Earnings per Share from Continuing Operations Increase 44 Percent to 
 $0.79

 Income from Continuing Operations Increases 40 Percent

 Sales Increase 11 Percent to $7.4 Billion

 Guidance Raised for 2004 Sales, Earnings per Share and Net Cash 
 Provided by Operations
 

LOS ANGELES, July 29, 2004 (PRIMEZONE) -- Northrop Grumman Corporation (NYSE:NOC) reported that second quarter 2004 income from continuing operations rose 40 percent to $289 million, or $0.79 per diluted share, compared with $207 million, or $0.55 per diluted share, for the same period of 2003. The increase reflects higher sales and operating margin, as well as a lower tax rate than in the second quarter of 2003. Sales for the second quarter of 2004 increased 11 percent to $7.4 billion from $6.6 billion for the same period of 2003.

"These results reinforce Northrop Grumman's record of solid sales and earnings growth and demonstrate our ability to consistently deliver strong financial performance," said Ronald D. Sugar, chairman, chief executive officer and president. "Based on the strength of year-to-date results, we now expect 2004 sales to increase to around $29 billion, earnings per share from continuing operations to grow to between $2.90 and $3.00, and net cash provided by operations to be about $1.7 billion."

Operating margin for the 2004 second quarter increased 24 percent to $483 million from $391 million in the same period a year ago. Second quarter 2004 operating margin includes lower pension expense and higher unallocated corporate expenses than in the second quarter of 2003, as well as the effect of a $60 million pre-tax charge for increased projected costs for the F-16 Block 60 fixed-price development combat avionics program reported in the Electronic Systems segment.

Second quarter 2004 pension expense, as determined in accordance with accounting principles generally accepted in the United States, declined to $86 million from $140 million in the second quarter of 2003. Pension expense allocated to contracts pursuant to U.S. Government Cost Accounting Standards (CAS) increased operating margin by $77 million in the second quarter of 2004 and $66 million for the comparable 2003 period.

Unallocated corporate expenses were $53 million in the second quarter of 2004 compared with $22 million in the second quarter of 2003. The $31 million increase in unallocated corporate expenses was primarily due to higher mark-to-market stock compensation expense and deferred state income taxes.

The effective tax rate applied to income from continuing operations for the 2004 second quarter was 26 percent compared with 31 percent in the 2003 second quarter. During the second quarter of 2004, the company completed studies and recognized additional tax credits of $31 million related to research and development and export sales activities for the years 1997 through 2003.

Net income for the 2004 second quarter was $295 million, or $0.81 per diluted share, compared with $205 million, or $0.54 per diluted share for the same period of 2003.

Contract acquisitions were $5.3 billion in the second quarter of 2004 compared with $5.2 billion for the same period of 2003. Total funded backlog was $26.2 billion at June 30, 2004, compared with $26.9 billion at Dec. 31, 2003. Total backlog, which includes funded backlog and firm orders for which funding is not currently contractually obligated by the customer, was $57.2 billion at June 30, 2004, compared with $58.2 billion at Dec. 31, 2003.

2004 Guidance

The company expects 2004 sales of approximately $29 billion versus previous guidance of approximately $28 billion. Earnings per share from continuing operations are now expected to range between $2.90 and $3.00 versus previous guidance of between $2.80 and $2.95. Net cash provided by operating activities is expected to be approximately $1.7 billion in 2004, versus the prior estimate of approximately $1.5 billion.

  Segment Results 
 ---------------  
 
 ELECTRONIC SYSTEMS                ($ in millions)    
                                   SECOND QUARTER  
                               -----------------------
                                 2004           2003  
                               --------       --------
 Sales                          $1,591         $1,512 
 Operating Margin                  138            148%
 Operating margin to sales         8.7%           9.8%
 

Electronic Systems second quarter 2004 sales increased 5 percent from the second quarter of 2003 due to revenue increases in Government Systems and Defensive Systems. Sales in Government Systems rose 72 percent, primarily due to higher sales to the U.S. Postal Service. Defensive Systems revenue increased 39 percent reflecting increased sales of infrared countermeasures for military helicopters, LITENING targeting pods, and test equipment. These sales increases were partially offset by lower sales in Aerospace Systems and Space Systems. Second quarter 2004 operating margin declined 7 percent due to a $60 million pre-tax charge for increased projected costs for the F-16 Block 60 fixed-price development combat avionics program. The principal portion of the charge reflects a higher estimate to complete qualification and production of the "Falcon Edge" electronic warfare suite. The impact of the charge was partially offset by improved performance and contract close-outs for several programs in the Navigation Systems, Defensive Systems, Aerospace Systems, and Government Systems business areas.

  SHIPS

                                  ($ in millions)
                                   SECOND QUARTER
                              -----------------------
                                2004           2003
                              --------       --------
 Sales                         $1,557         $1,368
 Operating Margin                 100             23
 % Operating margin to sales      6.4%           1.7%
 

Ships 2004 second quarter sales, which include the financial results of the Newport News and Ship Systems sectors, increased 14 percent compared with the 2003 second quarter, driven by higher sales in Surface Combatants, Amphibious & Auxiliary, and Submarines, which were partially offset by a decline in revenue in Aircraft Carriers. Surface Combatants sales rose 38 percent, primarily due to higher DD(X) program revenue. Amphibious & Auxiliary revenue rose 31 percent due to higher revenue in the LPD-17 and LHD-8 programs. Operating margin for the 2004 second quarter increased more than fourfold compared with the 2003 second quarter due to a $68 million pre-tax charge for the commercial Polar Tanker program recorded in the second quarter of 2003.

  INFORMATION TECHNOLOGY

                                  ($ in millions)
                                   SECOND QUARTER
                              -----------------------
                                2004           2003
                              --------       --------
 Sales                         $1,225         $1,123
 Operating Margin                  73             62
 % Operating margin to sales      6.0%           5.5%
 

Information Technology second quarter 2004 sales increased 9 percent due to higher revenue in Government Information Technology and Enterprise Information Technology. Government Information Technology revenue increased 13 percent, primarily due to new business awards and organic sales growth in existing programs. Enterprise Information Technology increased 12 percent, primarily due to expanded opportunities for product and service sales with civil agencies. Second quarter 2004 operating margin increased 18 percent, as compared with the second quarter of 2003, primarily due to higher revenue in Government Information Technology and Enterprise Information Technology and improved program performance in Commercial Information Technology.

  MISSION SYSTEMS

                                 ($ in millions)
                                 SECOND QUARTER
                             -----------------------
                               2004           2003
                             --------       --------
 Sales                        $1,298         $1,100
 Operating Margin                 86             78
 % Operating margin to sales     6.6%           7.1%
 

Mission Systems second quarter 2004 sales increased 18 percent, primarily due to revenue increases in Command, Control & Intelligence Systems and Missile Systems. Command, Control & Intelligence Systems revenue increased 26 percent, primarily due to higher revenue for the Tactical Automated Security Systems II program. Missile Systems revenue increased 12 percent, reflecting revenue from the new Kinetic Energy Interceptors program and the XonTech acquisition, as well as increased revenue from existing programs. Second quarter 2004 operating margin rose 10 percent due to higher volume compared with second quarter 2003 results. Operating margin in the 2003 second quarter included the recognition of favorable performance on a restricted program.

  INTEGRATED SYSTEMS

                                 ($ in millions)
                                 SECOND QUARTER
                             -----------------------
                               2004           2003
                             --------       --------
 Sales                        $1,133         $1,004
 Operating Margin                 90            124
 % Operating margin to sales     7.9%          12.4%
 

Integrated Systems sales for the second quarter of 2004 increased 13 percent over the second quarter of 2003, primarily due to higher sales in Airborne Early Warning/Electronic Warfare Systems and Air Combat Systems. Airborne Early Warning/Electronic Warfare Systems revenue increased 28 percent due to higher volume in the E-2 Advanced Hawkeye and EA-6B programs. Air Combat Systems revenue increased 8 percent due to higher volume in the F-35, Global Hawk, and Multi-Platform Radar Technology Insertion programs. Operating margin for the second quarter of 2004 declined 27 percent reflecting the segment's changing business mix, which includes a greater proportion of lower margin development programs, including F-35, Global Hawk, E-2 Advanced Hawkeye, and the E-10A.

  SPACE TECHNOLOGY

                                 ($ in millions)
                                  SECOND QUARTER
                             -----------------------
                               2004           2003
                             --------       --------
 Sales                         $836           $733
 Operating Margin                61             55
 % Operating margin to sales    7.3%           7.5%
 

Space Technology second quarter 2004 sales rose 14 percent over second quarter 2003 results, primarily due to higher sales in Software Defined Radios, Civil Space, and Intelligence, Surveillance & Reconnaissance. Software Defined Radios revenue increased 38 percent, primarily due to higher volume in the F-35 and F/A-22 programs. Civil Space revenue increased 28 percent, primarily due to higher volume in the National Polar-Orbiting Operational Environmental Satellite System and James Webb Space Telescope programs. Intelligence, Surveillance & Reconnaissance revenue also rose more than 18 percent. Second quarter 2004 operating margin rose 11 percent as compared with the second quarter 2003, primarily due to higher sales volume.

Debt and Cash Measurements

Northrop Grumman's total debt was $5.8 billion at June 30, 2004, compared with $5.9 billion at Dec. 31, 2003. Interest expense for the second quarter of 2004 declined to $112 million from $119 million for the 2003 second quarter as a result of a reduction in fixed-rate debt acquired with the acquisition of TRW Inc. Second quarter 2004 interest expense also includes the impact of the adoption of Statement of Financial Accounting Standards No. 150 -- Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity, which was adopted on July 1, 2003, and required $6 million of dividends payable on mandatorily redeemable preferred stock for the quarter to be classified as interest expense.

Net cash provided by operating activities for the 2004 second quarter decreased to $610 million versus net cash provided by operating activities of $737 million for the second quarter of 2003. The decrease was primarily due to higher tax payments in the second quarter of 2004 compared with the second quarter of 2003.

During the second quarter of 2004, the company repurchased approximately 2.4 million shares of its common stock at an average price of $49.92 per share, after giving effect for the 2-for-1 stock split, in the form of a stock dividend, effective June 21, 2004. Since the Aug. 20, 2003, announcement of a plan to repurchase up to $700 million of Northrop Grumman common stock, the company has repurchased approximately 10.4 million shares at an average price of $47.50.

About Northrop Grumman

Northrop Grumman Corporation is a global defense company headquartered in Los Angeles, Calif. Northrop Grumman provides a broad array of technologically advanced, innovative products, services and solutions in systems integration, defense electronics, information technology, advanced aircraft, shipbuilding and space technology. The company has 125,000 employees and operates in all 50 states and 25 countries and serves U.S. and international military, government and commercial customers.

Certain statements and assumptions in this release contain or are based on "forward-looking" information (that Northrop Grumman 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," "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 becomes available or estimates change after the date of this release.

Such "forward-looking" information includes, among other things, projected deliveries, expected funding for various programs, future effective income tax rates, 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 Northrop Grumman's control. These include Northrop Grumman'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, 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, and anticipated costs of capital investments, among other things. Northrop Grumman'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, Northrop Grumman'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; natural disasters and 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 Northrop Grumman's filings from time to time with the Securities and Exchange Commission, including, without limitation, Northrop Grumman reports on Form 10-K and Form 10-Q.

Northrop Grumman will webcast its security analyst conference call at 12 p.m. EDT on July 29, 2004. 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 .

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

  NORTHROP GRUMMAN CORPORATION      SCHEDULE 1
                           FINANCIAL HIGHLIGHTS
                     ($ in millions, except per share)
                               (unaudited)

                                  SECOND QUARTER  FIRST SIX MONTHS
                                ----------------- -----------------
                                  2004     2003     2004     2003
                                -------- -------- -------- --------
 OPERATING RESULTS HIGHLIGHTS

  Total contract acquisitions
   (1)                          $  5,344 $  5,240 $ 13,764 $ 12,330
  Total sales                      7,374    6,627   14,479   12,493
  Total operating margin             483      391      917      719
  Income from continuing
   operations                        289      207      517      381
  Net income                         295      205      527      458
  Diluted earnings per share
   from continuing operations        .79      .55     1.42     1.00
  Diluted earnings per share         .81      .54     1.45     1.21

  Net cash provided by (used in)
   operating activities              610      737      873     (375)


 ------------------------------------------------------------------
                                           JUNE 30, DECEMBER 31,
                                             2004     2003 (4)
                                           -------    -------
 BALANCE SHEET HIGHLIGHTS

  Cash and cash equivalents                $   559    $   342
  Accounts receivable, net                   3,487      3,198
  Inventoried costs, net                     1,220      1,147
  Property, plant, and equipment,
   net                                       4,033      4,036
  Total debt                                 5,764      5,881
  Net debt (2)                               5,205      5,539
  Mandatorily redeemable preferred stock       350        350
  Shareholders' equity                      16,012     15,785
  Total assets                              33,327     33,009

  Net debt to capitalization ratio (3)          24%        26%

 ------------------------------------------------------------------

 (1) Contract acquisitions represent orders received during
     the period for which funding has been contractually
     obligated by the customer.

 (2) Total debt less cash and cash equivalents.
 (3) Net debt divided by the sum of shareholders' equity and total 
     debt.
 (4) Certain prior year amounts have been reclassified to conform to 
     the 2004 presentation.


                       NORTHROP GRUMMAN CORPORATION       SCHEDULE 2
                           OPERATING RESULTS
                    ($ in millions, except per share)
                             (unaudited)


                               SECOND QUARTER     FIRST SIX MONTHS
                             ------------------  ------------------
                               2004    2003 (1)    2004    2003 (1)
                             --------  --------  --------  --------
 Sales

  Electronic Systems         $  1,591  $  1,512  $  3,129  $  2,850
  Ships                         1,557     1,368     3,001     2,563
  Information Technology        1,225     1,123     2,455     2,214
  Mission Systems               1,298     1,100     2,481     2,023
  Integrated Systems            1,133     1,004     2,280     1,829
  Space Technology                836       733     1,642     1,381
  Intersegment Eliminations      (266)     (213)     (509)     (367)
                             --------  --------  --------  --------

                             $  7,374  $  6,627  $ 14,479  $ 12,493
                             ========  ========  ========  ========

 Operating margin

  Electronic Systems         $    138  $    148  $    296  $    269
  Ships                           100        23       186        98
  Information Technology           73        62       144       123
  Mission Systems                  86        78       162       134
  Integrated Systems               90       124       206       212
  Space Technology                 61        55       112        87
                             --------  --------  --------  --------

 Total segment operating
  margin                          548       490     1,106       923


 Reconciliation to
  operating margin (2)

  Unallocated expenses            (53)      (22)     (163)      (52)
  Pension expense                 (86)     (140)     (176)     (280)
  Reversal of CAS pension
   expense included above          77        66       157       137
  Reversal of royalty
   income included above           (3)       (3)       (7)       (9)
                             --------  --------  --------  --------

 Operating margin                 483       391       917       719

 Interest income                   16        17        32        29
 Interest expense                (112)     (119)     (225)     (263)
 Other, net                         3        11        13        28
                             --------  --------  --------  --------

 Income from continuing
  operations before income
  taxes                           390       300       737       513

 Federal and foreign income
  taxes                           101        93       220       132
                             --------  --------  --------  --------

 Income from continuing
  operations                      289       207       517       381

 Income from discontinued
  operations, net of tax            6         2         7        82
 (Loss) gain from disposal
  of discontinued
  operations, net of tax                     (4)        3        (5)
                             --------  --------  --------  --------

 Net income                  $    295  $    205  $    527  $    458
                             ========  ========  ========  ========


 Diluted earnings per share

 Continuing operations       $    .79  $    .55  $   1.42  $   1.00
 Discontinued operations          .02                 .02       .22
 Disposal of discontinued
  operations                               (.01)      .01      (.01)
                             --------  --------  --------  --------

 Diluted earnings per share  $    .81  $    .54  $   1.45  $   1.21
                             ========  ========  ========  ========

 ------------------------------------------------------------------
 (1)  Certain prior year amounts have been reclassified to conform to
      the 2004 presentation.

 (2)  Pension expense is included in determining the segments'
      operating margin to the extent that the cost is currently
      recognized under U.S. Government Cost Accounting Standards 
      (CAS).  In order to reconcile from segment operating margin 
      to total company operating margin, these amounts are reported 
      under the caption "Reversal of CAS pension expense included 
      above." Total pension expense or income determined in 
      accordance with accounting principles generally accepted in 
      the United States is reported separately as a reconciling item 
      under the caption "Pension expense." The reconciling item 
      captioned "Unallocated expenses" includes the portion of 
      corporate, legal, environmental, other retiree benefits, 
      stock compensation, and other expenses not allocated to the 
      segments.

                      NORTHROP GRUMMAN CORPORATION         SCHEDULE 3
                     ADDITIONAL SEGMENT INFORMATION
                            ($ in millions)
                              (unaudited)
                                CONTRACT                 FUNDED
                             ACQUISITIONS(1)            BACKLOG(2)
 --------------------------------------------------------------------
                  SECOND QUARTER   FIRST SIX MONTHS      JUNE 30,
                 ----------------  ----------------  ----------------
                   2004   2003 (4)   2004   2003 (4)   2004   2003 (4)
                 -------  -------  -------  -------  -------  -------
 Electronic
  Systems        $ 1,489  $ 1,336  $ 3,261  $ 2,914  $ 6,600  $ 6,559
 Ships               592      782    2,110    1,632    8,858    9,430
 Information
  Technology       1,207      930    2,401    2,256    2,265    2,151
 Mission Systems     990      893    2,326    2,105    2,750    2,283
 Integrated
  Systems            820      893    2,588    2,558    4,606    4,494
 Space Technology    552      643    1,685    1,410    1,601    1,337
 Intersegment
  Eliminations      (306)    (237)    (607)    (545)    (529)    (364)
                 -------  -------  -------  -------  -------  -------
 Total           $ 5,344  $ 5,240  $13,764  $12,330  $26,151  $25,890
                 =======  =======  =======  =======  =======  =======

                               TOTAL BACKLOG, JUNE 30, 2004
                             --------------------------------
                                                       TOTAL
                              FUNDED     UNFUNDED(3)  BACKLOG
                             --------    --------    -------- 
 Electronic Systems          $  6,600    $  2,239    $  8,839
 Ships                          8,858       4,926      13,784
 Information Technology         2,265       2,043       4,308
 Mission Systems                2,750       7,248       9,998
 Integrated Systems             4,606       6,018      10,624
 Space Technology               1,601       8,590      10,191
 Intersegment Eliminations       (529)                   (529)
                             --------    --------    --------
 Total                       $ 26,151    $ 31,064    $ 57,215
                             ========    ========    ========
  
 (1) Contract acquisitions represent orders received during the
     period for which funding has been contractually obligated by
     the customer. 
   
 (2) Funded backlog represents unfilled orders for which funding
     has been contractually obligated by the customer.

 (3) 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 (IDIQ) 
     orders.
 (4) Certain prior year amounts have been reclassified to conform
     to the 2004 presentation.
        
 -----------------------------------------------------------------

 AMORTIZATION OF PURCHASED INTANGIBLES                         
                                                              
                          SECOND QUARTER   FIRST SIX MONTHS   
                          -------------     -------------     
                          2004     2003     2004     2003     
                          ----     ----     ----     ----     
 Electronic Systems       $ 22     $ 22     $ 43     $ 43     
 Ships                      11       11       21       21     
 Information Technology      4        5        9       10     
 Mission Systems             8        7       16       16     
 Integrated Systems          3        3        7        7     
 Space Technology            9        9       17       17     
                          ----     ----     ----     ----     
                          $ 57     $ 57     $113     $114     
                          ====     ====     ====     ====     


                  NORTHROP GRUMMAN CORPORATION           SCHEDULE 4
             SALES BY BUSINESS AREA WITHIN SEGMENTS
                        ($ in millions)
                           (unaudited)


                             SECOND QUARTER     FIRST SIX MONTHS
                           ------------------  ------------------
                             2004    2003 (1)    2004    2003 (1)
                           --------  --------  --------  --------
 Electronic Systems

  Aerospace Systems        $    362  $    429  $    754  $    785
  C4ISR & Naval Systems         327       327       659       606
  Defensive Systems             267       192       522       406
  Navigation Systems            199       191       383       365
  Government Systems            177       103       301       189
  Space Systems                 116       138       227       248
  Other                         143       132       283       251
                           --------  --------  --------  --------
                              1,591     1,512     3,129     2,850
                           --------  --------  --------  --------
 
 Ships

  Surface Combatants            511       371       981       692
  Aircraft Carriers             475       528       915       998
  Amphibious & Auxiliary        346       265       652       468
  Submarines                    178       160       340       292
  Commercial &
   International                 34        19        72        55
  Services & Other               35        36        76        75
  Intrasegment
   Eliminations                 (22)      (11)      (35)      (17)
                           --------  --------  --------  --------
                              1,557     1,368     3,001     2,563
                           --------  --------  --------  --------
 
 Information Technology

  Government Information
   Technology                   740       654     1,493     1,278
  Enterprise Information
   Technology                   202       180       378       362
  Commercial Information
   Technology                   157       169       332       326
  Technology Services           154       152       313       305
  Intrasegment
   Eliminations                 (28)      (32)      (61)      (57)
                           --------  --------  --------  --------
                              1,225     1,123     2,455     2,214
                           --------  --------  --------  --------
    
 Mission Systems

  Command, Control &
   Intelligence Systems         791       630     1,514     1,187
  Missile Systems               337       302       622       514
  Technical & Management
   Services                     185       177       373       342
  Intrasegment
   Eliminations                 (15)       (9)      (28)      (20)
                           --------  --------  --------  --------
                              1,298     1,100     2,481     2,023
                           --------  --------  --------  --------
 
 Integrated Systems

  Air Combat Systems            670       619     1,382     1,135
  Airborne Early Warning/
   Electronic Warfare
   Systems                      318       248       598       427
  Airborne Ground
   Surveillance/Battle
   Management                   147       139       303       269
  Intrasegment
   Eliminations                  (2)       (2)       (3)       (2)
                           --------  --------  --------  --------
                              1,133     1,004     2,280     1,829
                           --------  --------  --------  --------
  
 Space Technology

  Intelligence,
   Surveillance &
   Reconnaissance               263       223       500       425
  Civil Space                   164       128       319       246
  Software Defined Radios       142       103       285       188
  Satellite Communications      126       131       258       250
  Missile & Space Defense       102       106       201       195
  Technology                     63        55       115       100
  Intrasegment
   Eliminations                 (24)      (13)      (36)      (23)
                           --------  --------  --------  --------
                                836       733     1,642     1,381
                           --------  --------  --------  --------

 Intersegment Eliminations     (266)     (213)     (509)     (367)

                           --------  --------  --------  --------
 Total Sales               $  7,374  $  6,627  $ 14,479  $ 12,493
                           ========  ========  ========  ========

 (1)  Certain prior year amounts have been reclassified to conform to 
      the 2004 presentation.
 
  CONTACT:  Frank Moore (Media) 
          Northrop Grumman Corporation
          (310) 201-3335

          Gaston Kent (Investors) 
          (310) 201-3423