PASCAGOULA, Miss., Dec 23, 2003 -- The U.S. Navy has awarded Northrop Grumman Corporation's (NYSE: NOC) Ship Systems sector a contract to build an Arleigh Burke (DDG 51) class Aegis-guided missile destroyer. The contract to build the destroyer, DDG 107, is valued at more than $419 million dollars.

The destroyer is the third of a four-ship multiyear procurement contract awarded to Ship Systems in September 2002. The multiyear procurement contract includes an opportunity for a fifth ship, for a total potential contract value of more than $2 billion.

"Northrop Grumman Ship Systems has delivered these powerful Aegis guided missile destroyers to the U.S. Navy for more than two decades," said Dr. Philip A. Dur, president, Northrop Grumman Ship Systems. "We have always offered unmatched quality to the Navy and unmatched value to the American people. We are very pleased that our customer recognizes our pre-eminence in the shipbuilding industry, and has chosen to award another vital Navy asset into our care."

DDG 107 is the 57th ship of the DDG 51 program, and the 26th to be built by Northrop Grumman Ship Systems Ingalls Operations, located in Pascagoula, Miss., since 1992.

Northrop Grumman's Ship Systems sector includes primary operations in Pascagoula and Gulfport, Miss., New Orleans and Tallulah, LA; as well as a network of fleet support offices in the U.S. and Japan. The sector, which currently employs more than 19,000 shipbuilding professionals, is one of the nation's leading full-service systems companies for the design, engineering, construction, and life-cycle support of major surface ships for the U.S. Navy, U.S. Coast Guard and international navies, and for commercial vessels of all types.

  Contacts:  Bill Glenn 
           Northrop Grumman Ship Systems 
           (228) 935-3971
           (228) 327-1671, Cell