NOTE FOR EDITORS: Officials from all three companies will be available at a media briefing scheduled for 11:30 a.m. EDT today in the Diplomat Room at the Ritz-Carlton Pentagon City, 1250 South Hayes St., Arlington, Va. Media interested in attending should contact Gus Gulmert in Northrop Grumman's Washington, D.C., office at 703-875-8450 or via e-mail at gus_gulmert@ngc.com.

MELBOURNE, Fla., May 12, 2003 (PRIMEZONE) -- Northrop Grumman Corporation (NYSE:NOC), The Boeing Company (NYSE:BA) and Raytheon Company (NYSE:RTN) officials agreed today to work together in developing the U.S. Air Force's E-10A Multi-sensor Command and Control Aircraft (MC2A). This innovative teaming agreement covers the Weapon Systems Integration (WSI) efforts for the E-10A, which provides an enhanced airborne ground surveillance and cruise missile defense capability to the warfighter.

"We will give the Air Force a best value program by drawing on the legacy expertise each company brings to this exciting new mission," said Chris Hernandez, Northrop Grumman's vice president for Air Force Surveillance Programs. "We've worked hard to build an agreement that will provide commanders with the most responsive and technologically advanced ground surveillance and battle management capability in the world at an affordable price."

Increment 1 of the Air Force's evolutionary acquisition program for the E-10A provides for an advanced airborne ground surveillance and cruise missile defense capability. It uses the Northrop Grumman/Raytheon Multi-Platform Radar Technology Insertion Program (MP-RTIP) radar sensor coupled with a Battle Management Command and Control (BMC2) system that is being competed later this year. The teaming agreement announced today covers the overall WSI contract, which is expected to be a sole source award made later this month.

Under the agreement, Northrop Grumman is anticipated to be the prime contractor and will be responsible for overall program management and system engineering, mission system design, system integration and flight test, and airframe modification.

Primary responsibilities for Boeing include major structural modification design and kits, air vehicle analysis and performance assessments and airworthiness testing. It is also anticipated that Boeing will be producing the 767-400ER airframe for the E-10A test bed under a separate contract with the government.

In addition, the Teaming Agreement anticipates that Boeing will take the lead for any Increment 2 analysis and subsequent activities, should the government decide to proceed with an additional increment. Increment 2 is not currently funded, but if implemented, is expected to support Airborne Early Warning and Control (AEW&C) with increased BMC2 functionality.

Raytheon's primary responsibilities include radar and radome installation, the self-protection system, and support to system engineering, system integration and test for the cruise missile defense functionality.

Northrop Grumman Integrated Systems, based in El Segundo, Calif., is a premier aerospace and defense systems integration enterprise with the capabilities to design, develop, produce and support fully missionized integrated systems and subsystems. Integrated Systems delivers best-value solutions, products, and services in support of chosen segments within the broad market arena of battlespace awareness, command and control systems and integrated combat systems.

A unit of The Boeing Company, Boeing Integrated Defense Systems is one of the world's largest space and defense businesses. Headquartered in St. Louis, Boeing Integrated Defense Systems is a $25 billion business. It provides systems solutions to its global military, government and commercial customers and is the world's largest military aircraft manufacturer.

Raytheon Company, with 2002 sales of $16.8 billion, is an industry leader in defense, government and commercial electronics, space, information technology, technical services, and business and special mission aircraft. With headquarters in Lexington, Mass., Raytheon employs more than 76,000 people worldwide.

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  CONTACT: Jim Stratford 
         Northrop Grumman Integrated Systems
         (321) 726-7526
         james_stratford@ngc.com
   
         Dave Sloan
         Boeing
         (253) 657-3046
         david.a.sloan@boeing.com

         Pennington Way 
         Raytheon
         (310) 647-9067
         pway@raytheon.com