) In the event, however, that there are not sufficient assets
available to permit payment in full of the Class A Preferred Stock liquidation
preference and the liquidation preferences of all other series of preferred
stock, if any, which rank on a parity with the Class A Preferred Stock, then
such remaining assets shall be distributed ratably to the holders of such parity
shares in proportion to their respective liquidation preferences.

          (C) In the event the Corporation shall at any time (i) declare any
dividend on Common Stock payable in shares of Common Stock, (ii) subdivide the
outstanding Common Stock (by reclassification or otherwise), or (iii) combine
the outstanding Common Stock into a smaller number of shares, then in each such
case the aggregate amount to which holders of shares of the Class A Preferred
Stock were entitled immediately prior to such event shall be adjusted by
multiplying such amount by a fraction the numerator of which is the number of
shares of Common Stock outstanding immediately after such event and the
denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

          Section 7. Consolidation, Merger, etc. In case the Corporation shall
enter into any consolidation, merger, combination or other transaction in which
the shares of Common Stock are exchanged for or changed into other stock or
securities, cash and/or any other property, then in any such case the shares of
Class A Preferred Stock shall at the same time be similarly exchanged or changed
in an amount per share (subject to the provision for adjustment hereinafter set
forth) equal to 1000 times the aggregate amount of stock, securities, cash
and/or any other property (payable in kind), as the case may be, into which or
for which each share of Common Stock is changed or exchanged. In the event the
Corporation shall at any time (i) declare any dividend on Common Stock payable
in shares of Common Stock, (ii) subdivide the outstanding Common Stock (by
reclassification or otherwise), or (iii) combine the outstanding Common Stock
into a smaller number of shares, then in each such case the amount set forth in
the preceding sentence with respect to the exchange or



                                       7
8




change of shares of Class A Preferred Stock shall be adjusted by multiplying
such amount by a fraction the numerator of which is the number of shares of
Common Stock outstanding immediately after such event and the denominator of
which is the number of shares of Common Stock that were outstanding immediately
prior to such event.

          Section 8. No Redemption. The shares of Class A Preferred Stock shall
not be redeemable.

          Section 9. Ranking. The Class A Preferred Stock shall rank junior to
all other series of the Corporation's Preferred Stock as to the payment of
dividends and the distribution of assets, unless the terms of any such series
shall provide otherwise.

          Section 10. Amendment. The Articles of incorporation, as amended, of
the Corporation shall not be further amended in any manner which would
materially alter or change the powers, preferences or special rights of the
Class A Preferred Stock so as to affect them adversely without the affirmative
vote of the holders of a majority or more of the outstanding shares of Class A
Preferred Stock voting separately as a class.

          Section 11. Fractional Shares. Class A Preferred Stock may be issued
in fractions of a share which shall entitle the holder, in proportion to such
holder's fractional shares, to exercise voting rights, receive dividends,
participate in distributions and to have the benefit of all other rights of
holders of Class A Preferred Stock.

          3. The date on which the foregoing amendment to the Articles of
Incorporation of the Corporation was adopted was July 23, 1996.

          4. The foregoing amendment to the Articles of Incorporation was duly
adopted by the Board of Directors of the Corporation, and shareholder action was
not required to adopt such amendment because the Articles of Incorporation
permit the Board of Directors to fix designations, preferences, limitations and
relative rights of series of the Corporation's preferred stock without
shareholder approval and Section 55-6-02 of the North Carolina Business
Corporation Act provides that articles of amendment so establishing the
preferences, limitations or relative rights of a class or series of stock are
effective without shareholder action.




                                       8
9




          5. These Articles of Amendment shall be effective at 8:01 a.m. (EDT)
on the date of filing of these Articles of Amendment with the Secretary of State
of North Carolina.

          IN WITNESS WHEREOF, the undersigned has executed and subscribed this
Articles of Amendment on this the 18th day of October, 1996.



                                   MARTIN MARIETTA MATERIALS, INC.


                                   By: /s/ Bruce A. Deerson
                                       -------------------------------
                                       Bruce A. Deerson
                                       Vice President and General Counsel






0186916.01


1
                                    RESTATED
                                     BYLAWS
                                       OF
                         MARTIN MARIETTA MATERIALS, INC.

(Incorporated under the laws of North Carolina, November 12, 1993, and herein
                         referred to as the "Corporation")

                                   ARTICLE I.

                                  SHAREHOLDERS

         Section 1.01.  ANNUAL  MEETINGS.  The Corporation  shall hold an
annual meeting of the shareholders for the election of directors and the
transaction of any business  within the powers of the Corporation on such date
during the month of May in each year as shall be  determined by the Board of
Directors or at such time during the year as the Board of Directors may
prescribe. Subject to Section 1.12 of these Bylaws,  any business of the
Corporation may be transacted at such annual  meeting.  Failure to hold an
annual meeting at the designated time shall not,  however,  invalidate  the
corporate  existence or affect  otherwise  valid corporate acts.

         Section 1.02. SPECIAL MEETINGS.  The power to call a special meeting
of the  shareholders  of the  Corporation  shall be  governed  by  Article 9 of
the Corporation's  Restated  Articles of  Incorporation,  as such  provision
may be amended from time to time.

         Section  1.03.  PLACE OF  MEETINGS.  All meetings of  shareholders
shall be held at such place within the United States as may be designated in
the Notice of Meeting.

         Section 1.04. NOTICE OF MEETINGS.  Not less than ten (10) days nor
more than  sixty  (60)  days  before  the date of every  shareholders'
meeting,  the Secretary  shall give to each  shareholder  entitled to vote at
such meeting and each other  shareholder  entitled to notice of the  meeting,
written or printed notice  stating the time and place of the meeting  and, in
the case of a special meeting, the purpose or purposes for which the meeting is
called, either by mail or by  presenting  it to him or her  personally  or by
leaving it at his or her residence or usual place of business.  If mailed, such
notice shall be deemed to be given when deposited in the United States mail
addressed to the  shareholder at  his or  her  post  office  address  as it
appears  on  the  records  of the Corporation,  with postage thereon prepaid.
Any meeting of shareholders,  annual or special,  may adjourn from time to time
without  further notice to a date not more than 120 days  after the  original
record  date at the same or some  other place.

         Section  1.05.  WAIVER OF NOTICE.  Any  shareholder  may waive  notice
of any meeting  before or after the meeting.  The waiver must be in writing,
signed by the  shareholder and delivered to the Corporation for inclusion in
the minutes or filing with the  corporate  records.  A  shareholder's
attendance,  in person or by proxy,  at a meeting (a) waives objection to lack
of

2


         notice or defective  notice of the meeting,  unless the  shareholder
or his proxy at the  beginning  of the  meeting  objects to holding  the
meeting or transacting  business at the meeting;  and (b) waives objection to
consideration of a particular matter at the meeting that is not within the
purpose or purposes described in the meeting notice,  unless the shareholder or
his proxy objects to considering the matter before it is voted upon.

         Section  1.06.  PRESIDING  OFFICER AND  SECRETARY AT MEETINGS.  At
each meeting of shareholders  the Chairman of the Board, or in his or her
absence the President, or in their absence, the person designated in writing by
the Chairman of the Board, or if no person is so designated,  then a person
designated by the Board of Directors, shall preside as chairman of the meeting;
if no person is so designated,  then the meeting shall choose a chairman by a
majority of all votes cast at a meeting at which a quorum is present. The
Secretary, or in the absence of the Secretary,  a person designated by the
chairman of the meeting, shall act as secretary of the meeting.

         Section  1.07.  QUORUM.  Shares  entitled to vote as a separate
voting group  may take  action  on a matter  at the  meeting  only if a quorum
of those shares exists.  A majority of the votes entitled to be cast on the
matter by the voting  group  constitutes  a quorum of that  voting  group  for
action on that matter.

         Once a share is represented for any purpose at a meeting,  it is
deemed present  for  quorum  purposes  for the  remainder  of the  meeting  and
for any adjournment  of that meeting unless a new record date is or must be set
for that adjourned meeting.

         In  the  absence  of  a  quorum  at  the  opening  of  any  meeting
of shareholders,  such meeting may be adjourned  from time to time by the vote
of a majority  of the  votes  cast on the  motion to  adjourn;  and,  subject
to the provisions of Section 1.04, at any subsequent session of a meeting that
has been adjourned any business may be transacted  that might have been
transacted at the original meeting if a quorum exists with respect to the
matter proposed.

         Section 1.08.  PROXIES.  Shares may be voted either in person or by
one or more  proxies  authorized  by a written  appointment  of proxy  signed
by the shareholder or by his duly authorized  attorney in fact. An appointment
of proxy is valid  for  eleven  (11)  months  from the  date of its  execution,
unless a different period is expressly provided in the appointment form.

         Section  1.09.  VOTING OF  SHARES.  Subject to the  provisions  of the
Articles  of  Incorporation,  each outstanding share shall be entitled to one
vote on each matter voted on at a meeting of shareholders.

         Except in the election of directors  as governed by the  provisions
of Section  2.03,  if a quorum  exists,  action  on a matter  by a voting
group is approved if the votes cast within the voting group  favoring  the
action  exceed the votes cast opposing the action,  unless a greater vote is
required by law or the Articles of Incorporation or these Bylaws.



3


         Absent  special  circumstances,  shares  of  the  Corporation  are
not entitled  to vote  if  they  are  owned,  directly  or  indirectly,  by
another corporation in which the Corporation owns, directly or indirectly, a
majority of the shares  entitled to vote for directors of the second
corporation;  provided that this provision does not limit the power of the
Corporation to vote its own shares held by it in a fiduciary capacity.

         Section 1.10.  SHAREHOLDERS' LIST. Before each meeting of
shareholders, the  Secretary of the  Corporation  shall  prepare an
alphabetical  list of the shareholders  entitled to notice of such meeting.
The list shall be arranged by voting  group (and within each voting  group,  by
class or series of shares) and show the  address of and  number of shares  held
by each  shareholder.  The list shall be kept on file at the principal office
of the Corporation,  or at a place identified in the meeting notice in the city
where the meeting will be held, for the period  beginning two business days
after notice of the meeting is given and continuing  through the meeting,  and
shall be available  for  inspection by any shareholder,  his agent or attorney,
at any time during regular business hours.  The list  shall  also be  available
at the  meeting  and  shall be  subject  to inspection  by any  shareholder,
his agent or attorney,  at any time during the meeting or any adjournment
thereof.

         Section  1.11.  INSPECTORS  OF  ELECTION.  In advance of any meeting
of shareholders,  the Board of Directors may appoint  Inspectors of Election to
act at  such  meeting  or at  any  adjournment  or  adjournments  thereof.  If
such Inspectors  are not so  appointed  or fail or refuse to act, the chairman
of any such meeting may (and shall upon the request of shareholders  entitled
to cast a majority  of all  the  votes  entitled  to be  cast at the  meeting)
make  such appointments. No such Inspector need be a shareholder of the
Corporation.

         If there are three (3) or more  Inspectors  of Election,  the
decision, act or  certificate  of a majority  shall be  effective  in all
respects as the decision,  act or certificate of all. The Inspectors of
Election shall determine the  number  of  shares  outstanding,  the  voting
power  of each,  the  shares represented  at the  meeting,  the  existence  of
a  quorum,  the  authenticity, validity  and  effect of  proxies;  shall
receive  votes,  ballots,  assents or consents,  hear and determine all
challenges and questions in any way arising in connection  with the vote,
count and tabulate all votes,  assents and consents, and  determine  the
result;  and do such acts as may be proper to  conduct  the election  and the
vote  with  fairness  to all  shareholders.  On  request,  the Inspectors
shall make a report in writing of any challenge,  question or matter determined
by them,  and shall make and execute a certificate  of any fact found by them.

         Section 1.12.  DIRECTOR NOMINATIONS AND SHAREHOLDERS BUSINESS.

         (a) Advance Notice of  Nominations  of Directors.  Only persons who
are nominated in accordance  with the  provisions set forth in these Bylaws
shall be eligible  to be  elected  as  directors  at an  annual  or  special
meeting  of shareholders. Nomination for election to the Board of Directors
shall be made by the Board of  Directors  or a  Nominating  Committee
appointed  by the Board of Directors.



4


         Nomination  for  election of any person to the Board of  Directors
may also be made by a shareholder if written notice of the nomination of such
person shall have been  delivered to the Secretary of the  Corporation at the
principal office of the  Corporation  not less than 60 days nor more than 90
days prior to the first anniversary of the preceding year's annual meeting;
provided, however, that in the event that the date of the annual  meeting is
advanced by more than 30 days or delayed by more than 60 days from such
anniversary  date,  notice by shareholder  must be so  delivered  not earlier
than the 90th day prior to such annual meeting and not later than the close of
business on the later of the 60th day prior to such  annual  meeting or the
tenth day  following  the day on which public  announcement of the date of such
meeting is first made. Each such notice shall set forth: (a) the name and
address of the shareholder who intends to make the nomination,  the beneficial
owner, if any, on whose behalf the nomination is made and of the person or
persons to be  nominated;  (b) the class and number of shares of stock of the
Corporation which are owned beneficially and of record by such  shareholder
and such  beneficial  owner,  and a  representation  that the shareholder
intends to appear in person or by proxy at the  meeting to nominate the  person
or  persons  specified  in the  notice;  (c) a  description  of all
arrangements or understandings  between the shareholder and each nominee and
any other person or persons  (naming  such person or persons)  pursuant to
which the nomination  or  nominations  are to be made by the  shareholder;  (d)
all  other information  regarding  each nominee  proposed by such  shareholder
as would be required to be included in a proxy  statement  filed pursuant to
the proxy rules of the Securities  and Exchange  Commission if the nominee had
been nominated by the Board of Directors;  and (e) the written consent of each
nominee to serve as director  of the  Corporation  if so  elected.  The
chairman of the meeting may refuse to acknowledge  the nomination of any person
not made in compliance  with the foregoing procedure.

         (b) Advance Notice of General Matters.  No business shall be
transacted at an annual  meeting of  shareholders,  except  such  business  as
shall be (a) specified  in the notice of meeting  given as  provided  in
Section  1.04,  (b) otherwise  brought  before the  meeting by or at the
direction  of the Board of Directors,  or (c)  otherwise  brought  before the
meeting by a  shareholder  of record  entitled to vote at the meeting,  in
compliance  with the procedure set forth in this Section 1.12.  For business to
be brought before an annual meeting by a shareholder  pursuant to (c) above,
the shareholder must have given timely notice in writing to the Secretary. To
be timely, a shareholder's notice must be delivered  to, or mailed to and
received at the principal  executive  offices of the  Corporation  not less
than 60 days nor more than 90 days prior to the first anniversary of the
preceding year's annual meeting;  provided,  however, that in the event that
the date of the annual  meeting is  advanced by more than 30 days or  delayed
by more  than 60 days  from such  anniversary  date,  notice by the shareholder
must be so  delivered  not earlier  than the 90th day prior to such annual
meeting and not later than the close of business on the later of the 60th day
prior to such  annual  meeting or the tenth day  following  the day on which
public announcement of the date of such meeting is first made. Notice of
actions to be brought before the annual meeting pursuant to (c) above shall set
forth as to each matter the shareholder proposes to bring before the annual
meeting (i) a brief  description  of the  business  desired  to be  brought
before the annual meeting and the reasons for brining  such  business  before
the annual  meeting, (ii) the name and address,  as they appear on the
Corporation's  books, of each shareholder  proposing such business,  (iii) the
classes and number of shares of the Corporation that are owned of record and
beneficially by such  shareholder, and (iv) any material interest of such

5


         shareholder  in such business other than his interest as shareholder
of the Corporation.  Notwithstanding  anything in these Bylaws to the contrary,
no business shall be conducted at an annual  meeting except in accordance  with
the provisions set forth in this Section 1.12. If the chairman of the annual
meeting determines  that any  business was not  properly  brought  before the
meeting in accordance  with provisions  prescribed by these Bylaws,  he shall
so declare to the meeting,  and to the extent permitted by law, any such
business not properly brought before the meeting shall not be transacted.

         (c)      General

         For purposes of this Section  1.12,  "public  announcement"  shall
mean disclosure in a press release reported by the Dow Jones News Service,
Associated Press  or  comparable  news  service  or in a  document  publicly
filed  by the Corporation with the Securities and Exchange Commission pursuant
to Sections 13, 14 or 15(d) of the Exchange Act.

         Notwithstanding  the  foregoing  provisions  of this  Section  1.12,
a shareholder shall also comply with all applicable  requirements of state law
and of the Exchange Act and the rules and regulations thereunder with respect
to the matters set forth in this  Section  1.12.  Nothing in this Section 1.12
shall be deemed to affect any rights of shareholders to request inclusion of
proposals in the Corporation's proxy statement pursuant to Rule 14a-8 under the
Exchange Act.

                                   ARTICLE II.

                               BOARD OF DIRECTORS

         Section 2.01. POWERS. The business and affairs of the Corporation
shall be managed under the direction of its Board of Directors. The Board of
Directors may exercise all the powers of the Corporation, except such as are by
statute or the Articles of  Incorporation  or the Bylaws  conferred upon or
reserved to the shareholders.

         Section  2.02.  NUMBER OF  DIRECTORS.  The number of  directors  of
the Corporation  shall  be  determined  in  accordance  with  Article  5(a)  of
the Corporation's  Restated  Articles of  Incorporation,  as such  provision
may be amended  from time to time.  No person  shall be  eligible  to be
elected  as a director for a term which expires after such person reaches the
age of 72 years.

         Section 2.03.  ELECTION OF DIRECTORS.  The election of directors of
the Corporation  shall be governed  by Article  5(b) of the  Corporation's
Restated Articles of Incorporation, as such provision may be amended from time
to time.

         Section  2.04.  CHAIRMAN  OF THE BOARD.  The Board of  Directors
shall designate  from its  membership  a Chairman  of the  Board,  who shall
have such powers and perform such duties as may be prescribed by these Bylaws
and assigned to him or her by the Board of Directors.



6


         Section 2.05.  REMOVAL.  The removal of directors of the Corporation
shall be governed by Article 5(d) of the Corporation's Restated Articles of
Incorporation, as such provision may be amended from time to time.

         Section 2.06.  VACANCIES.  Vacancies in the Board of Directors shall
be filled in accordance with Article 5(c) of the Corporation's Restated
Articles of Incorporation, as such provision may be amended from time to time.

         Section 2.07.  REGULAR  MEETINGS.  Regular  meetings of the Board of
Directors  shall be held at such time and place within or without the State of
North Carolina as may be designated by the Board of Directors.

         Section  2.08.  SPECIAL  MEETINGS.  Special  meetings  of the  Board
of Directors  may be called at any time,  at any place,  and for any purpose by
the Chairman of the Board, the President,  the Chairman of the Executive
Committee, or  upon  the  request  of a  majority  of  the  Board  of  any
officer  of the Corporation.

         Section  2.09.  NOTICE OF  MEETINGS.  Regular  meetings of the Board
of Directors  may be held  without  notice.  Notice of the place,  day, and
hour of every special  meeting of the Board of Directors shall be given to each
director twenty-four  (24) hours (or more) before the meeting,  by telephoning
the notice to such director,  or by delivering the notice to him or her
personally,  or by sending the notice to him or her by telegraph,  or by
facsimile,  or by leaving notice  at  his or  her  residence  or  usual  place
of  business,  or,  in the alternative, by mailing such notice three (3) days
(or more) before the meeting, postage  prepaid,  and  addressed  to him or her
at his or her last  known  post office address,  according to the records of
the  Corporation.  If mailed,  such notice  shall be deemed to be given when
deposited  in the United  States mail, properly addressed with postage thereon
prepaid.  If notice be given by telegram or by  facsimile,  such notice  shall
be deemed to be given when the telegram is delivered to the telegraph company
or when the facsimile is transmitted.  If the notice be given by  telephone  or
by personal  delivery,  such  notice  shall be deemed to be given at the time
of the communication or delivery. Unless required by law, by these Bylaws or by
resolution of the Board of Directors, no notice of any meeting of the Board of
Directors,  need state the business to be transacted thereat. Any meeting of
the Board of Directors,  regular or special, may adjourn from time to time to
reconvene  at the same or some other place,  and no further notice need be
given of any such adjourned meeting.

         Section  2.10.  WAIVER OF NOTICE.  Any director may waive notice of
any meeting  before or after the meeting.  The waiver must be in writing,
signed by the  director  entitled  to the  notice and  delivered  to the
Corporation  for inclusion  in the minutes or filing with the  corporate
records.  A  director's attendance at or  participation  in a meeting waives
any required notice of such meeting  unless the director at the  beginning of
the meeting,  or promptly upon arrival,  objects  to holding  the  meeting or
to  transacting  business  at the meeting  and does not  thereafter  vote for
or  assent  to  action  taken at the meeting.

         Section 2.11.  TELEPHONE MEETING.  Members of the Board, or of any
committee  thereof,  may participate in a meeting by means of conference
telephone or similar communications

7


         equipment  by means of which all persons  participating  in the
meeting can hear  each  other at the  same  time.  Participation  in this
manner  shall constitute presence in person at the meeting.

         Section 2.12.  ACTION WITHOUT MEETING.  Action required or permitted
to be taken at a meeting of the Board of Directors  may be taken  without a
meeting if the action is taken by all members of the Board. The action must be
evidenced by one or more written  consents  signed by each  director  before or
after such action,  describing the action taken,  and included in the minutes
or filed with the corporate records.

         Section 2.13. PRESIDING OFFICER AND SECRETARY AT MEETINGS. Each
meeting of the Board of Directors shall be presided over by the Chairman of the
Board of Directors or in his or her absence, by the President or if neither is
present by such member of the Board of  Directors  as shall be chosen by the
meeting.  The Secretary,  or in his or her  absence,  an  Assistant  Secretary,
shall  act as secretary of the meeting,  or if no such officer is present,  a
secretary of the meeting shall be designated by the person presiding over the
meeting.

         Section  2.14.  QUORUM  AND  VOTING.  At all  meetings  of the Board
of Directors,  one third (1/3) of the Board of Directors,  but in no case less
than two (2) directors,  shall  constitute a quorum for the  transaction of
business.  Except in cases in which it is by statute, by the Articles of
Incorporation,  or by the Bylaws  otherwise  provided,  the vote of a majority
of such quorum at a duly constituted meeting shall be sufficient to pass any
measure. In the absence of a quorum,  the directors  present by majority  vote
and without  notice other than by  announcement  may adjourn the meeting  from
time to time until a quorum shall be  present.  At any such  adjourned  meeting
at which a quorum  shall be present,  any business may be transacted which
might have been transacted at the meeting originally notified.

         Section  2.15.  PRESUMPTION  OF ASSENT.  A director who is present at
a meeting of the Board of Directors or a committee of the Board of Directors
when corporate  action is taken is deemed to have assented to the action taken
unless (a) he objects at the beginning of the meeting, or promptly upon his
arrival, to holding it or to  transacting  business  at the  meeting,  or (b)
his dissent or abstention  from the action taken is entered in the minutes of
the  meeting,  or (c) he files  written  notice of his dissent or  abstention
with the  presiding officer  of  the  meeting  before  its   adjournment  or
with  the  Corporation immediately  after the  adjournment  of the  meeting.
Such  right of dissent or abstention  is not  available  to a  director  who
votes in favor of the  action taken.

         Section  2.16.  COMPENSATION.  The Board of  Directors  may  provide
by resolution for the  compensation of directors for their services as such and
for the  payment  or  reimbursement  of any or all  expenses  incurred  by
them  in connection with such services.

                                  ARTICLE III.  COMMITTEES Section  3.01.
         COMMITTEES  OF THE BOARD.  The Board of Directors  may by  resolution
         create an Executive Committee,  an Audit Committee,  a Nominating
Committee and such other committees of the Board and appoint members of the
Board of Directors to serve on

8


         them.  The  creation of a  committee  of the Board and  appointment
of members to it must be  approved  by a majority  of the  number of  directors
in office when the action is taken.  Each  committee  of the Board must have
two or more members and, to the extent  authorized by law and specified by the
Board of Directors,  shall have and may  exercise  all of the  authority  of
the Board of Directors,  shall have and may  exercise  all of the  authority
of the Board of Directors in the management of the Corporation,  except that a
committee may not have such  powers or perform  such duties as may be (i)
inconsistent  with law, (ii)  inconsistent  with the  Articles  of
Incorporation  or  Bylaws,  or (iii) inconsistent  with the  resolution
creating  such  committee  and the authority delegated to it therein.  Each
committee  member  serves at the pleasure of the Board of Directors.  The
provisions in these Bylaws governing  meetings,  action without  meetings,
notice  and  waiver  of  notice,   and  quorum  and  voting requirements  of
the  Board  of  Directors  apply  to  committees  of the  Board established
under this section.

         Section 3.02.  MEETINGS OF  COMMITTEES.  Each committee of the Board
of Directors shall fix its own rules of procedure consistent with the
provisions of the Board of Directors  governing such committee,  and shall meet
as provided by such rules or by resolution of the Board of Directors, and it
shall also meet at the  call of its  chairman  or any two (2)  members  of such
committee.  Unless otherwise  provided by such rules or by such  resolution,
the provisions of the article of these Bylaws entitled  "Board of Directors"
relating to the place of holding and notice  required of meetings of the Board
of Directors  shall govern committees  of the  Board of  Directors.  A
majority  of each  committee  shall constitute  a quorum  thereof;  provided,
however,  that in the  absence of any member of such committee, the members
thereof present at any meeting, whether or not they constitute a quorum,  may
appoint a member of the Board of Directors to act in the place of such absent
member. Except in cases in which it is otherwise provided  by the  rules  of
such  committee  or by  resolution  of the  Board of Directors,  the vote of a
majority of such quorum at a duly constituted  meeting shall be sufficient to
pass any measure.

                                  ARTICLE IV.
                                   OFFICERS

         Section  4.01.  OFFICERS  OF  THE  CORPORATION.  The  officers  of
the Corporation  shall  consist of a President,  a Secretary,  a Treasurer  and
such elected Vice-Presidents,  Assistant Secretaries, Assistant Treasurers, and
other officers as may from time to time be appointed by or under the  authority
of the Board of Directors.  Any two or more offices may be held by the same
person, but no  officer  may act in more  than  one  capacity  where  action
of two or more officers is required.

         Section 4.02.  APPOINTMENT  AND TERM.  The officers of the
Corporation shall be  appointed by the Board of  Directors  or by a duly
appointed  officer authorized  by the  Board  of  Directors  to  appoint  one
or more  officers  or assistant  officers.  Each  officer  shall hold  office
until his or her death, resignation, retirement, removal, disqualification or
his or her successor shall have been appointed.



9


         Section 4.03.  PRESIDENT.  The President  shall be the Chief
Executive Officer of the  Corporation  and shall,  in the  absence of the
Chairman of the Board, preside at all meetings of the shareholders.  Subject to
the authority of the Board of Directors,  he or she shall have general charge
and  supervision of the  Business  and  affairs  of the  Corporation.  He or
she may  sign  with the Secretary or an Assistant Secretary certificates of
stock of the Corporation. He or she  shall  have  the  authority  to  sign  and
execute  in the  name of the Corporation all deeds, mortgages,  bonds,
contracts or other instruments.  He or she shall have the authority to vote
stock in other corporations,  and he or she shall  perform  such  other  duties
of  management  as may be  prescribed  by a resolution or  resolutions  or as
otherwise may be assigned to him or her by the Board  of  Directors.  He or she
shall  have the  authority  to  delegate  such authorization  and power as
vested in him or her by these  Bylaws to some  other officer  or  employee  or
agent  of the  Corporation  as he or she  shall  deem appropriate.

         Section  4.04.  VICE-PRESIDENTS.  In the absence of the President or
in the event of his or her death,  inability or refusal to act, the
Vice-Presidents in the order of their length of service, as such, unless
otherwise determined by the Board of Directors,  shall perform the duties of
the President,  and when so acting shall have the powers of and be subject to
all the restrictions  upon the President.  In the absence of the  Chairman of
the Board or the  President,  any Vice-President  may  sign,  with  the
Secretary  or  an  Assistant   Secretary, certificates for shares of the
Corporation;  and shall perform such other duties as from time to time may be
prescribed by the President or Board of Directors.

         Section 4.05.  SECRETARY.  The Secretary  shall keep the minutes of
the meetings of the  shareholders  and of the Board of Directors,  in books
provided for the purpose;  shall see that all notices of such  meetings are
duly given in accordance with the provisions of the Bylaws of the Corporation,
or as required by law; may sign  certificates of shares of the Corporation with
the Chairman of the  Board;  shall  be  custodian  of the  corporate  seal;
shall  see that the corporate seal is affixed to all documents, the execution
of which, on behalf of the  Corporation,  under its seal, is duly  authorized,
and when so affixed may attest the same; and in general, shall perform all
duties incident to the office of a secretary of a corporation,  and such other
duties as from time to time may be assigned to the Secretary by the President
or the Board of Directors.

         Section  4.06.  TREASURER.  The  Treasurer  shall have charge of and
be responsible  for  all  funds,  securities,  receipts  and  disbursements  of
the Corporation,  and shall  deposit,  or cause to be deposited,  in the name
of the Corporation,  all  monies  or  other  valuable  effects  in  such
banks,  trust companies, or other depositories as shall, from time to time, be
selected by the Board of Directors; and in general, shall perform all the
duties incident to the office of a treasurer  of a  corporation,  and such
other duties as from time to time may be assigned to him or her by the
President or the Board of Directors.

         Section 4.07. OFFICERS HOLDING TWO OR MORE OFFICES. Any two (2) or
more of the above mentioned  offices,  except those of President and
Vice-President, may be held by the same person,  but no officer shall  execute,
acknowledge  or verify any instrument in more than one capacity,  if such
instrument be required by law, by the Articles of  Incorporation  or by these
By-Laws,  to be executed, acknowledged or verified by any two (2) or more
officers.


10



         Section  4.08.  COMPENSATION  OF  OFFICERS.  The  compensation  of
all officers  of the  Corporation  shall be fixed by or under the  authority
of the Board of  Directors,  and no officer  shall serve the  Corporation  in
any other capacity and receive compensation  therefor unless such additional
compensation shall be duly authorized.  The appointment of an officer does not
itself create contract rights.

         Section  4.09.  RESIGNATIONS.  An  officer  may  resign  at any time
by communicating his or her resignation to the Corporation, orally or in
writing. A resignation  is  effective  when  communicated  unless it specifies
in writing a later effective date. If a resignation is made effective at a
later date that is accepted by the Corporation, the Board of Directors may fill
the pending vacancy before the effective date if the Board provides that the
successor does not take office until the effective date.

         Section 4.10.  REMOVAL.  Any officer of the Corporation may be
removed, with or without cause, by the Board of Directors,  if such removal is
determined in the  judgment of the Board of  Directors  to be in the best
interests of the Corporation,  and any  officer  of the  Corporation  duly
appointed  by another officer may be removed, with or without cause, by such
officer.

         Section 4.11.  BONDS. The Board of Directors may by resolution
require any  officer,  agent,  or  employee  of the  Corporation  to  give
bond  to the Corporation,  with sufficient sureties,  conditioned on the
faithful performance of the duties of his respective office or position and to
comply with such other conditions as may from time to time be required by the
Board of Directors.

                                  ARTICLE V.
                                    SHARES

         Section 5.01.  CERTIFICATES.  Each  shareholder  shall be entitled to
a certificate  or  certificates  which shall  represent and certify the number
and kind of shares owned by such shareholder in the Corporation.  Such
certificates shall be  signed by the  Chairman  of the  Board or the
President,  or in their absence, any Vice-President,  and countersigned by the
Secretary or an Assistant Secretary,  and sealed with the seal of the
Corporation  or a facsimile of such seal.  Shares  certificates  shall be in
such form, not inconsistent with law or with  the  charter,  as shall  be
approved  by the  Board  of  Directors.  When certificates for stock of any
class are countersigned by a transfer agent, other than  the  Corporation  or
its  employee,  or by a  registrar,  other  than  the Corporation or its
employee,  any other signature on such  certificates may be a facsimile. In
case any officer of the Corporation who has signed any certificate ceases  to
be  an  officer  of  the  Corporation,  whether  because  of  death,
resignation or otherwise, before such certificate is issued, the certificate
may nevertheless  be issued and delivered by the  Corporation  as if the
officer had not ceased to be such officer as of the date of its issue.



11

         Section 5.02. TRANSFER OF SHARES.  Shares shall be transferable only
on the  books of the  Corporation  by the  holder  thereof,  in  person  or by
duly authorized  attorney,  upon the surrender of the  certificate
representing  the shares to be transferred,  properly endorsed.  The Board of
Directors shall have power and  authority  to make such other rules and
regulations  concerning  the issue,  transfer  and  resignation  of
certificates  of  stock  as it may  deem expedient.

         Section 5.03. TRANSFER AGENTS AND REGISTRARS.  The Corporation may
have one (1) or more  transfer  agents  and one(1) or more  registrars  of its
stock, whose respective  duties the Board of Directors may, from time to time,
define.  No certificate of stock shall be valid until  countersigned by a
transfer agent, if the Corporation has a transfer agent, or until registered by
a registrar,  if the Corporation has a registrar.  The duties of transfer agent
and registrar may be combined.

         Section 5.04.  RECORD DATES. The Board of Directors is hereby
empowered to fix,  in advance,  a date as the record  date for the purpose of
determining shareholders  entitled to notice of, or to vote at, any meeting of
shareholders, or shareholders  entitled to receive payment of any dividend or
the allotment of any rights,  or in order to make a determination  of
shareholders  for any other proper purpose.  Such date in any case shall be not
more than seventy (70) days, and,  in the case of a meeting  of  shareholders,
not less than ten (10)  days, prior to the date on which the particular
action,  requiring such determination of  shareholders,  is to be taken.  If a
record date is not set and the transfer books are not  closed,  the  record
date for the  purpose  of making any proper determination  with respect to
shareholders  shall be fixed in accordance  with applicable law.

         Section 5.05.  NEW  CERTIFICATES.  In case any  certificate of stock
is lost, stolen,  mutilated or destroyed,  the Board of Directors may authorize
the issue of a new certificate in place thereof upon such terms and conditions
as it may deem  advisable;  or the Board of Directors  may delegate  such power
to any officer or officers or agents of the Corporation;  but the Board of
Directors or such  officer or  officers,  in their  discretion,  may refuse to
issue such new certificate  save  upon  the  order of some  court  having
jurisdiction  in the premises.

                                   ARTICLE VI.
                                 INDEMNIFICATION
                  Any  person  (1) who at any time  serves  or has  served as
an officer, employee or a director of the Corporation, or (2) who, while
serving as an officer,  employee or a director of the Corporation,  serves or
has served at the  request  of the  Corporation  as a  director,  officer,
partner,  trustee, employee or agent of another corporation,  partnership,
joint venture, trust or other  enterprise,  or as a trustee,  other fiduciary
or administrator  under an employee  benefit plan,  shall have a right to be
indemnified by the Corporation to the  fullest  extent  permitted  by law
(provided  that any  employee of the Corporation  shall have a right to be
indemnified by the  Corporation  acting in his or her capacity as an employee
of the Corporation only upon  satisfaction of the  standards  of conduct for
officers  and  directors  set forth in the North Carolina Business  Corporation
Act) against (a) expenses,  including  attorneys' fees,  incurred  by him or
her in  connection  with any  threatened,  pending or completed civil,
criminal, administrative, investigative

12


                  or  arbitrative  action,  suit or  proceeding  (and any
appeal therein), whether or not brought by or on behalf of the Corporation,
seeking to hold him or her  liable by reason of the fact that such  person is
or was acting in such capacity,  and (b) payments made by such person in
satisfaction  of any liability,  judgment,  money decree, fine (including an
excise tax assessed with respect to an employee benefit plan),  penalty or
settlement for which he or she may have become liable in any such action,  suit
or  proceeding.  To the fullest extent from time to time  permitted  by law,
the  Corporation  agrees to pay the indemnitee's  expenses,  including
attorney's  fees and  expenses  incurred  in defending  any  such  action,
suit,  or  proceeding  in  advance  of the  final disposition  of such  action,
suit,  or  proceeding  and  without  requiring  a preliminary  determination
of  the  ultimate  entitlement  to  indemnification; provided that, the
indemnified  party first provides the Corporation  with (a) a written
affirmation of the indemnified party's good faith belief that such party meets
the standard of conduct  necessary for  indemnification  under the laws of the
State of North  Carolina  and (b) a written  undertaking  by or on behalf of
such  indemnified  party to repay the amount advanced if it shall  ultimately
be determined by a final judicial  decision from which there is no further
right to appeal that the  applicable  standard of conduct has not been met. The
foregoing rights of the indemnitee hereunder shall inure to the benefit of the
indemnitee, whether or not he or she is an officer, director, employee, or
agent at the time such liabilities or expenses are imposed or incurred.

                  The Board of Directors of the Corporation  shall take all
such action as may be necessary and  appropriate to authorize the  Corporation
to pay the indemnification required by this bylaw, including without
limitation, making a determination  that  indemnification is permissible in the
circumstances and a good faith  evaluation of the manner in which the claimant
for  indemnity  acted and of the  reasonable  amount or indemnity  due him. The
Board of Directors may appoint  a  committee  or  special  counsel  to  make
such   determination  and evaluation.  The  Board  may  give  notice  to,  and
obtain  approval  by,  the shareholders of the Corporation for any decision to
indemnify.

                  Any person who at any time  after the  adoption  of this
bylaw serves  or has  served  in  the  aforesaid  capacity  for  or on  behalf
of the Corporation  shall be deemed to be doing or to have done so in reliance
upon and as consideration for, the right of indemnification  provided herein.
Such right shall inure to the benefit of the legal  representatives  of any
such person and shall not be  exclusive of any other rights to which such
person may be entitled apart from the  provision  of this bylaw,  including a
right of  indemnification under any statute, agreement or insurance policy.

                                  ARTICLE VII.
                                SUNDRY PROVISIONS

         Section 7.01. SEAL. The corporate seal of the Corporation shall
consist of two concentric  circles  between which is the name of the
Corporation and in the center of which is inscribed SEAL; and such seal, as
impressed or affixed on the margin hereof, is hereby adopted as the corporate
seal of the Corporation.



13


         Section  7.02.  AMENDMENTS.  Except as  otherwise  provided in the
Articles of  Incorporation  or by law, these Bylaws,  including any bylaws
adopted by the  shareholders,  may be amended or repealed and new bylaws may be
adopted by the Board of Directors.


1


Martin Marietta Materials


================================================================================

P.O. Box 30013                                         News Release
Raleigh, North Carolina 27622
Telephone:  (919) 781-4550

FOR IMMEDIATE RELEASE                      Contact:    Janice K. Henry
                                                       Vice President, Chief
                                                       Financial Officer and
                                                       Treasurer
                                                       (919) 783-4658

                     LOCKHEED MARTIN CORPORATION COMPLETES
                    MARTIN MARIETTA MATERIALS EXCHANGE OFFER

BETHESDA, Maryland and RALEIGH, North Carolina (October 21, 1996) - Lockheed
Martin Corporation (NYSE:LMT) and Martin Marietta Materials, Inc. (NYSE:MLM)
jointly today announced the successful completion of an exchange offer through
which Lockheed Martin stockholders were given the oppontunity to exchange shares
of Lockheed Martin common stock for Martin Marietta Materials common stock. The
exchange offer was oversubscribed and expired at midnight EDT Friday, October
18, 1996.

        Based on a preliminary count by the exchange agent, approximately 42,
944,000 shares of Lockheed Martin common stock were tendered for exchange,
including approximately 126,000 shares presented by odd-lot stockholders and
15,571,000 shares subject to guarantees of delivery. In accordance with terms of
the exchange offer, Lockheed Martin accepts, subject to the proration provision
and satisfaction of remaining conditions, 7,913,136 Lockheed Martin shares in
exchange for the 37,350,000 shares of Martin Marietta Materials it owns.
Lockheed Martin accepts all shares tendered by odd-lot stockholders. All other
shares are subject to exchange on a pro-rata basis. The preliminary proration
factor is approximately 18 percent, assuming all shares subject to guarantees of
delivery are delivered in accordance with the terms of the exchange offer. The
final proration factor will be announced on or about October 25, 1996.

        Certificates for shares of Martin Marietta Materials common stock,
checks in lieu of fractional shares, and Lockheed Martin shares tendered but not
accepted for exchange will be mailed on or about October 31, 1996, as designated
by the tendering stockholder.

        Lockheed Martin commenced the exchange offer on September 16, 1996, and
offered to exchange 4.72 shares of Martin Marietta Materials common stock for
each share of Lockheed Martin common stock tendered in the exchange offer, up to
a maximum of 7,913,136 Lockheed Martin shares, resulting in approximately 81
percent of the Martin Marietta Materials common stock being distributed pursuant
to the exchange offer. Previously, in 1994, 19 percent of the Martin Marietta
Materials common stock was issued through an initial public offering.


                                     -MORE-


2

LMT Completes MLM Exchange Offer
Page 2
October 21, 1996


        Following the exchange, Lockheed Martin will own no shares of Martin
Marietta Materials common stock and will have reduced its own outstanding shares
by approximately 4 percent, with some 193 million shares of common stock
outstanding.

        Lockheed Martin is a diversified enterprise principally engaged in the
research, development, design, manufacture and integration of
advanced-technology products and services. Lockheed Martin conducts its business
through six major sectors: Aeronautics, C3I & Systems Integration, Electronics,
Energy & Environment, Information & Services, and Space & Strategic Missiles.
Lockheed Martin, headquartered in Bethesda, employs approximately 190,000 people
worldwide and has annualized sales of nearly $30 billion.

        Martin Marietta Materials, with sales of more than $660 million in 1995,
is the second-largest producer in the U.S. of aggregates used for the
construction of highways and other infrastructure projects, and for commercial
and residential construction. Through its Magnesia Specialties division, it also
is one of the nation's leading producers of refractory and lime products for the
steel industry and magnesia-based products for industrial, environmental and
agricultural applications. Headquartered in Raleigh, North Carolina, Martin
Marietta Materials has been a publicly traded company since its initial public
offering in February 1994.

        Lockheed Martin made the exchange offer to most efficiently separate
Martin Marietta Materials' aggregates and magnesia specialties operations from
Lockheed Martin's core aerospace and defense businesses in a manner tax free to
stockholders. Morgan Stanley & Co., Inc., acted as dealer manager for the
exchange offer.

                                     -END-





1
Martin Marietta Materials


==============================================================================

P.O. Box 30013                                           News Release
Raleigh, North Carolina 27622
Telephone:    (919) 781-4550

FOR IMMEDIATE RELEASE                    Contact:        Janice K. Henry
                                                         Vice President,
                                                         Chief Financial Officer
                                                         and Treasurer
                                                         (919) 783-4658



                            MARTIN MARIETTA MATERIALS
                            ANNOUNCES RECORD QUARTER

RALEIGH,  North Carolina  (October 21, 1996) - Martin Marietta  Materials,  Inc.
(NYSE:MLM)  today  reported  financial  results  for the third  quarter and nine
months ended  September 30, 1996.  Sales for the quarter  increased 5% to $201.5
million from 1995 third  quarter sales of $191.1  million.  Net earnings for the
quarter  increased  17% to $27.5  million,  or $0.60 per share,  from 1995 third
quarter net earnings of $23.4 million, or $0.51 per share.
         Sales for the first nine months of 1996  increased 8% to $538.5 million
from $497.0 million for the year-earlier period. For the nine-month period ended
September 30, 1996, net earnings  increased 14% to $58.6  million,  or $1.27 per
share, from net earnings for the first nine months of 1995 of $51.6 million,  or
$1.12 per share.
         The Aggregates  division's sales increased 6% to $169.5 million for the
third  quarter,  compared with the  year-earlier  period,  while the  division's
earnings from operations for the quarter were $40.5 million,  an increase of 18%
from the prior-year  period.  Unusually wet weather conditions in the Southeast,
primarily as a result of Hurricane Fran,  adversely  affected both shipments and
production and resulted in the temporary shutdown of certain locations. Sales of
$440.8 million and operating earnings of $83.7 million for the nine months ended
September 30, 1996, exceeded the prior-year period by 9%.
         Magnesia  Specialties'  third  quarter  sales  of  $32.0  million  were
slightly  above third  quarter  sales in 1995,  while the  division's  operating
earnings of $2.5 million were 3% below the prior-year  period as a result of the
impact of an explosion and fire in an electrical  substation,  which occurred at
the Woodville,  Ohio, lime plant during the second  quarter.  For the nine-month
period, sales were $97.7 million and earnings from operations were $7.8 million,
an increase of 4% and 33%, respectively, over the prior-year period.


2


         Commenting  on the results,  Stephen P.  Zelnak,  Jr.,  Vice  Chairman,
President and Chief  Executive  Officer,  said,  "We continue to experience  the
benefits from our  acquisitions  as well as from  continued  growth in the areas
where we do business. Weather has had a negative impact on shipments and cost of
operations  throughout the year.  However,  despite severe cold during the first
quarter and the effects of Hurricane Fran on our North Carolina quarries and the
subsequent  wet weather  conditions in the third  quarter,  shipments  reached a
record level for the quarter and are up 7.5% for the year to date.
         "At our Magnesia Specialties division, we continue to see growth in the
MagChem(R) product line as a result of our emphasis on increasing sales in areas
with higher margins.  Management expects the division to realize record sales in
this  product  area for 1996  and  continued  improvement  in  1997.  The  costs
associated  with the  explosion  at our lime  plant  affected  second  and third
quarter  earnings;  however,  repairs were  completed in the third quarter and a
claim has been filed under our business interruption insurance policy."
         Martin  Marietta  Materials,  Inc.,  is  the  nation's  second  largest
producer of  construction  aggregates and a leading  producer of  magnesia-based
chemical and refractory products used in a wide variety of industries.



3


MARTIN MARIETTA MATERIALS, INC. Unaudited Statement of Earnings (In millions, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, ------------------- ---------------- 1996 1995 1996 1995 ---- ---- ---- ---- Net sales $ 201.5 $ 191.1 $ 538.5 $ 497.0 Cost of sales 142.9 139.3 400.8 369.9 -------- ------- -------- -------- Gross profit 58.6 51.8 137.7 127.1 Selling, general and administrative expense 15.1 14.3 44.8 43.1 Research and development 0.5 0.5 1.4 1.4 -------- ------- -------- -------- Earnings from operations 43.0 37.0 91.5 82.6 Interest expense (2.3) (2.5) (8.0) (7.0) Other income and expenses, net 0.9 1.8 5.2 4.4 -------- ------- -------- -------- Earnings before taxes on income 41.6 36.3 88.7 80.0 Taxes on income 14.1 12.9 30.1 28.4 -------- ------- -------- -------- Net earnings $ 27.5 $ 23.4 $ 58.6 $ 51.6 ======== ======= ======== ======== Net earnings per common share $ 0.60 $ 0.51 $ 1.27 $ 1.12 ======= ======= ======== ======== Average number of shares outstanding 46.1 46.1 46.1 46.1
4
MARTIN MARIETTA MATERIALS, INC. Unaudited Financial Highlights (In millions) Three Months Ended Nine Months Ended September 30, September 30, ------------------- ---------------- 1996 1995 1996 1995 ---- ---- ---- ---- Net sales: Aggregates $ 169.5 $ 159.2 $ 440.8 $ 403.1 Magnesia Specialties 32.0 31.9 97.7 93.9 --------- -------- ---------- ---------- Total $ 201.5 $ 191.1 $ 538.5 $ 497.0 ========= ======== ========== ========== Gross profit: Aggregates $ 51.4 $ 44.0 $ 115.8 $ 105.6 Magnesia Specialties 7.2 7.8 21.9 21.5 --------- -------- ---------- ---------- Total $ 58.6 $ 51.8 $ 137.7 $ 127.1 ========= ======== ========== ========== Earnings from operations: Aggregates $ 40.5 $ 34.4 $ 83.7 $ 76.8 Magnesia Specialties 2.5 2.6 7.8 5.8 --------- -------- ---------- ---------- Total $ 43.0 $ 37.0 $ 91.5 $ 82.6 ========= ======== ========== ==========
5
MARTIN MARIETTA MATERIALS, INC. Balance Sheet Data (In millions) September 30, December 31, 1996 1995 ------------- -------- (Unaudited) ASSETS Cash $ 2.4 $ - Accounts receivable, net 133.6 94.8 Affiliates receivable 6.1 89.7 Inventories 113.1 113.4 Other current assets 14.0 16.5 Property, plant & equipment, net 396.5 392.2 Other noncurrent assets 22.9 21.6 Intangible assets 62.0 61.2 ---------- ---------- Total assets $ 750.6 $ 789.4 ========== ========== LIABILITIES & SHAREHOLDERS' EQUITY Current liabilities $ 86.2 $ 173.3 Long-term debt (excluding current maturities) 124.8 125.0 Pension, postretirement & postemployment benefits 52.1 47.5 Other noncurrent liabilities 21.0 20.1 Shareholders' equity 466.5 423.5 ---------- ---------- Total liabilities and shareholders' equity $ 750.6 $ 789.4 ========== ==========