SAN DIEGO, Feb. 27, 2002 (PRIMEZONE) -- Northrop Grumman Corporation's (NYSE:NOC) Integrated Systems sector has been awarded a $29.7 million contract by the U.S. Navy for 109 additional BQM-74E aerial targets and associated kits.

This option is the second of a four-year, firm fixed-price contract awarded in April 2001. The four-year contract has a potential total value of $110 million.

Work on this contract will begin in March 2002, with the first vehicle delivery scheduled for February 2003. Final assembly and checkout will be performed at Northrop Grumman facilities in Palmdale, Calif. Contract management, engineering and product support will be performed in San Diego. The first-year production contract is scheduled to be completed in January 2004.

The BQM-74E is a subsonic aerial target that emulates antiship cruise missiles or enemy fighters. The Navy uses the BQM-74E to provide realistic threat simulation to test and evaluate new weapon systems and for fleet training. Northrop Grumman has delivered more than 7,500 vehicles in the "74" series, including the MQM/BQM-74 and the Chukar, the international version.

The BQM-74 program is managed by the Navy's Program Executive Office, Strike Weapons and Unmanned Aviation and Naval Air Systems Command, Patuxent River, Md.

Northrop Grumman Integrated Systems, headquartered in Dallas, Texas, is a premier aerospace systems integration enterprise. Integrated Systems has the capabilities to design, develop, integrate, produce and support complete systems, as well as airframe subsystems, for airborne surveillance and battle management, early warning, airborne electronic warfare and air combat aircraft. It is also integrating these capabilities for emerging network-centric warfare concepts.

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  CONTACT: Cynthia Curiel
         Northrop Grumman Integrated Systems
         (858) 618-4355