Earnings per Share from Continuing Operations of $1.02

        Income from Continuing Operations of $357 Million

         Contract Acquisitions a Record $12.3 Billion

    2006 Guidance for Earnings per Share of $4.25 to $4.40 Reaffirmed

    2006 Guidance for Cash from Operations of $2.3 to $2.6 Billion
                           Reaffirmed
 

LOS ANGELES, April 25, 2006 (PRIMEZONE) -- Northrop Grumman Corporation (NYSE:NOC) reported first quarter 2006 income from continuing operations of $357 million, or $1.02 per diluted share, compared with $398 million, or $1.08 per diluted share, for the same period of 2005. First quarter 2005 income from continuing operations included an after-tax gain of $45 million, or $0.12 per diluted share, from the sale of TRW Automotive common stock. First quarter 2006 sales decreased to $7.2 billion from $7.5 billion in the first quarter of 2005, due to lower sales in the company's Ships business.

"As expected, our first quarter includes strong operating performances from Information & Services, Aerospace and Electronics. At Ships, we continue to progress toward pre-Katrina production levels," said Ronald D. Sugar, Northrop Grumman chairman, chief executive officer and president. "Contract bookings during the quarter were a record $12.3 billion. Based on this strong start, we continue to expect double-digit growth in earnings per share and substantial cash generation in 2006."

The company's first quarter 2006 segment operating margin increased to $644 million from $638 million in first quarter of 2005. First quarter 2006 segment operating margin reflects higher operating margin in Information & Services, Electronics and Aerospace, partially offset by lower operating margin in Ships.

Unallocated expenses for the 2006 first quarter increased to $35 million from $27 million in the same period of 2005. Operating margin was unchanged at $595 million.

Other income/expense for the 2006 first quarter decreased to an expense of $1 million from income of $82 million in the prior year period. First quarter 2005 included a pre-tax gain of $70 million from the sale of approximately 7.3 million shares of TRW Automotive common stock.

The effective tax rate applied to income from continuing operations for the 2006 first quarter was 30.9 percent compared with 33.2 percent in the 2005 first quarter.

Net income for the 2006 first quarter declined to $358 million, or $1.02 per diluted share, from $409 million, or $1.11 per diluted share, for the same period of 2005. First quarter 2005 net income included the $45 million after-tax gain from the TRW Automotive common stock sale and an $11 million after-tax gain from the sale of Teldix GmbH. Earnings per share are based on weighted average diluted shares outstanding of 350.8 million for the first quarter of 2006 and 367 million for the first quarter of 2005.

Contract acquisitions increased to $12.3 billion in the first quarter of 2006 from $7.8 billion for the same period of 2005. The increase includes the impact of contract acquisitions delayed from the 2005 fourth quarter by the delay in the passage of the 2006 defense budget, as well as several significant new business awards. Total backlog, which includes funded backlog and firm orders for which funding is not currently contractually obligated by the customer, was $58 billion at Mar. 31, 2006 compared with $56.3 billion at Dec. 31, 2005.

Cash Measurements, Debt and Share Repurchases

Net cash used by operating activities in the first quarter of 2006 totaled $115 million compared with net cash provided by operating activities of $263 million in the first quarter of 2005. Capital spending totaled $173 million in the 2006 first quarter, including $54 million for Hurricane Katrina damage repair at Ships, compared with total capital spending of $197 million in the 2005 first quarter. During the 2006 first quarter, insurance recoveries related to hurricane damage, repair and restoration totaled $54 million.

Cash and cash equivalents declined to $373 million at Mar. 31, 2006 from $1.6 billion at Dec. 31, 2005. During the first quarter of 2006 the company reduced total debt by approximately $430 million and repurchased $787 million (including approximately 11.6 million shares under an Accelerated Share Repurchase agreement) of its common stock. Since the inception of its share repurchase programs in August of 2003, the company has retired approximately 53 million shares of its common stock for approximately $3 billion. Weighted average diluted shares outstanding declined to 350.8 million for the first quarter of 2006 compared with 367 million for the first quarter of 2005, and common shares outstanding totaled 343.3 million at Mar. 31, 2006. Under the most recent $1.5 billion share repurchase authorization announced in Oct. 2005, approximately $213 million remains. The company intends to complete the repurchase of shares under the current authorization by the end of 2006.

2006 Guidance

For 2006, the company continues to expect sales of approximately $31 billion, earnings per share from continuing operations of $4.25 to $4.40 and cash from operations of $2.3 billion to $2.6 billion.

Business Results

As was previously announced, beginning with the first quarter of 2006 the company has implemented enhancements in the reporting of its financial results. Effective Jan. 1, 2006, the company established a new reportable segment, Technical Services, to leverage existing business strengths and synergies in logistics support, sustainment and technical services. Technical Services consolidates multiple programs in logistics operations from the Electronics, Integrated Systems, Mission Systems and Information Technology segments.

In addition the company has categorized its seven reporting segments into four businesses. The results of the Mission Systems, Information Technology and Technical Services segments are aggregated as Information & Services. The results of the Integrated Systems and Space Technology segments are aggregated as Aerospace, and the Electronic Systems segment is now reported as Electronics. The Newport News and Ship Systems sectors continue to be reported as Ships.

The company has also revised its reporting of intercompany margin recognition and elimination for the company's operating segments. In order to provide a more relevant depiction of the management and performance of its businesses, operating margin for each of the company's segments will include margin on intersegment sales. Schedule 4 provides a reconciliation of the new reporting format with past financial reports. Schedule 2 provides a summary of the financial results for the four businesses and the seven reporting segments that comprise them. The operating information shown below excludes intersegment eliminations shown in Schedule 2.

  Information & Services
 ------------------------------------------------------------------
                                First Quarter ($ Millions)
                     -----------------------------------------------
                               2006                  2005
                            Operating   % of       Operating  % of
                      Sales   Margin   Sales  Sales  Margin  Sales
                     -----------------------------------------------
 Mission Systems     $1,264    $117     9.3%  $1,254   $93     7.4%
 Information
  Technology          1,057      75     7.1%   1,034    76     7.4%
 Technical Services     275      13     4.7%     274    12     4.4%
                     -----------------------------------------------
                     $2,596    $205     7.9%  $2,562  $181     7.1%
                     -----------------------------------------------
 

Information & Services sales increased $34 million, or 1 percent, during the first quarter of 2006 due to higher sales in Mission Systems and Information Technology. The increase in sales at Mission Systems includes higher volume on Command, Control & Intelligence Systems programs, which was partially offset by lower volume on the Intercontinental Ballistic Missile program. Higher sales in Information Technology include higher volume on Defense, Civilian Agencies, and Intelligence programs. These increases were partially offset by lower Commercial, State & Local sales, primarily due to a $53 million sales decline in the reseller business. In the first quarter of 2006, the company announced the exit of the reseller business, which it expects to complete by the end of 2006.

Information & Services first quarter 2006 operating margin increased 13 percent, primarily due to improved performance in Missile Systems and Command, Control & Intelligence Systems programs in the Mission Systems segment.

  Aerospace
 ------------------------------------------------------------------
                                First Quarter ($ Millions)
                     -----------------------------------------------
                                2006                  2005
                             Operating   % of       Operating  % of
                       Sales   Margin   Sales  Sales  Margin  Sales
                      -----------------------------------------------
 Integrated Systems  $1,437    $149    10.4%  $1,287  $142    11.0%
 Space Technology       855      71     8.3%     863    67     7.8%
                     ------------------------------------------------
                     $2,292    $220     9.6%  $2,150  $209     9.7%
                     ------------------------------------------------
 

First quarter 2006 Aerospace sales increased 7 percent from the first quarter of 2005 reflecting a 12 percent increase in Integrated Systems sales and slightly lower sales in Space Technology. Higher volume on the F/A-18, F-35, E-2C Advanced Hawkeye, and E-2 Post Multi-Year Procurement programs contributed to the increase in Integrated Systems revenue. Space Technology sales decreased 1 percent due to lower sales in Missile & Space Defense, Civil Space and Software Defined Radios programs, which were partially offset by higher sales in Satellite Communications programs.

Aerospace first quarter 2006 operating margin increased 5 percent from the first quarter of 2005 due to higher volume at Integrated Systems and improved performance at Space Technology.

  Electronics
 ------------------------------------------------------------------
                                First Quarter ($ Millions)
                     -----------------------------------------------
                                2006                  2005
                             Operating   % of       Operating  % of
                       Sales   Margin   Sales  Sales  Margin  Sales
                      -----------------------------------------------
                      $1,509    $177    11.7%  $1,547  $162   10.5%
                      -----------------------------------------------
 

Electronics first quarter 2006 sales decreased 2 percent from the first quarter of 2005 primarily due to lower sales in Aerospace Systems and Navigation Systems. In Aerospace Systems, F-16 Block 60 program sales declined as deliveries progressed, and Navigation Systems sales were impacted by the divestiture of Teldix in 2005. These declines were partially offset by higher sales in Government Systems programs.

Electronics first quarter 2006 operating margin increased 9 percent from the first quarter of 2005 due to improved performance in Defensive Systems and Aerospace Systems programs.

  Ships
 -------------------------------------------------------------------
                                First Quarter ($ Millions)
                     -----------------------------------------------
                               2006                  2005
                            Operating   % of       Operating  % of
                      Sales   Margin   Sales  Sales  Margin  Sales
                     -----------------------------------------------
                      $1,133     $68     6.0%  $1,514  $107    7.1%
                     -----------------------------------------------
 

Ships first quarter 2006 sales decreased 25 percent from the first quarter of 2005 due to lower volume on the DD(X) program, as well as lower volume due to hurricane-related work delays on the LPD, LHD, DDG, and Coast Guard Deepwater programs. Results for Aircraft Carrier and Submarine programs were comparable to prior year results.

Ships operating margin decreased 36 percent from the first quarter of 2005, and reflects lower DD(X) volume and lower volume and reduced margin rates for the LPD, LHD, DDG, and Coast Guard Deepwater programs as a result of hurricane-related cost growth and work delays.

First Quarter 2006 Highlights

  --  The National Nuclear Security Administration awarded a Northrop
     Grumman-led joint venture a five-year, $2.5 billion contract for
     the management and operation of its Nevada Test Site.

 --  The San Diego County Board of Supervisors awarded Northrop
     Grumman a seven-year contract, valued at approximately
     $600 million, to manage the county's information technology and
     telecommunications services.

 --  The U.S. Navy awarded Northrop Grumman a contract for work to
     support the Los Angeles, Ohio, Seawolf and Virginia-class
     submarines.  The total estimated value of the contract is
     approximately $248 million through 2008.

 --  The U.S. Air Force awarded Northrop Grumman a $225 million,
     27-month contract to continue the full-rate production phase of
     the Intercontinental Ballistic Missile Propulsion Replacement
     Program (PRP), the fifth of seven full-rate production options
     under the nine-year PRP contract.  The PRP contract began in
     1999, and is valued at $1.9 billion over the ten-year period.

 --  The U.S. Navy exercised a $93.8 million contract modification
     option to Northrop Grumman for detail design and the procurement
     of long-lead-time material on the LHA 6 amphibious assault ship
     program.  This is the first option exercised on the initial
     contract, awarded in July 2005. With this option, the total
     contract value has increased to $203.7 million.

 --  The Defense Advanced Research Projects Agency (DARPA) selected
     Northrop Grumman to design the first-ever supersonic flying wing
     aircraft that can vary the sweep of its wing for the most
     efficient flight performance.

 --  Northrop Grumman was selected for Phase 3 of the Joint High Power
     Solid-State Laser program to develop "military-grade,"
     solid-state laser technology expected to pave the way for the
     U.S. military to incorporate high-energy laser systems
     across all services, including ships, manned and unmanned
     aircraft, and ground vehicles.

 --  Two RQ-8A Fire Scout unmanned aerial vehicles (UAVs) completed
     nine autonomous shipboard landings on board USS Nashville
     (LPD 13) off the coast of Naval Air Station Patuxent River, Md.
     This test marked the first time a U.S. Navy UAV had performed
     vertical landings on a moving ship without a pilot
     controlling the aircraft.

 --  The U.S. Air Force deployed the first two production RQ-4A Global
     Hawk unmanned aerial vehicles, designed and built by Northrop
     Grumman, to theater.

 --  The Aegis guided missile destroyer USS Forrest Sherman (DDG 98)
     was commissioned at Naval Air Station Pensacola, Fla.

 --  Northrop Grumman executed a $750 million accelerated share
     repurchase agreement with Credit Suisse, New York Branch, under
     which the company repurchased approximately 11.6 million shares
     of Northrop Grumman common stock.

 --  Northrop Grumman established a new sector, Northrop Grumman
     Technical Services, and elected James L. Cameron corporate vice
     president and president of the new sector.

 --  Retired U.S. Air Force Gen. Richard B. Myers, former chairman of
     the Joint Chiefs of Staff, was elected to Northrop Grumman's
     board of directors.  Northrop Grumman's board now totals
     12 members, 11 of whom are non-employee directors.
 

About Northrop Grumman

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 approximately 125,000 employees and operations in all 50 states and 25 countries, Northrop Grumman serves U.S. and international military, government and commercial customers.

Northrop Grumman will webcast its earnings conference call at noon EDT on Apr. 25, 2006. A live audio broadcast of the conference call along with a supplemental presentation will be available on the investor relations page of the company's Web site at http://www.northropgrumman.com .

Note: Certain statements and assumptions in this release contain or are based on "forward-looking" information that Northrop Grumman Corporation (the "Company") believes to be within the definition in the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties, and include, among others, statements in the future tense, and all statements accompanied by terms such as "project," "expect," "estimate," "assume," "believe," "plan," "guidance" or variations thereof. This information reflects the Company's best estimates when made, but the Company expressly disclaims any duty to update this information if new data become available or estimates change after the date of this release.

Such "forward-looking" information includes, among other things, financial guidance regarding sales, segment operating margin, pension expense, employer contributions under pension plans and medical and life benefits plans, and cash flow, and is subject to numerous assumptions and uncertainties, many of which are outside the Company's control. These include the Company's assumptions with respect to future revenues; expected program performance and cash flows; returns on pension plan assets and variability of pension actuarial and related assumptions; the outcome of litigation and appeals; hurricane recoveries; environmental remediation; divestitures of businesses; successful reduction of debt; successful negotiation of contracts with labor unions; effective tax rates and timing and amounts of tax payments; the results of any audit or appeal process with the Internal Revenue Service; and anticipated costs of capital investments, among other things.

The Company's operations are subject to various additional risks and uncertainties resulting from its position as a supplier, either directly or as subcontractor or team member, to the U.S. government and its agencies as well as to foreign governments and agencies; actual outcomes are dependent upon various factors, including, without limitation, the Company's successful performance of internal plans; government customers' budgetary constraints; customer changes in short-range and long-range plans; domestic and international competition in both the defense and commercial areas; product performance; continued development and acceptance of new products and, in connection with any fixed-price development programs, controlling cost growth in meeting production specifications and delivery rates; performance issues with key suppliers and subcontractors; government import and export policies; acquisition or termination of government contracts; the outcome of political and legal processes and of the assertion or prosecution of potential substantial claims by or on behalf of a U.S. government customer; natural disasters, including recent hurricanes affecting the Company's Gulf Coast shipyards and the associated risks underlying the Company's assumptions regarding achieving expected learning-curve progress, amounts and timing of recoveries under insurance contracts, availability of materials and supplies, continuation of the supply chain, contractual performance relief and the application of cost sharing terms, impacts of timing of cash receipts and the availability of other mitigating elements; terrorist acts; legal, financial, and governmental risks related to international transactions and global needs for military aircraft, military and civilian electronic systems and support, information technology, naval vessels, space systems and related technologies, as well as other economic, political and technological risks and uncertainties and other risk factors set out in the Company's filings from time to time with the Securities and Exchange Commission, including, without limitation, Company reports on Form 10-K and Form 10-Q.

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

  NORTHROP GRUMMAN CORPORATION          SCHEDULE 1         
                         FINANCIAL HIGHLIGHTS                       
                    ($ in millions, except per share)                  
                               (unaudited)                             
                                                                       
                                                                       
                                             FIRST QUARTER             
                                        ----------------------         
                                          2006          2005           
                                        ---------    ---------         
 OPERATING RESULTS HIGHLIGHTS                                          
   Total contract acquisitions (a)      $ 12,321     $  7,841          
   Total sales                             7,184        7,453          
   Total operating margin                    595          595          
   Income from continuing operations         357          398          
   Net income                                358          409          
   Diluted earnings per share from                                     
     continuing operations                  1.02         1.08          
   Diluted earnings per share               1.02         1.11          
                                                                       
   Net cash (used in) provided                                         
     by operating activities                (115)         263          
                                                                       
 --------------------------------------------------------------------- 
                                                                       
                                         MAR 31,       DEC 31,          
                                          2006          2005           
                                        ---------    ---------         
 BALANCE SHEET HIGHLIGHTS                                              
   Cash and cash equivalents            $    373     $  1,605          
   Accounts receivable, net                4,144        3,656          
   Inventoried costs, net                  1,294        1,174          
   Property, plant, and equipment, net     4,404        4,404          
   Total debt                              4,714        5,145          
   Net debt (b)                            4,341        3,540          
   Mandatorily redeemable                                              
     preferred stock                         350          350          
   Shareholders' equity                   16,619       16,828          
   Total assets                           33,517       34,214          
                                                                       
   Net debt to capitalization ratio (c)       20%          16%         
                                                                       
 --------------------------------------------------------------------- 
                                                                       
 (a)  Contract acquisitions represent orders received during the       
      period for which funding has been contractually obligated by     
      the customer.                                                    
 (b)  Total debt less cash and cash equivalents.                       
 (c)  Net debt divided by the sum of shareholders' equity and          
          total debt.                                                  


                     NORTHROP GRUMMAN CORPORATION       SCHEDULE 2              
                          OPERATING RESULTS                            
                  ($ in millions, except per share)                    
                             (unaudited)                               
                                                                       
                                            FIRST QUARTER              
                                         ------------------            
                                           2006      2005(a)           
                                         -------    -------            
 Sales                                                                 
 Information & Services                                                
    Mission Systems                      $ 1,264    $ 1,254            
    Information Technology                 1,057      1,034            
    Technical Services                       275        274            
                                         -------    -------            
        Total Information & Services       2,596      2,562            
                                                                       
 Aerospace                                                             
                                                                       
  Integrated Systems                       1,437      1,287            
  Space Technology                           855        863            
                                         -------    -------            
    Total Aerospace                        2,292      2,150            
                                                                       
 Electronics                               1,509      1,547            
 Ships                                     1,133      1,514            
 Other                                                   11            
 Intersegment Eliminations                  (346)      (331)           
                                         -------    -------            
                                                                       
                                         $ 7,184    $ 7,453            
                                         =======    =======            
                                                                       
 Operating margin                                                      
 Information & Services                                                
   Mission Systems                           117         93            
   Information Technology                     75         76            
   Technical Services                         13         12            
                                         -------    -------            
        Total Information & Services         205        181            
                                                                       
  Aerospace                                                            
   Integrated Systems                        149        142            
   Space Technology                           71         67            
                                         -------    -------            
    Total Aerospace                          220        209            
                                                                       
 Electronics                                 177        162            
 Ships                                        68        107            
 Other                                                   (1)           
 Intersegment Eliminations                   (26)       (20)           
                                         -------    -------            
                                                                       
  Total segment operating margin(b)          644        638            
                                                                       
 Reconciliation to operating margin                                    
   Unallocated expenses                      (35)       (27)           
   Net pension expense adjustment            (10)       (11)           
   Reversal of royalty income                                          
     included above                           (4)        (5)           
                                         -------    -------            
                                                                       
 Operating margin                            595        595            
                                                                       
 Interest income                              13         14            
 Interest expense                            (90)       (95)           
 Other, net                                   (1)        82            
                                         -------    -------            
                                                                       
 Income from continuing operations                                     
   before income taxes                       517        596            
                                                                       
 Federal and foreign income taxes            160        198            
                                         -------    -------            
                                                                       
 Income from continuing operations           357        398            
                                                                       
 Discontinued operations, net of tax           1         11            
                                         -------    -------            
                                                                       
 Net income                              $   358    $   409            
                                         =======    =======            
                                                                       
 Weighted average diluted shares                                       
   outstanding, in millions                350.8      367.0            
                                                                       
 Diluted earnings per share                                            
                                                                       
   Continuing operations                 $  1.02    $  1.08            
   Discontinued operations                              .03            
                                         -------    -------            
 Diluted earnings per share              $  1.02    $  1.11            
                                         =======    =======            
                                                                       
 --------------------------------------------------------------------- 
                                                                       
 (a)  Certain prior year amounts have been reclassified to conform     
      to the 2006 presentation.                                        
                                                                       
 (b)  Non-GAAP measure. Management uses segment operating margin       
      as an internal measure of financial performance for the          
      individual business segments.                                    
                                                                       
      The net pension expense adjustment reflects the excess           
      pension expense determined in accordance with accounting         
      principles generally accepted in the United States of America    
      over the pension expense included in the segments' cost of       
      sales to the extent that these costs are currently recognized    
      under US Government Cost Accounting Standards.                   



                     NORTHROP GRUMMAN CORPORATION           SCHEDULE 3           
                    ADDITIONAL SEGMENT INFORMATION                      
                           ($ in millions)                              
                             (unaudited)                                
                                                                        
                                                                        
                                   CONTRACT               FUNDED        
                                 ACQUISITIONS(a)        BACKLOG(b)      
                           -------------------------------------------  
                               FIRST QUARTER             March 31,      
                           -------------------    --------------------  
                              2006     2005(c)      2006       2005(c)  
                           --------   --------    --------    --------  
                                                                        
 Information & Services                                                 
                                                                        
 Mission Systems           $  1,728   $  1,229    $  2,940    $  3,034  
 Information Technology       1,278      1,103       2,631       2,280  
 Technical Services             451        270         552         495  
                           --------   --------    --------    --------  
   Total Information                                                    
     & Services               3,457      2,602       6,123       5,809  
                                                                        
 Aerospace                                                              
 Integrated Systems           2,735      1,926       5,043       5,314  
 Space Technology             1,641        873       1,785       1,759  
                           --------   --------    --------    --------  
   Total Aerospace            4,376      2,799       6,828       7,073  
                                                                        
 Electronics                  1,846      1,670       6,694       6,899  
 Ships                        3,054      1,166       8,050       8,817  
 Other                           (5)        13                      30  
 Intersegment Eliminations     (407)      (409)       (531)       (677) 
                           --------   --------    --------    --------  
 Total                     $ 12,321   $  7,841    $ 27,164    $ 27,951  
                           ========   ========    ========    ========  
                                                                
                                                                      
                                    TOTAL BACKLOG, March 31, 2006     
                                 ----------------------------------   
                                                            TOTAL     
                                  FUNDED     UNFUNDED(d)   BACKLOG    
                                 --------    ----------   ---------   
 Information & Services                                               
 Mission Systems                 $  2,940     $  7,706     $ 10,646   
 Information Technology             2,631        2,326        4,957   
 Technical Services                   552          868        1,420   
                                 --------     --------     --------   
   Total Information & Services     6,123       10,900       17,023   
                                                                      
 Aerospace                                                            
 Integrated Systems                 5,043        6,408       11,451   
 Space Technology                   1,785        8,668       10,453   
                                 --------     --------     --------   
   Total Aerospace                  6,828       15,076       21,904   
                                                                      
 Electronics                        6,694        1,803        8,497   
 Ships                              8,050        3,065       11,115   
 Intersegment Eliminations           (531)                     (531)  
                                 --------     --------     --------   
 Total                           $ 27,164     $ 30,844     $ 58,008   
                                 ========     ========     ========
                                                                     
 (a) Contract acquisitions represent orders received during the       
     period for which funding has been contractually obligated        
     by the customer.                                                 
 (b) Funded backlog represents unfilled orders for which funding has  
     been contractually obligated by the customer.                    
 (c) Certain prior year amounts have been reclassified to conform to  
     the 2006 presentation.                                           
 (d) Unfunded backlog represents firm orders for which funding is     
     not currently contractually obligated by the customer. Unfunded  
     backlog excludes unexercised contract options and unfunded       
     Indefinite Delivery Indefinite Quantity contract awards.         

                                          
                              
                        NORTHROP GRUMMAN CORPORATION        SCHEDULE 4            
                    REALIGNED SEGMENT OPERATING RESULTS                 
                             ($ in millions)                            
                               (unaudited)                              
                                                                        
                                                                        
                                     AS REPORTED                        
                                         2005                           
                     =================================================  
                                 Three Months Ended              Total  
 SALES                 Mar 31     Jun 30    Sep 30    Dec 31     Year   
                     -------------------------------------------------  
                                                                        
 Information                                                            
    & Services                                                          
   Mission Systems   $  1,305   $  1,320  $  1,405  $  1,332  $  5,362  
   Information                                                          
     Technology         1,229      1,331     1,311     1,383     5,254  
   Technical                                                            
     Services                                                           
                     -------------------------------------------------  
   Total Information                                                    
    & Services          2,534      2,651     2,716     2,715    10,616  
                                                                        
 Aerospace                                                              
                                                                        
   Integrated Systems   1,299      1,404     1,426     1,483     5,612  
   Space Technology       863        875       842       815     3,395  
                     -------------------------------------------------  
   Total Aerospace      2,162      2,279     2,268     2,298     9,007  
                                                                        
 Electronics            1,543      1,765     1,594     1,740     6,642  
                                                                        
 Ships                  1,514      1,587     1,222     1,463     5,786  
                                                                        
 Other                     11         11         9        11        42  
                                                                        
 Intersegment                                                           
   Eliminations          (311)      (331)     (363)     (367)   (1,372) 
                     =================================================  
                                                                        
      Total Sales    $  7,453   $  7,962  $  7,446  $  7,860  $ 30,721  
                     =================================================  
                                                                        
 SEGMENT OPERATING MARGIN                                               
                                                                        
 Information                                                            
    & Services                                                          
   Mission Systems   $     91   $     99  $    100  $     91  $    381  
   Information                                                          
     Technology            85         89        93        88       355  
   Technical Services                                                   
                     -------------------------------------------------  
   Total Information                                                    
    & Services            176        188       193       179       736  
                                                                        
 Aerospace                                                              
                                                                        
   Integrated Systems     136        108       112       118       474  
   Space Technology        62         69        67        57       255  
                     -------------------------------------------------  
   Total Aerospace        198        177       179       175       729  
                                                                        
 Electronics              161        198       182       169       710  
                                                                        
 Ships                    104        101       (68)      104       241  
                                                                        
 Other                     (1)        (5)       (5)       (6)      (17) 
                                                                        
 Intersegment                                                           
   Eliminations                                                         
                     =================================================  
                                                                        
   Total Segment                                                        
     Operating                                                          
     Margin(a)       $    638   $    659  $    481  $    621  $  2,399  
                     =================================================  
                                                                        
 (a) Non-GAAP measure. Management uses segment operating margin as an   
 internal measure of financial performance for the individual business  
 segments.                                                              
                                                                        
                                                                        
                                        REALIGNED                       
                                           2005                         
                     =================================================  
                                 Three Months Ended              Total  
 SALES                 Mar 31    Jun 30    Sep 30     Dec 31      Year  
                     -------------------------------------------------  
                                                                        
 Information &                                                          
    Services                                                            
   Mission Systems   $  1,254  $  1,271  $  1,356   $  1,279  $  5,160  
   Information                                                          
     Technology         1,034     1,127     1,110      1,194     4,465  
   Technical Services     274       286       276        267     1,103  
                     -------------------------------------------------  
   Total Information                                                    
     & Services         2,562     2,684     2,742      2,740    10,728  
                                                                        
 Aerospace                                                              
   Integrated Systems   1,287     1,391     1,417      1,474     5,569  
   Space Technology       863       875       842        815     3,395  
                     -------------------------------------------------  
   Total Aerospace      2,150     2,266     2,259      2,289     8,964  
                                                                        
 Electronics            1,547     1,769     1,595      1,743     6,654  
                                                                        
 Ships                  1,514     1,587     1,222      1,463     5,786  
                                                                        
 Other                     11        11         9         11        42  
                                                                        
 Intersegment                                                           
   Eliminations          (331)     (355)     (381)      (386)   (1,453) 
                     -------------------------------------------------  
                                                                        
      Total Sales    $  7,453  $  7,962  $  7,446   $  7,860  $ 30,721  
                     -------------------------------------------------  
                                                                        
 SEGMENT OPERATING MARGIN                                               
                                                                        
 Information                                                            
    & Services                                                          
                                                                        
   Mission Systems   $     93  $     99  $    101   $     94  $    387  
   Information                                                          
     Technology            76        77        81         79       313  
   Technical Services      12        14        17         17        60  
                     -------------------------------------------------  
   Total Information                                                    
      & Services          181       190       199        190       760  
                                                                        
 Aerospace                                                              
   Integrated Systems     142       117       120        126       505  
   Space Technology        67        74        72         61       274  
                     -------------------------------------------------  
   Total Aerospace        209       191       192        187       779  
                                                                        
 Electronics              162       199       182        169       712  
                                                                        
 Ships                    107       102       (65)       105       249  
                                                                        
 Other                     (1)       (5)       (5)        (6)      (17) 
                                                                        
 Intersegment                                                           
   Eliminations           (20)      (18)      (22)       (24)      (84) 
                     =================================================  
                                                                        
   Total Segment                                                        
     Operating                                                          
     Margin(a)       $    638  $    659  $    481   $    621  $  2,399  
                     =================================================  
                                                                        
 (a) Non-GAAP measure. Management uses segment operating margin as an   
 internal measure of financial performance for the individual business  
 segments.
 
  CONTACT:  Dan McClain (Media)
          Northrop Grumman Corporation
          (310) 201-3335
          
          Gaston Kent (Investors) 
          Northrop Grumman Corporation 
          (310) 201-3423