LOS ANGELES, Aug. 7, 2003 -- Northrop Grumman Corporation (NYSE:NOC) today announced a realignment of businesses within two of its operating sectors that possess similar customers, expertise and capabilities. The realignment, which will be effective Jan. 1, 2004, will also more fully leverage existing capabilities and enhance development and delivery of highly integrated information systems and services.

Northrop Grumman Mission Systems' Global Information Technology, Civil Systems and Mission Systems Europe businesses will move to Northrop Grumman Information Technology (IT). For financial reporting purposes, the three units currently comprise Mission Systems' Federal & Civil Information Systems business and are expected to generate approximately $840 million in estimated 2003 revenues. Northrop Grumman IT's Defense Mission Systems (DMS) will move to Northrop Grumman Mission Systems. For financial reporting purposes, DMS is currently contained within IT's Government Information Technology business, and is expected to generate approximately $850 million in 2003 estimated revenues.

"This business realignment allows us to concentrate greater critical mass of similar capabilities to better serve our defense, homeland security and civil government customers," said Ronald D. Sugar, chief executive officer and president. "Northrop Grumman is one of the largest providers of IT services to the U.S. federal government and this strategic decision will further enhance our effectiveness across the company's broad IT portfolio."

As a result of this move, Northrop Grumman IT will be better positioned to focus its business on large-scale, information systems modernization, public safety, and infrastructure support activities for defense, intelligence, homeland security and other federal, state and local government customers.

The concurrent move of DMS to Mission Systems will realign the sector to specialize in the integration of complex, mission-critical, network-centric systems for defense and intelligence customers.

Approximately 5,600 employees from Northrop Grumman IT will move to Northrop Grumman Mission Systems and 2,600 employees from Mission Systems will move to the IT sector.

  The business units to be realigned are:

 -- Global Information Technology Division -- The business unit has
    expertise in large-scale information architecture, network
    integration, and enterprise information systems for the federal

 -- Civil Systems Division -- The business unit specializes in systems
    engineering and information technology solutions for federal,
    state and local governments.

 -- Mission Systems' Europe Division -- This organization focuses on
    national public safety systems within Europe.

 -- Defense Mission Systems Division -- This business unit provides
    interoperable Command, Control, Communications, Computers and
    Intelligence (C4I) solutions and warfare systems support to the
    warfighting and intelligence communities.

Northrop Grumman Corporation is a $25 billion 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 approximately 120,000 employees and operations in all 50 states and 25 countries, Northrop Grumman serves U.S. and international military, government and commercial customers.

Members of the news media may receive our releases via e-mail by registering at: http://www.northropgrumman.com/cgi-bin/regist_form.cgi

LEARN MORE ABOUT US: Northrop Grumman news releases, product information, photos and video clips are available on the Internet at: http://www.northropgrumman.com

  CONTACT:  Frank Moore
          (310) 201-3335
          Gaston Kent
          (310) 201-3423