BUCHAREST, Romania -- March 12, 2004 -- Northrop Grumman Corporation (NYSE:NOC) has finalized a memorandum of understanding with the Ministry of National Defense of Romania to pursue a variety of defense-related activities.

The memorandum was signed last week by Dr. Donald C. Winter, president of Northrop Grumman's Mission Systems sector, and Ioan Mircea Pascu, Romania's Minister of National Defense. It allows Northrop Grumman to establish a collaborative relationship for exploring joint opportunities related to Romania's national defense.

"As Romania prepares for NATO (North Atlantic Treaty Organization) membership, a historic achievement ratified by Parliament, and moves ever closer to European Union membership, it is clear that they will face additional challenges," Winter said. "I know my country deeply appreciates the vital contribution and friendship demonstrated so continuously and courageously by the government and people of Romania. This will, no doubt, lead to significant expressions of further bilateral cooperation. In recognizing the vision and leadership of the ministerial teams, and with the signing of this memorandum of understanding, we look forward to meeting those challenges together, in partnership."

Pascu said, "The signing of this memorandum represents a confirmation of the special relationship that our country developed with the United States during these years. At the same time, it also represents a continuation of this relationship. The collaboration between the two countries within the wider context of redefining the U.S. system of military bases outside the continental U.S. can open new perspectives for the cooperation between the two countries. This, we hope, will increase the degree of interoperability and a faster adaptation of the Romanian Military System to the Euro-Atlantic standards."

The Deputy Minister of Defense, George Cristian Maior, underlined the benefits that such a project would have for "accelerating the transformation of the Romanian Army into an expeditionary force that is capable of undertaking any mission of the Alliance. It also ensures better use of the national infrastructure facilities for that purpose."

Northrop Grumman has several programs in Eastern Europe and regards the Romanian memorandum of understanding as furthering the foundation for its commitment to the region. The U.S. Air Force recently selected Northrop Grumman Mission Systems to build a national military command and control system in Bulgaria.

Winter also said the growing economic and historical military importance of the region underpins the establishment of a regional corporate presence, to be headquartered in Bucharest, with offices also planned in Bulgaria.

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 more than 120,000 employees, and operations in all 50 states and 25 countries, Northrop Grumman serves U.S. and international military, government and commercial customers.

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  CONTACT:  Janis Lamar
          Northrop Grumman Corporation 
          (703) 345-7046
          Janis.Lamar@ngc.com