PARIS AIR SHOW, Le BOURGET, France, June 17, 2001 (PRIMEZONE) -- Northrop Grumman Corporation's (NYSE:NOC) Electronic Sensors and Systems Sector (ES3) and TERMA A/S today announced a Memorandum of Agreement (MOA) between TERMA and Northrop Grumman Overseas Service Corporation, a wholly owned subsidiary of Northrop Grumman. The MOA will focus on interrelated electronic warfare (EW) business initiatives.

This MOA encompasses the portfolio of TERMA and Northrop Grumman airborne electronic warfare products. These include the TERMA ALQ-213 Electronic Warfare Management System; F-16 Pylon Internal Dispenser System; Electronic Combat Internal Pylon System and F-16 pylons and Modular Countermeasures Pod. Also included are the Northrop Grumman ALQ-131, ALQ-162, AAR-54, Falcon Edge and Falcon Shield EW systems; helicopter RF EW and integrated EW systems; AAQ-24(V) NEMESIS; MIMS missile warning system, and WANDA Laser Infrared Countermeasures system. There are provisions to extend the agreement to new products as well.

"TERMA's EW product lines are closely aligned with those of Northrop Grumman. This agreement formalizes our long-standing cooperation and cements our relationship for the future," said Bill Brackney, vice president and general manager of Northrop Grumman's Defensive Systems Division in Rolling Meadows, Ill. "We are looking forward to a long and successful alliance."

The MOA was established as a means of formalizing business arrangements for ongoing programs and business pursuits. The relevant business initiatives involve an array of U.S., European, Middle Eastern and Asian customers. The agreement establishes a framework for cooperation between the companies and allows both to engage in other agreements.

"At TERMA we are very pleased indeed to have made this agreement with Northrop Grumman Corporation," said TERMA Vice President and Division Manager Bo Witthoft. "We see it as a natural continuation and a reinforcement of several years of successful cooperation on a variety of electronic warfare projects. We are sure that this agreement will help us to serve even better the customers worldwide for electronic warfare systems supplied by Northrop Grumman and TERMA."

TERMA A/S is a Danish electronics concern headquartered in Lystrup, Denmark. The company has a 50-year history designing and producing defense electronics for the Danish military, including chaff/flare dispenses, radar sensor systems, shipboard electronic support measures equipment and air traffic control information systems.

Headquartered in Baltimore, Md., ES3 is a world leader in the design, development and manufacture of defense electronics systems including airborne radar systems, navigation systems, electronic warfare systems, precision weapons, airspace management systems, air defense systems, communications systems, space systems, marine systems, oceanic and naval systems, logistics systems, and automation and information systems.

  CONTACT: Northrop Grumman Paris Air Show
         Katie Lamb
         011 33 1 41 57 52 83
 
         Northrop Grumman, United States
         Ellen Hamilton
         (847) 259-9600 ext. 4693
 
         TERMA
         Ole Fogh
         011 45-87-43-6000