FARNBOROUGH INTERNATIONAL AIR SHOW, July 18, 2006 (PRIMEZONE) -- Northrop Grumman (NYSE:NOC) and SELEX Sensors and Airborne Systems (S&AS), a Finmeccanica company, have signed a Strategic Alliance Agreement to further strengthen their collaboration in the manufacture and sale of Northrop Grumman Directional Infrared Countermeasure (DIRCM) systems, including the AN/AAQ-24(V) NEMESIS and the GUARDIAN(tm) system. The deal has been celebrated at the 45th Farnborough International Air Show this week.

The Northrop Grumman NEMESIS DIRCM is a combat-proven, laser-based countermeasure system that protects crews of fixed and rotary-wing aircraft from the threat of heat-seeking missiles. The system works automatically by detecting a missile launch, plotting its spatial location and activating one or more transmitters which track its approach and direct a modulated beam of laser energy to defeat it.

NEMESIS is the only system of its type currently in production and has been installed on several hundred aircraft, including over 27 different fixed and rotary wing platforms, for the U.S. and U.K. military and several allied countries.

Northrop Grumman is prime contractor for the NEMESIS DIRCM system and has been working with SELEX S&AS for over 10 years, taking delivery of more than 600 SELEX S&AS DIRCM transmitter assemblies from the company's Edinburgh, Scotland site.

The Strategic Alliance Agreement signed today will see SELEX S&AS continue to manufacture and support the SELEX S&AS transmitters and as well as set up a production process to co-produce the new Northrop Grumman designed Mini Pointer-Tracker, the transmitter assembly forming part of Northrop Grumman's next generation DIRCM systems, including the GUARDIAN(tm). The agreement also contemplates further collaboration on future Northrop Grumman DIRCM products and variants.

"This agreement formalizes our future alliance with SELEX S&AS and is essential to the continuing success of Northrop Grumman's DIRCM family of products," said Dr. Robert L. Del Boca, vice president and general manager, Northrop Grumman Defensive Systems Division.

Further commenting on the agreement, Norman Bone, director general manager of SELEX S&AS in Edinburgh said, "We are delighted to have signed this landmark agreement with our friends at Northrop Grumman. SELEX S&AS has significantly invested in state-of-the-art manufacturing facilities in Edinburgh. We already have a proven track record in the production and support of DIRCM transmitters and now look forward to delivering the manufacture and support of the new Mini Pointer-Tracker. We very much look forward to working with Northrop Grumman as a key member of its DIRCM team for the foreseeable future."

NOTE TO EDITORS: Photo Opportunity -- A photo opportunity will be available at 11am, Tuesday 18th July at the Finmeccanica Stand (Pavilion OE2), as Northrop Grumman's Dr. Robert Del Boca and Norman Bone SELEX S&AS Director General Manager Edinburgh sign the exclusive agreement.

SELEX Sensors and Airborne Systems, a Finmeccanica company, is one of Europe's leading defence electronics companies and provides world class capabilities in surveillance, protection, tracking, targeting, navigation & control, and imaging systems. It is owned 75% by Finmeccanica and 25% by BAE Systems, and brings together SELEX Sensors and Airborne Systems UK and Italy's Galileo Avionica. Some 7,200 people are employed across operations in the United Kingdom, Italy, and the United States. Further details can be obtained from our website http://www.selex-sas.com

Northrop Grumman Defensive Systems Division is a component of Northrop Grumman's Baltimore-based Electronic Systems sector, a world leader in the design, development, and manufacture of defense and commercial electronic systems, including airborne radar, navigation systems, electronic countermeasures, precision weapons, airspace management systems, communications systems, space sensors, marine and naval systems, government systems and logistic services.

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.

  CONTACT:  Katie Lamb
          Northrop Grumman Electronic Systems
          (847) 528-1225

          Jane McGirk
          SELEX Sensors and Airborne Systems UK
          +44 0 131 343 8993