AUSA WINTER 2002 SYMPOSIUM, FORT LAUDERDALE, Fla., Feb. 27, 2002 (PRIMEZONE) -- A team consisting of Northrop Grumman Corporation (NYSE:NOC) and BAE SYSTEMS has won a follow-on contract to continue supplying the U.S. Army with the AN/VIC-3 Vehicular Intercommunication System (VIS).

The five-year, fixed-price, indefinite delivery/indefinite quantity contract has a potential value of $50 million. It was awarded by the Army's Communications-Electronics Command, Ft. Monmouth, N.J.

"Both Northrop Grumman and our team partner, BAE SYSTEMS, recognize that user requirements in military communications are continually evolving," said David Watson, program manager for Vehicular Intercommunication Systems at Northrop Grumman. "This award acknowledges our ongoing effort to enhance the VIC-3's performance, especially in the areas of cordless communication and digital data transmission."

Nick Heyes, BAE SYSTEMS business manager for the AN/VIC-3 program, added, "VIC-3 forms the basis for a family of related communication products now entering service. Ultimately they will provide digital connectivity not only within the vehicle but between groups of vehicles, while maintaining the use of existing VIC-3 assets and associated cabling."

Northrop Grumman's Electronic Systems sector, headquartered in Baltimore, Md., and BAE SYSTEMS C4ISR, Land Platform Communications Group, based in Blackburn, U.K., have jointly supplied more than 20,000 VIS systems since the equipment was first procured by the Army in 1993. This includes exports to 14 other countries.

The VIC-3 digital intercom system provides clear, noise-free communication between crew members inside combat vehicles and externally over as many as six combat net radios. It provides digital data distribution, voice-activated switching, a redundant architecture to mitigate battle damage, and a built-in test capability.

Northrop Grumman Electronic Systems 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.

BAE SYSTEMS is a global systems company that employs 120,000 people and has annual sales of $18 billion. The company offers a global capability in air, sea, land and space with a world-class prime contracting ability supported by a range of key skills. BAE SYSTEMS designs and manufactures military aircraft, surface ships, submarines, space systems, radar, avionics, communications, electronics, guided weapon systems, and a range of other defense products.

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  CONTACT: Doug Cantwell
         Northrop Grumman Electronic Systems
         (410) 765-9332