OMAHA, Neb., Sept. 29, 2004 (PRIMEZONE) -- Northrop Grumman Corporation (NYSE:NOC), the largest defense contractor in Nebraska, broke ground today on a new, state-of-the art facility that will consolidate current local operations from four sites to a single headquarters near Offutt Air Force Base. The company has more than 750 employees in the Omaha area.

Nebraska Governor Mike Johanns, Omaha Mayor Mike Fahey, and Bellevue Mayor Jerry Ryan joined Bob Hinson, Northrop Grumman vice president and corporate lead executive for U.S. Strategic Command, in a patriotic ceremony to initiate the future site and focus on the company's growing role as a key provider of high-tech systems for our nation's defense.

"Today's event marks Northrop Grumman's commitment to the greater Omaha area, where we plan to expand our presence and construct a high-tech center to better serve our Department of Defense and intelligence community customers and our employees," said Hinson. "The new facility will allow broader flexibility for engineers to share domain expertise between programs, offer employees a winning workplace, and provide customers the opportunity to work out new concepts in our exceptional lab environment. The extensive pool of talent in the Omaha region and the strategic nature of our work are integrated here to make this a hub for technical innovation for our customers."

The new 110,000 sq. ft., three-story complex will be located at the intersection of Highway 370 and 30th Street and will be built by OPUS Corporation of Minnetonka, Minn. The facility will initially house approximately 400 people, allowing for expansion to accommodate new business opportunities. The building is expected to be complete by fall of 2005.

"The success of this company is yet another example of how an investment in the people of this great state can lead to increasing opportunities for growth," said Johanns. "I applaud the decision to expand operations here in Nebraska and I am very grateful for the support companies like Northrop Grumman provide to our military personnel."

Wired with a robust communications network and the latest software tools, the new complex boasts an expansive research and development lab, a demonstration center, an advanced conference and training center, a warehouse to store high-tech equipment outfitted for key Defense Dept. customers, spacious work areas, and a fitness center. The demonstration labs and large conference center will support Northrop Grumman's research and development work and offer the government a facility where it can host meetings and test technical concepts.

Northrop Grumman's current operations are located in leased facilities, including three buildings on Fort Crook Road and a fourth located on Wall Street in Bellevue. In addition, the company has hundreds of employees who work in facilities located on Offutt Air Force Base.

Northrop Grumman will continue growing its support in the Omaha community through programs like The University of Nebraska's Peter Kiewit Institute where the company donated $10,000 this year to establish technology partnerships with Bellevue East and Bellevue West High Schools to promote careers in technology and engineering.

Community support also comes through the company's Employee Charitable Organization (ECHO). Employees also are involved in a myriad of community events and philanthropic activities. Added Hinson, "Northrop Grumman employees share their talent and resources through many venues including science fairs and technology centers, which help cultivate our youth and grow our area as a high tech center."

The American Red Cross, Omaha Children's Museum, Strategic Air and Space Museum, American Lung Association, and Juvenile Diabetes Association are among a few of the key organizations with which Northrop Grumman works to support Omaha area organizations.

Northrop Grumman's presence in the Omaha area spans 35 years where it has provided support to the U.S. Strategic Command, Air Force Weather Agency, and other government entities. This original onsite Offutt Air Force Base enterprise began with a software development and sustainment program in support of land-based intercontinental ballistic missile and submarine-launched ballistic missile war planning. Northrop Grumman's project base has expanded to include systems development throughout the Defense Dept. and intelligence community.

Northrop Grumman Corporation is a global defense company headquartered in Los Angeles, Calif. Northrop Grumman 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, Northrop Grumman serves U.S. and international military, government and commercial customers.

  CONTACT:  Marynoele Benson
          Northrop Grumman Mission Systems
          (703) 741-7723