WOODLAND HILLS, Calif., Dec. 11, 2002 (PRIMEZONE) -- Northrop Grumman Corporation's (NYSE:NOC) Navigation Systems Division has been selected by The Boeing Company to provide refreshed technology and upgraded software for the warning and caution and the mission computer subsystems on Boeing's C-17A aircraft.

Under the development phase of this program, Northrop Grumman will create new software, test equipment and qualification units that will be flight-tested by Boeing in the second quarter of 2004. The production phase of the contract will result in the creation of 43 shipsets of line replaceable equipment with deliveries beginning in the first quarter of 2005. The potential value of the development and production phases of the contract is $45 million.

"These upgraded systems will result in reduced support costs and improved performance for the C-17A, while providing an economical path for future system upgrades," said Bill Allison, vice president and general manager of Northrop Grumman's Navigation Systems Division. "This program affirms Northrop Grumman's ongoing commitment to meeting Boeing's situational awareness needs."

The new units are form, fit and function replacements for the older technology systems. They will introduce modern hardware and jointly developed software certifiable to Federal Aviation Administration DO-178B, which will meet international aircraft operational flight requirements.

Northrop Grumman provides the current warning and caution subsystem and various line replaceable units for the mission computer subsystem consisting of computers, displays, keyboards and control panels for the C-17A that will be replaced by the new systems. This equipment monitors, processes and displays warning conditions that occur in various critical systems in the aircraft, and it allows mission-planning data to be entered and displayed.

The U.S. Air Force-Boeing C-17 Globemaster III is designed to fulfill airlift needs well into the 21st century, carrying large combat equipment and troops or humanitarian aid across international distances directly to small austere airfields anywhere in the world.

Based in Woodland Hills, Northrop Grumman's Navigation Systems Division provides situational awareness for the defense, civil, and commercial markets. It offers integrated avionics, inertial navigation and guidance systems, satellite electronics, Identification Friend or Foe (IFF) systems, smart displays, fiber-optic sensors and systems, and logistic support products and services.

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  CONTACT:  Jack Martin
          Northrop Grumman Electronic Systems
          (410) 765-4441