MELBOURNE, Fla., Sept. 20, 2004 (PRIMEZONE) -- The U.S. Air Force awarded two contract modifications totaling $232 million to Northrop Grumman Corporation (NYSE: NOC) last week for the E-10A Multi-Sensor Command and Control Aircraft program.

The modifications include a $170 million, one-year extension to the company's E-10A pre-system design and development (pre-SDD) contract and $62 million to fund the E-10A Battle Management Command and Control (BMC2) subsystem.

The E-10A contract extension was required to accommodate an increase in the pre-SDD timeline. The pre-SDD weapon system integration program is now valued at approximately $408 million.

The E-10A program is managed by Northrop Grumman's Integrated Systems sector in Melbourne, Fla. The company was also recently awarded the BMC2 subsystem contract.

The BMC2 subsystem is the operational backbone of the E-10A program. It will provide information processing capability for the E-10A's radar as well as the seamless real-time communications, command-and-control functions key to the aircraft's mission. The BMC2 subsystem can also access and correlate sensor data from other sources to provide commanders with a comprehensive picture of the battlespace. The subsystem's cutting edge technology will fulfill the Air Force's vision for cruise-missile defense, persistent situation awareness and executable decision-quality information.

"This is a major milestone for the E-10A program," said Jerry Madigan, Northrop Grumman vice president and program manager for the E-10A. "As the prime contractor, we've now added the final subsystem to our weapon system integration contract and can move forward. We've covered a lot of ground up with our teammates, Boeing and Raytheon, in preparing to integrate the Northrop Grumman Multi-Platform Radar Technology Insertion (MP-RTIP) sensor on the Boeing 767-400ER test bed platform. The BMC2 selection was the final piece of the puzzle. We're now ready to proceed to full system design and development."

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.

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  Contact:  Jim Stratford
          (321) 726-7526
          jim.stratford@ngc.com