HERNDON, Va. -- June 30, 2004 -- The Department of Homeland Security has awarded Northrop Grumman Corporation (NYSE: NOC) a blanket purchase agreement (BPA) to implement and maintain a new human resources management system, known as MAXHR, which will help build a high performing workforce, and improve recruitment and retention efforts.

The BPA, awarded to Northrop Grumman's Information Technology (IT) sector, includes an initial task order estimated at $2 million, with a maximum potential value of $175 million over three years.

"We have significant expertise in human capital management in the federal government, and an excellent history of on schedule/on budget enterprise resource planning programs," said Wood Parker, president of Northrop Grumman IT's Federal Enterprise Solutions business unit. "Our strong proficiency in these areas gives us a broad understanding of the human resources issues facing the Department of Homeland Security."

Under the terms of the contract, Northrop Grumman IT will provide overall integration and program management for the new system; in-depth functional expertise for pay, performance, classification, labor relations, adverse actions and appeals; communications, training and organizational change management; and implementation of an enterprise-wide information technology system in line with President Bush's E-Government initiative.

"We will provide a seamless system for managing the valuable human resources functions which is an important step in completing the integration of the 22 agencies that make up the Department," said David Zolet, vice president of Homeland Security for Northrop Grumman Corporation. "This new system will speed internal operations, allowing the Department to continue focusing on critical tasks to fulfill their mission."

Northrop Grumman team members include Watson Wyatt Worldwide, Washington, D.C.; Gene Rouleau & Associates, Silver Spring, Md.; BearingPoint, McLean, Va.; Catapult Technology Ltd., Bethesda, Md.; Spectrum Solutions Group, Vienna, Va.; and STG International Inc., Alexandria, Va.

Northrop Grumman is the only tier one provider whose technology solutions for Homeland Security apply undersea, across land, air, space, and into cyberspace, as well as a customer community that includes intelligence, defense, federal civil, state and local, commercial, and international clients.

Northrop Grumman Information Technology, headquartered in Herndon, Va., is a trusted IT leader and premier provider of advanced IT solutions, engineering and business services for government and commercial clients. The company's technological leadership spans such areas as homeland security solutions, secure wireless, cyber and physical assurance, IT and network infrastructure, managed services, knowledge management, modeling and simulation, and geospatial intelligence solutions.

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  Contacts:  Juli Ballesteros, APR
           (703) 713-4675
           juli.ballesteros@ngc.com