EXHIBIT 99.1
                        [LETTERHEAD OF LOCKHEED MARTIN]

                              December 23, 1998

VIA FACSIMILE
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CalComp Technology, Inc.
CalComp Inc.
c/o CalComp Technology, Inc.
2411 W. LaPalma Avenue
Anaheim, California 92801
Attention: Chief Financial Officer

           Re: Borrowings under (1) the Amended and Restated Revolving Credit
           Agreement ("Credit Agreement") dated as of December 20, 1996, as
           amended, among CalComp Technology, Inc. and CalComp Inc. as Borrowers
           and Lockheed Martin Corporation as Lender and (2) the Cash Management
           Agreement dated as of July 23, 1996, as amended, between CalComp
           Technology, Inc. and Lockheed Martin Corporation (together with the
           Credit Agreement, the "Existing Agreements").

Dear Mr. Millerick:

           We understand that on or about January 10, 1999 you will be fully
drawn under the Existing Agreements. Although we have increased the credit
capacity under the Existing Agreements several times in the past to enable you
to continue operations, additional credit capacity beyond the currently
available $43,000,000 will not be forthcoming for continued funding of such
operations.

           Although we have no obligation to provide additional funding or grant
waivers of the terms of the Existing Agreements, in the event you cannot find
other sources of funding, we are willing to consider negotiating an agreement
with you containing the following terms: (i) we would lend you additional funds
to assist you in a non-bankruptcy winding up of your business in an orderly
fashion (including payment of current obligations) in accordance with a plan
approved by your directors and satisfactory to us (the "Plan"); (ii) these
additional funds would be extended for six months, which should be sufficient
time for winding-up the business; (iii) you would agree to use the amount
loaned under the new agreement solely for expenses necessary for the payment of
current obligations and the orderly winding up of your business in accordance
with the Plan; and (iv) payment of amounts due and payable under the Existing
Agreements would be deferred and instead would be resolved as part of the wind-
up of the business.

           Please note that nothing herein shall be construed as a waiver of
Lockheed Martin Corporation's ("Lockheed Martin") rights and remedies under the
Existing Agreements. In addition, this letter is a non-binding proposal on the
part of Lockheed Martin. Lockheed



CalComp Technology, Inc.
December 23, 1998
Page 2

Martin makes no commitment to provide additional funding or to defer payment of
amounts due and payable under the Existing Agreements absent execution of a
definitive agreement satisfactory to Lockheed Martin.

          It is imperative that we receive your response by December 28, 1998,
as the termination date of the Existing Agreements is fast approaching. In the
interim, we will continue to work with you on other alternatives, including the
sale of the business or parts thereof.



                                         Sincerely,

                                         /s/ PHILIP J. DUKE

                                         Philip J. Duke
                                         Vice President, Finance