LOS ANGELES, April 16, 2002 -- Northrop Grumman Corporation (NYSE:NOC) today was honored for its Alternative Dispute Resolution (ADR) program when it received one of four awards given for the first time to recognize efforts by federal government agencies and private sector businesses that use this process to reach settlements.

The 2002 awards, based on the recommendations of a distinguished panel of federal and private sector professionals, were presented in four categories: large government agency; small government agency; new ADR program; and private sector. Northrop Grumman received the Private Sector ADR Program Award.

The award was presented to Northrop Grumman during a ceremony in the Eisenhower Executive Office Building by the Office of Federal Procurement Policy, part of the Office of Management and Budget.

"In addition to resolving several disputes using ADR processes, Northrop Grumman emphasizes the identification and timely settlement of issues during program and contract administration so that they are addressed and resolved before they mature to disputes," said Jim Sanford, vice president of Contracts and Pricing for Northrop Grumman, who was among several company executives jointly receiving the award. "By emphasizing open communication, Northrop Grumman prevents issues from adversely affecting delivery schedules and unnecessarily occupying management's and the customer's time, money and resources."

The company, for example, used ADR to successfully settle major claims with the U.S. Air Force that are the second- and fourth-largest ADR settlements in USAF experience with the process. Northrop Grumman additionally has successfully used ADR to resolve issues with its suppliers and disputes that surface following mergers and acquisitions.

"Our efforts to promote ADR throughout the contract management process have resulted in improved program performance and timely delivery of products and systems," said Scott Seymour, Northrop Grumman corporate vice president and president of the Integrated Systems sector, who also accepted the award on behalf of the company. "ADR provides a tangible benefit in both customer satisfaction and cash flow," he added.

"The remarkable turnaround of the Joint STARS production program attests to the benefits of teamwork and timely issue resolution. This was driven by a new paradigm which was built, in part, on the program-level ADR agreement now in place for many years. Seven consecutive Joint STARS production aircraft have now been delivered ahead of schedule and below cost targets," Seymour added.

Incorporating "lessons learned" from the ADR process, Northrop Grumman has modified its contract management training program to educate key contracts and pricing professionals in the benefits of ADR and the importance of timely dispute resolution. The company also has been a leading supporter of both the USAF and the Defense Acquisition University in ADR training by involving company executives and developing case studies and training materials.

Northrop Grumman Corporation is an $18 billion, global 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 nuclear and non-nuclear shipbuilding and systems. With nearly 100,000 employees and operations in 44 states and 25 countries, Northrop Grumman serves U.S. and international military, government and commercial customers.

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