ST. PETERSBURG, Fla., Oct. 30, 2008 -- Northrop Grumman Corporation (NYSE:NOC) has announced the signing of a U.S. Navy Mentor-Protege agreement with Custom Manufacturing and Engineering (CME), Inc. of St. Petersburg, Fla., a manufacturer of military power supplies and distribution equipment.

Under the terms of the mentor-protege program with the Navy, Northrop Grumman's Baltimore-based Electronic Systems sector will mentor CME for three years to help CME create a solid and competitive business infrastructure by mobilizing resources, improving performance, lowering costs, and establishing a stronger, better supplier source for the U.S. military.

"We fully appreciate the value that CME brings to Northrop Grumman, the warfighter, the 10th Congressional District and the state of Florida. This is truly a win-win for all parties involved," said Douglas Lawton, vice president of supply chain management for Northrop Grumman's Electronic Systems sector. "We are very excited about this new partnership, which will strengthen and increase flexibility within the supply chain and better position CME as a reliable supplier of advanced power management and control solutions."

"Northrop Grumman has worked closely with the U.S. Navy and Marine Corps to implement this agreement, and we are grateful for this opportunity," said Dr. Nancy Crews, CEO, founder and owner of CME. "For CME, this initiative will enhance our capability to better compete in the defense marketplace, and also increase our name recognition among government agencies, defense and aerospace prime contractors as a provider of military power supplies, management and distribution equipment."

The Defense Department's Mentor-Protege program was created to help small disadvantaged businesses compete for and win Pentagon and other federal contracts by establishing long-term relationships with large defense contractors. Since 1992, Northrop Grumman has assisted approximately 100 small businesses under the program and currently has 24 active Mentor-Protege agreements.

Founded in 1997, CME develops, manufactures, and integrates products that address remote sensing applications, improved electrical power management and control devices, and the technical integration of special vehicle mission or support equipment under contracts to a variety of customers, including the U.S. Army, Air Force, Navy, Marine Corps, Special Operations Command, and other federal agencies as well as private sector customers.

Northrop Grumman Corporation is a global defense and technology company whose 120,000 employees provide innovative systems, products, and solutions in information and services, electronics, aerospace and shipbuilding to government and commercial customers worldwide.

  CONTACT:  Alleace Gibbs
          Northrop Grumman Electronic Systems
          (410) 765-1294

          Michael Crews
          (727) 637-4101