NEWPORT NEWS, Va., Oct. 30, 2008 -- Northrop Grumman Corporation (NYSE:NOC) announced today that its Shipbuilding sector's United Steelworkers members voted to accept a new 52-month labor contract. The current contract expired at midnight October 26. The new contract takes effect from October 27, 2008 through March 10, 2013.

"We are pleased that the union members voted yes for the contract and we look forward to moving ahead, together, to build ships for the world's greatest Navy," said Bill Ermatinger, vice president, human resources and administration for Northrop Grumman Shipbuilding. "We believe the contract is a very fair and competitive one with a strong economic package and significant benefit enhancements. Most importantly, we believe it is a contract worthy of our great shipbuilders at Newport News," he added.

Highlights of the contract include:

  *  Contract Length: The new contract spans 52 months and will be
     effective from October 27, 2008 through March 10, 2013. It is
     split into four 13-month periods.

  *  Wages: A 16.4 percent increase over the life of the contract
     for more than half of the workforce.  This averages to a 3.75
     percent increase per year for each employee. On day one,
     employees in pay grade 13 through 17 will receive four percent
     increases. All others will receive 3.75 percent increases.
     The next two 13-month increments will have 3.75 percent
     increases. There will be a four percent increase for the
     final 13 months of the contract.

  *  Shift Differential: Increased from 75 cents to $1.25,
     effective immediately (for employees working on second and
     third shifts).

  *  Pension: Increased from $1,100 per month to $1,250 starting
     February 1, 2009.  It will then increase to $1,350 per month
     beginning January 1, 2011. Additionally, a $20 per year
     supplement will be given to employees for each year of
     credited service after 30 years.  For example, an employee
     with 35 years of credited service on February 1, who
     qualifies for the $1,250 per month pension, will receive
     $1,350 per month.  The current pension multiplier will
     increase from $40 per year of service to $45 over the life
     of the contract for future years of service.

  *  Medical Benefits: Maintained current premium cost sharing
     for current and future years with only a 3.2 percent premium
     increase, beginning in July. Premium increases are between
     72 cents per week for single coverage to $2.26 per week
     for family coverage.

  *  Paid Sick or Personal Leave: Employees who miss six hours
     or less during a calendar quarter will earn six hours of
     sick or personal time. Employees can earn a maximum of
     three days per year and bank a maximum of six days.

  *  Employee Recognition Program: Supervisors will now have the
     ability to nominate their employees for monetary awards to
     recognize outstanding performance, process improvements,
     quality improvements and cost saving ideas.
 

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:  Jennifer Dellapenta
          Northrop Grumman Shipbuilding
          (757) 380-3558
          jennifer.dellapenta@ngc.com