WASHINGTON, D.C. and AMSTERDAM, July 22, 2004 (PRIMEZONE) -- Northrop Grumman Corporation (NYSE:NOC) and EADS (Frankfurt, Paris and Madrid stock exchange quote "EAD") today announced they have signed a memorandum of understanding to begin collaborating on ballistic-missile defense solutions.

Specifically, the memorandum establishes an industrial framework to enable and structure formal discussions between the two companies in order to identify and pursue business opportunities in the emerging global ballistic-missile defense market

"The memorandum is an important first step towards building a relationship that will serve as the foundation for business arrangements on future endeavors in the global missile-defense market," said Donald C. Winter, corporate lead executive for missile defense and sector president, Northrop Grumman Mission Systems. "We expect our relationship to go beyond a single project, to include multiple projects in the area of sensors, weapons, command and control, battle management and infrastructure support."

"This industry relationship will underpin the government-to-government relationships that are essential, as global, layered, missile defense becomes a reality," added Winter. "Together, our portfolio of capabilities will give our governments what they need to successfully develop and operate this layered system."

"EADS is proud to partner with Northrop Grumman in the area of ballistic-missile defence," said Jean-Louis Gergorin, member of the Executive Committee of EADS, Executive Vice President Strategic Coordination. "The globalisation of the ballistic threat has changed the security environment whereby industrial collaborations in this field will result in systems designs that address this growing concern. EADS brings its proven expertise to the table."

An executive steering committee will commence immediately, comprised of individuals from both companies who will lay out the path for collaboration on ballistic-missile defense.

The signing of the memorandum of understanding between EADS and Northrop Grumman builds upon a series of existing collaborations in defense and homeland security-related activities between the two companies. The Eurohawk program is a private-sector initiative of EADS and Northrop Grumman for the German Air Force, which will provide unmanned high-altitude capability. The two companies teamed to lead the Transatlantic Industrial Proposed Solution (TIPS) offer, which will provide NATO with a long needed Alliance Ground Surveillance system (AGS) - truly transforming NATO's response force operation capabilities.

From detection, to tracking, to engagement, Northrop Grumman is bringing its entire suite of expertise to bear on developing a global, layered, missile defense capability. In boost phase, Northrop Grumman leads an industry team on the Kinetic Energy Interceptors program and is developing the chemical laser portion of the airborne laser; for the Ground-based Midcourse Defense (GMD) program, Northrop Grumman is playing a major role providing the GMD fire control/communications system, better know as the "brains" of the midcourse system; in the area of sensors, the company is prime contractor for the space tracking and surveillance system (STSS) and is currently the prime on DSP, the retiring sensor system; in modeling and simulation, Northrop Grumman leads the effort at the Joint National Integration Center, the nation's premier missile-defense modeling and simulation center and international wargaming center

EADS has proven across-the-board capabilities in missile defense and strong differentiating factors making the company Europe's leader in ballistic-missile defense technology. EADS has expertise in key areas of missile defense including: ballistic threat and ballistic warfare, system integration and engineering, command control battle management and communications, interceptors, radar and infrared sensors as well as satellite systems.

Northrop Grumman Corporation is a global defense company headquartered in Los Angeles, Calif. Northrop Grumman provides technologically advanced, innovative products, services and solutions in systems integration, defense electronics, information technology, advanced aircraft, shipbuilding and space technology. With 125,000 employees, and operations in all 50 states and 25 countries, Northrop Grumman serves U.S. and international military, government and commercial customers.

EADS is a global leader in aerospace, defence and related services. In 2003 EADS, generated revenues of Euro 30.1 billion and employed a workforce of about 109,000. The EADS Group includes the aircraft manufacturer Airbus, the world's largest helicopter supplier Eurocopter and the joint venture MBDA, the second largest missile producer in the global market. EADS is the major partner in the Eurofighter consortium, is the prime contractor for the Ariane launcher, develops the A400M military transport aircraft and is the largest industrial partner for the European satellite navigation system Galileo.

For additional information, visit our website: http://www.eads.net

  CONTACT: 
Northrop Grumman Media Relations:
Jay McCaffrey (703) 345.8910
Jay.mccaffrey@ngc.com 

Marynoele Benson (703) 741.7723
Marynoele.benson@ngc.com

EADS Contacts:
Rainer Ohler +49 89 607 34235
Patrice Kreis +33 1 42 24 2063

EADS North America Contact:
Diane Murphy +1 202 776 0988