EL SEGUNDO, Calif., Nov. 9, 2004 (PRIMEZONE) -- Northrop Grumman Corporation (NYSE:NOC) and The Boeing Company (NYSE:BA) have signed a memorandum of agreement that outlines the structure of a team that will compete for NASA's Crew Exploration Vehicle (CEV) and other elements of Project Constellation, a planned architecture of human and robotic space systems that will allow astronauts to travel to and explore the moon, Mars and beyond. The two companies expect to finalize the teaming agreement in the near future.

CEV, the first of several space systems envisioned within Project Constellation, will serve as the architecture's central human space transportation system. A competition to begin development of the CEV is expected to begin in 2005.

Reporters are invited to participate in a teleconference Nov. 9 beginning at 1 p.m. EST (12 p.m. CST, 10 a.m. PST) to learn more about the agreement between Northrop Grumman and Boeing. Please call 425-717-7000 or (toll free) 866-350-0777; Passcode: 73140# at approximately 12:55 p.m. Spokesmen from both companies will be available for comment, questions and answers.

"A Northrop Grumman - Boeing team will bring together two proven leaders in the development, production and successful deployment of reliable, advanced technology space systems," said Gary Ervin, sector vice president for Northrop Grumman's Integrated Systems sector. "Northrop Grumman's systems integration skills, technology innovation and track-record of superior space systems performance, coupled with Boeing's extensive experience in human space flight offers NASA a team that can develop and deliver an innovative, highly affordable CEV to serve the nation's space exploration needs safely and reliably well into the future."

Under the agreement, Northrop Grumman will serve as the team's leader and prime contractor during the initial development phase of the CEV, known as Spiral 1. During this period, which will demonstrate the CEV's ability to operate safely with astronauts in low Earth orbit, Boeing would serve as Northrop Grumman's principal teammate and major subcontractor.

In subsequent Spirals of Project Constellation, NASA's focus will expand from operating the CEV in low Earth orbit to transporting astronauts to the Moon and beyond. In Spiral 2, the Prime Contractor leadership role will shift to Boeing for new human lunar CEV transportation system elements, with Northrop Grumman serving as Boeing's principal teammate and major subcontractor. Northrop Grumman and Boeing will also determine the prime/subcontractor relationship for subsequent elements of Spiral 2 and 3 as NASA further defines Project Constellation.

"This alliance recognizes that the nation's Vision for Space Exploration and the CEV system development will require as much innovation in program and business management solutions as it requires in technology maturation and engineering," said Chuck Allen, Boeing vice president, Space Exploration Systems. "Collectively, Boeing and Northrop Grumman would offer NASA more than 90 years of combined experience in development and operation of complex, integrated manned and unmanned aeronautic and space flight systems and platforms, including in every major US human space flight program ranging since inception through ISS."

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 $27 billion business. It provides network-centric system solutions to its global military, government, and commercial customers. It is a leading provider of intelligence, surveillance and reconnaissance systems; the world's largest military aircraft manufacturer; the world's largest satellite manufacturer and a leading provider of space-based communications; the primary systems integrator for U.S. missile defense and Department of Homeland Security; NASA's largest contractor; and a global leader in launch services.

Northrop Grumman Corporation is a global defense company headquartered in Los Angeles, Calif. It 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, the company serves U.S. and international military, government and commercial customers. Today, more than 20,000 of Northrop Grumman's employees are devoted to space-related projects.

  CONTACT:  Brooks McKinney, APR
          Northrop Grumman Integrated Systems
          (310) 331-6610 office
          (310) 864-3785 cellular
          brooks.mckinney@ngc.com

          Edmund G. Memi
          The Boeing Company
          (281) 226-4029 office
          (713) 204-5464 cellular
          edmund.g.memi@boeing.com