PARIS AIR SHOW, Le BOURGET, France, June 18, 2001 (PRIMEZONE) -- European Aeronautic Defence and Space Company (EADS) and Northrop Grumman Corporation (NYSE:NOC) are hosting a shared pavilion at the Paris Air Show 2001 featuring the achievements of their numerous collaboration projects as well as their vision of expanded trans-Atlantic cooperation.

The pavilion provides a comprehensive picture of the scope of the collaboration and how trans-Atlantic cooperation will help Europe and the United States acquire the necessary defense systems to establish information dominance in crisis prevention and conflict management.

"EADS and Northrop Grumman have joined in this effort to showcase the progress we've made since the signing of our Memorandum of Understanding last year and to demonstrate our 'building block' approach which focuses on providing affordable and effective solutions to individual requirements," said Ralph D. Crosby Jr., president, Northrop Grumman Integrated Systems Sector (ISS).

"Expanded and mutually beneficial trans-Atlantic defense industrial collaboration is considered by both EADS and Northrop Grumman as a key factor for future success. We have examined our individual technical competencies, resources and requirements with a view toward yielding the synergies that will ultimately enhance trans-Atlantic force interoperability, and the rationalization of European and North American defense resources," Mr. Crosby said.

"Northrop Grumman and EADS are collaborating on a trans-Atlantic industrial vision for meeting European, North American and other strategic allies' defense needs with electronic systems and system-of-systems architectures," said Tom Enders, head of EADS Defence and Civil Systems (DCS) Division. "In the field of information warfare, our companies have an optimal mix of core competencies. Therefore, we are confident we can benefit from this collaboration and at the same time offer cost-effective solutions for equal information access of all NATO partners. By cooperating we are offering best value for the money," Mr. Enders explained.

"Both of our companies believe that new industrial and operational structures are necessary to meet the evolving security requirements of the Atlantic Region and the importance of matching new technology to those requirements. Our two companies will take a leadership role in bringing this vision to life," Mr. Enders said.

During the Paris Air Show, the two companies also announced the following:

NATO Alliance Ground Surveillance System Solution

A substantial part of the two companies' common activities is the collaboration on a system solution for NATO's Alliance Ground Surveillance (AGS) system requirement.

In this effort, Northrop Grumman's ISS and EADS will establish a joint project team to evaluate a program implementation approach to meet the NATO AGS system requirement.

"This is another important development in the EADS-Northrop Grumman relationship," said Mr. Enders. "We will leverage our respective synergies to address the AGS requirement in a way that benefits our NATO customer and the individual Alliance partners."

"We are pleased to join with EADS in this pursuit, which is the next logical step in the development of our relationship," said Mr. Crosby. "This collaboration is a significant milestone in developing a truly trans-Atlantic solution to the urgent requirement for a NATO-owned and -operated core AGS capability.

"We believe this AGS system will significantly enhance NATO's ability to respond to the challenges of the 21st century - from peacekeeping and peace building to crisis management and battle management," Mr. Crosby said.

Electronic Warfare

Another project of extraordinary value in trans-Atlantic cooperation is the combination of EADS' and Northrop Grumman's technological skills in the sensitive field of electronic warfare.

Northrop Grumman's Electronic Sensors and Systems Sector (ES3) and EADS' Systems & Defence Electronics, a business unit of DCS, have announced a Memorandum of Understanding (MOU) that focuses on the promotion and marketing of existing, improved and new electronic warfare product lines.

This MOU encompasses the portfolio of EADS and Northrop Grumman airborne electronic warfare equipment, test equipment and product support. Product lines include radar warning and jamming systems, missile warning systems, infrared countermeasure systems, integrated electronic warfare suites and airborne electronic attack systems.

A joint project team will evaluate business opportunities arising from the need of armed forces to increase electronic self-protection by searching for new and derivative products in the field of electronic warfare systems based on existing products and technologies in both companies' portfolios.

"This collaboration in electronic warfare offers huge potential to our companies because superior information and electronic self-protection are increasingly important to guarantee target-effectiveness and the security of our armed forces," said Stefan Zoller, president of EADS Systems & Defence Electronics business unit.

"This agreement allows us to offer our customers improved products and services as a result of the synergy created by combining our companies' core competencies," said Bill Brackney, vice president and general manager of Northrop Grumman's Defensive Systems Division in Rolling Meadows, Ill. "We are looking forward to a long and fruitful collaboration."

The primary focus of this business arrangement is to address the needs of European customers. The agreement establishes a framework for cooperation between the companies and allows both to engage in other agreements.

Additionally, there are other projects under consideration, such as a collaboration on a navigation radar for transport aircraft or the development of a new standard of air traffic control secondary radars. These projects, as displayed at the Le Bourget Pavilion, form the unique building block approach of EADS and Northrop Grumman. Concrete business opportunities in single projects are building the basis of cooperation and mutual trust, which is essential to trans-Atlantic collaboration. The validity of this approach can be seen from the fact that all these projects have been initiated in only one year since the beginning of the companies' cooperation.

In April 2000, EADS and Northrop Grumman signed a first overall MOU to evaluate potential alliances in a number of business areas, and then in June 2000 announced an initiative on the AN/APN-241 weather radar for the European A400 military transport aircraft.

The two companies followed that in July 2000 by announcing cooperation on a high-altitude, long endurance unmanned aerial vehicle system. Then, in October 2000,

EADS-SOGERMA and Northrop Grumman established a joint venture based in Lake Charles, La., to maintain, repair and overhaul large commercial aircraft.

EADS and Northrop Grumman intend to pursue continued cooperation as opportunities arise.

About Northrop Grumman

Northrop Grumman Corporation is a $15 billion, global aerospace and defense company with its worldwide headquarters in Los Angeles. Northrop Grumman provides technologically advanced, innovative products, services and solutions in defense and commercial electronics, systems integration, information technology and non-nuclear shipbuilding and systems. With 80,000 employees and operations in 44 states and 25 countries, Northrop Grumman serves U.S. and international military, government and commercial customers.

About EADS

EADS has arisen from the merger of Aerospatiale Matra, Construcciones Aeronauticas S. A. and DaimlerChrysler Aerospace AG. With pro forma revenues of more than Euro 22.5 billion (1999), EADS is the third largest aerospace company in the world. The company has approximately 100,000 employees working at more than 90 sites in France, Germany, and Spain. EADS has valuable capabilities and experiences in the field of enhanced ISR sensor systems, avionics and subsystems design and command, control, communications, computers and intelligence

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  CONTACT:  Northrop Grumman Corp., United States
          Georgia Calaway 
          (469) 420-8056

          Paris Air Show Contact:  
          Pat Mullaney 
          011 33 1 41 57 52 83

          EADS Contact:
          Frederic Aragon  
          06 07 06 57 99