DALLAS, July 5, 2001 (PRIMEZONE) -- Northrop Grumman Corporation (NYSE:NOC) and the European Aeronautic Defence and Space Company (EADS) today announced the signing of a teaming agreement to propose the Pratt & Whitney JT8D-219 engine to re-engine NATO's fleet of airborne warning and control systems (AWACS) and trainer cargo aircraft (TCA).

Under terms of the agreement, EADS would be the prime contractor and would perform aircraft modifications. Northrop Grumman's Integrated Systems Sector (ISS) would provide engineering support and conduct the military qualification of the re-engined AWACS aircraft through its Airborne Ground Surveillance and Battle Management Systems (AGS&BMS) business area.

"We are extremely pleased to continue expanding our business relationship with EADS. Additionally, we believe that with the formidable team established by EADS, we will provide the most cost-effective and efficient solution to the requirements set forth by NATO," said Alan Doshier, vice president-AGS&BMS.

EADS has a separate teaming agreement with Pratt & Whitney and Seven Q Seven to propose the JT8D-219 engines and installation kits for NATO AWACS and TCA aircraft.

Northrop Grumman Corporation is a $15 billion, global aerospace and defense company with its worldwide headquarters in Los Angeles. Northrop Grumman provides technologically advanced, innovative products, services and solutions in defense and commercial electronics, systems integration, information technology and non-nuclear shipbuilding and systems. With 80,000 employees and operations in 44 states and 25 countries, Northrop Grumman serves U.S. and international military, government and commercial customers.

EADS has arisen from the merger of Aerospatiale Matra, Construcciones Aeronauticas S. A. and DaimlerChrysler Aerospace AG. With pro forma revenues of more than Euro 22.5 billion (1999), EADS is the third largest aerospace company in the world. The company has approximately 87,000 employees working at more than 90 sites in France, Germany, and Spain. EADS is a full-service provider in the fields of development, manufacture, maintenance, repair & overhaul, and modernization of high-performance combat aircraft, mission aircraft, military transport aircraft and training systems.

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  CONTACT: Northrop Grumman Corporation  
         Georgia Calaway 
         (469) 420-8056