Earnings per Share from Continuing Operations Increase 25 Percent 
 to $1.26

 Income from Continuing Operations Increases 20 Percent to $442 
 Million

 Earnings per Share Increase 23 Percent to $1.23

 Net Income Increases 17 Percent to $430 Million

 Cash from Continuing Operations of $657 Million

 Contract Acquisitions Increase 52 Percent to $8.1 Billion 

 2006 Guidance for Sales Lowered to Approximately $30.5 Billion

 2006 Guidance for Earnings per Share Increased to $4.35 to $4.45
 

LOS ANGELES -- July 27, 2006 -- Northrop Grumman Corporation (NYSE:NOC) reported second quarter 2006 income from continuing operations of $442 million, or $1.26 per diluted share, compared with $369 million, or $1.01 per diluted share, for the same period of 2005. Second quarter 2006 sales were $7.6 billion compared with $7.8 billion in the second quarter of 2005. Second quarter 2006 and second quarter 2005 operating results reflect the reclassification of certain operations from continuing to discontinued operations.

"With this quarter's solid results, including contract acquisition growth of more than 50 percent, we continue to expect double-digit growth in 2006 earnings per share driven by expanding operating margin and a lower share count," said Ronald D. Sugar, Northrop Grumman chairman and chief executive officer. "We are raising our 2006 earnings per share estimate to a range of $4.35 to $4.45, and we continue to expect cash from operations of $2.3 to $2.6 billion. Electronics maintained their strong operating margin rate, and Information & Services, Aerospace and Ships all posted double-digit growth in operating margins and substantially higher margin rates, reflecting our continued focus on operating performance."

The company's second quarter 2006 segment operating margin increased 12 percent to $742 million from $664 million in the second quarter of 2005. Operating margin increased 10 percent to $682 million from $621 million in the second quarter of 2005.

Net interest expense for the 2006 second quarter was $84 million compared with $69 million in the prior year period. Net interest expense in the second quarter of 2005 included interest income recognized for a state tax refund related to research and development tax credits.

Other income/expense for the 2006 second quarter was an expense of $9 million compared with income of $7 million in the prior year period. The change was primarily due to a $13 million write-down of marketable securities in the 2006 second quarter.

The effective tax rate applied to income from continuing operations for the 2006 second quarter was 25 percent compared with 34 percent in the 2005 second quarter. During the 2006 second quarter, the company received final approval for the agreement previously reached with the Internal Revenue Service regarding audits of the company's B-2 program in years 1997 through 2000. As a result, the company recognized tax benefits of $48 million in the 2006 second quarter due to the reversal of previously established expense provisions. The company now expects its 2006 tax rate to range between 31 and 32 percent, compared with its prior guidance of approximately 33 percent.

Net income for the 2006 second quarter increased 17 percent to $430 million, or $1.23 per diluted share, from $367 million, or $1.00 per diluted share, for the same period of 2005. Earnings per share are based on weighted average diluted shares outstanding of 350.1 million for the second quarter of 2006 and 365.2 million for the second quarter of 2005.

Contract acquisitions increased 52 percent to $8.1 billion in the second quarter of 2006 from $5.4 billion for the same period of 2005. Total backlog, which includes funded backlog and firm orders for which funding is not currently contractually obligated by the customer, was $58.1 billion at June 30, 2006 compared with $56.9 billion at June 30, 2005.

Cash Measurements, Debt and Share Repurchases

Cash provided by continuing operations in the second quarter of 2006 totaled $657 million compared with cash provided by continuing operations of $823 million in the second quarter of 2005. Capital spending totaled $151 million in the 2006 second quarter, including $42 million for Hurricane Katrina capital expenditures at Ships, compared with total capital spending of $149 million in the 2005 second quarter. Since Aug. 29, 2005, hurricane-related insurance recoveries for damage, repair and restoration have totaled $233 million compared with total hurricane-related expenditures of $311 million.

Cash and cash equivalents were $751 million at June 30, 2006 compared with $1.6 billion at Dec. 31, 2005. During the first six months of the year the company reduced total debt by approximately $510 million and repurchased $825 million of its common stock (including approximately 11.6 million shares under an Accelerated Share Repurchase agreement).

Under the most recent $1.5 billion share repurchase authorization announced in October 2005, $176 million remains. The company expects to complete the repurchase of shares under the current authorization by the end of 2006. Common shares outstanding totaled 344.4 million at June 30, 2006.

Reclassification of Reseller Business to Discontinued Operations

In January 2006, the company announced its decision to exit the reseller business (previously reported under Information Technology as the Enterprise Information Technology business area). The shutdown of this business was completed in the 2006 second quarter, and the results of this business have been reclassified to discontinued operations.

Schedule 4 of this earnings release provides previously reported quarterly financial results and restated results reflecting the reclassification of the reseller business from continuing to discontinued operations.

2006 Guidance

For 2006, the company expects sales of approximately $30.5 billion, compared with prior guidance of approximately $31 billion. The company expects earnings per share from continuing operations of $4.35 to $4.45, versus prior guidance of $4.25 to $4.40 per share. The company continues to expect 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. The company categorizes 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 reported as Electronics. The Newport News and Ship Systems sectors are reported as Ships.

The company also revised its reporting of intercompany margin recognition and elimination for the company's operating segments. The operating information shown below includes intersegment sales and operating margin that eliminate in consolidation, as shown in Schedule 2.

  Information & Services
                                Second Quarter ($ Millions)
                                2006                      2005
                              Operating    % of         Operating   % of
                      Sales    Margin     Sales  Sales   Margin    Sales
 Mission Systems     $1,338     $132      9.9%   $1,271    $99      7.8%
  Information
   Technology           993       86      8.7%      968     82      8.5%
  Technical Services    300       16      5.3%      286     14      4.9%
                     $2,631     $234      8.9%   $2,525   $195      7.7%
 

Information & Services sales increased $106 million, or 4 percent, during the second quarter of 2006 due to higher sales in all three of its operating segments. The sales increase at Mission Systems includes higher volume in Command, Control & Intelligence Systems, Technical & Management Services, and Missile Systems programs. Higher sales in Information Technology were due to increased activity on Defense and Intelligence programs, which were partially offset by lower sales in Civilian Agencies programs.

The 20 percent year-over-year increase in Information & Services operating margin includes higher operating margin from all three segments, but was primarily driven by a 33 percent increase in Mission Systems second quarter operating margin. The increase at Mission Systems reflects improved program performance and lower amortization expense for purchased intangibles than in the prior year period.

  Aerospace
                                 Second Quarter ($ Millions)
                                2006                       2005
                              Operating  % of            Operating   % of
                      Sales    Margin    Sales    Sales    Margin    Sales
 Integrated Systems  $1,397    $142      10.2%    $1,391   $117      8.4%
 Space Technology       865      81       9.4%       875     74      8.5%
                     $2,262    $223       9.9%    $2,266    $191     8.4%
 

Second quarter 2006 Aerospace sales were comparable to the second quarter of 2005. Sales at Integrated Systems increased $6 million due to higher volume on the F/A-18 and F-35 programs, substantially offset by lower volume on the E-2D Advanced Hawkeye, E-2C Multi-year and Joint STARS programs. Space Technology sales decreased 1 percent due to lower volume for restricted programs, which was partially offset by higher sales in Satellite Communications programs.

Aerospace second quarter 2006 operating margin increased 17 percent from the second quarter of 2005 and includes higher operating margin at both Integrated Systems and Space Technology. Integrated Systems operating margin increased 21 percent over the prior year period due to improved program performance. Space Technology operating margin increased 9 percent primarily due to performance improvements in Software Defined Radios.

  Electronics
                              Second Quarter ($ Millions)
                            2006                       2005
                          Operating  % of             Operating  % of
                  Sales    Margin    Sales    Sales    Margin    Sales
                  $1,635   $181      11.1%    $1,769   $199      11.2%
 

Electronics second quarter 2006 sales decreased 8 percent from the second quarter of 2005 primarily due to lower production rates on several programs. Second quarter sales for the F-16 Block 60 and MESA radar programs declined as hardware production for these programs winds down. Longbow missile sales were also lower as this program nears completion. Second quarter 2006 sales also reflect the divestiture of Interconnect Technologies.

Electronics second quarter 2006 operating margin decreased 9 percent from the second quarter of 2005, corresponding to the decreased sales volume, with improved program performance in some areas and lower expense for amortization of purchased intangibles offsetting forward loss provisions on two fixed-price development programs.

  Ships
                                Second Quarter ($ Millions)
                            2006                       2005
                          Operating  % of            Operating   % of
                  Sales    Margin    Sales    Sales    Margin    Sales
                  $1,437    $129      9.0%   $1,587     $102      6.4%
 

Ships second quarter 2006 sales decreased 9 percent from the second quarter of 2005 and included higher sales in submarine and carrier programs, which were offset by lower volume on the DDG 1000 program (formerly known as the DD(X) program) and hurricane-related work delays on the LPD, LHD and DDG programs.

Ships operating margin increased 26 percent from the second quarter of 2005 primarily due to material incentives and improved performance for the Virginia-class Block II submarine program.

  Second Quarter 2006 Highlights

    *  The U.S. Navy awarded Northrop Grumman a $2.49 billion shipbuilding
       contract for the construction and further development of two San
       Antonio (LPD 17)-class amphibious transport dock ships, LPD 22 and
       LPD 23, as well as the purchase of long-lead materials and equipment
       for a third ship, LPD 24.

    *  The U.S. Internal Revenue Service selected a team led by Northrop
       Grumman as one of 21 companies to provide systems support, security
       and business services for the U.S. Department of the Treasury and
       other federal agencies. The indefinite delivery/indefinite quantity
       contract is part of the Total Information Processing Support
       Services-3 (TIPSS-3) program, funded at a maximum of $3 billion,
       collectively.

    *  The U.S. Navy awarded Northrop Grumman a sole-source, indefinite
       delivery/indefinite quantity contract for full-rate production
       acquisition of new EA-6B Prowler Improved Capability (ICAP) III
       systems.  Under this contract, the Navy has made an initial $73
       million purchase.

    *  The Federal Aviation Administration (FAA) selected Northrop 
       Grumman for a $40 million award to modify transmitters on 135 
       ASR-9 air traffic control radars.  This is the latest in the 
       FAA's multi-phase, ASR-9 sustainment program, intended to extend 
       the service life of the ASR-9
       through the year 2025.

    *  Northrop Grumman celebrated a significant chapter in its history 
       as it delivered its first submarine to the U.S. Navy in a decade,
       the USS Texas, on June 20, 2006.

    *  Northrop Grumman delivered the sixth RQ-4 Global Hawk unmanned
       aerial vehicle to the U.S. Air Force on April 5, increasing the
       service's intelligence, surveillance and reconnaissance 
       capabilities.

    *  Northrop Grumman opened its Unmanned Systems Center production
       facility in Moss Point, Miss., where the MQ-8B Fire Scout and 
       portions of the RQ-4B Global Hawk unmanned aerial vehicles will 
       be produced.

    *  Northrop Grumman's board of directors approved a 15 percent 
       increase of the common stock quarterly dividend to $0.30 per 
       share from $0.26 per share.
 

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 more than 120,000 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 12 noon EDT on July 27, 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, technical services 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.

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
                               ------------------  ------------------
                                 2006    2005 (d)    2006    2005 (d)
                               --------  --------  --------  --------
 OPERATING RESULTS HIGHLIGHTS

 Total contract 
  acquisitions (a)              $ 8,133   $ 5,368   $20,383   $13,075
 Total sales                      7,601     7,807    14,694    15,109
 Total operating margin             682       621     1,286     1,216
 Income from continuing 
  operations                        442       369       804       767
 Net income                         430       367       787       776
 Diluted earnings per share 
  from continuing 
  operations                       1.26      1.01      2.29      2.10
 Diluted earnings per share        1.23      1.00      2.24      2.12

 Cash provided by 
  continuing operations             657       823       624     1,095
 Net cash provided by operating 
  activities                        638       813       523     1,076

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


                                JUNE 30,  DEC 31,
                                  2006   2005 (d)
                               --------  --------
 BALANCE SHEET HIGHLIGHTS

 Cash and cash equivalents      $   751   $ 1,605
 Accounts receivable, net         3,907     3,553
 Inventoried costs, net           1,296     1,164
 Property, plant, and           
  equipment, net                  4,403     4,403
 Total debt                       4,635     5,145
 Net debt (b)                     3,884     3,540
 Mandatorily redeemable        
  preferred stock                   350       350
 Shareholders' equity            17,046    16,828
 Total assets                    33,676    34,214

 Net debt to capitalization 
  ratio (c)                          18%       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.
 (d)  Certain prior year amounts have been reclassified to conform to 
      the 2006 presentation.


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


                              SECOND QUARTER       FIRST SIX MONTHS
                            ------------------    ------------------
                              2006    2005 (a)      2006    2005 (a)
                            --------  --------    --------  --------

 Sales and Service
  Revenues
 Information & Services
   Mission Systems          $  1,338  $  1,271    $  2,602  $  2,525
   Information Technology        993       968       1,941     1,847
   Technical Services            300       286         575       560
                            --------  --------    --------  --------
 Total Information &
  Services                     2,631     2,525       5,118     4,932

 Aerospace
   Integrated Systems          1,397     1,391       2,834     2,678
   Space Technology              865       875       1,720     1,738
                            --------  --------    --------  --------
 Total Aerospace               2,262     2,266       4,554     4,416

 Electronics                   1,635     1,769       3,144     3,316
 Ships                         1,437     1,587       2,570     3,101
 Other                                      11                    22
 Intersegment Eliminations      (364)     (351)       (692)     (678)
                            --------  --------    --------  --------

                            $  7,601  $  7,807    $ 14,694  $ 15,109
                            ========  ========    ========  ========

 Operating Margin and
  Net Income
 Information & Services
   Mission Systems          $    132  $     99    $    249  $    192
   Information Technology         86        82         170       158
   Technical Services             16        14          29        26
                            --------  --------    --------  --------
 Total Information &
  Services                       234       195         448       376

 Aerospace
   Integrated Systems            142       117         291       259
   Space Technology               81        74         152       141
                            --------  --------    --------  --------
 Total Aerospace                 223       191         443       400

 Electronics                     181       199         358       361
 Ships                           129       102         197       209
 Other                                      (5)                   (6)
 Intersegment
  Eliminations                   (25)      (18)        (51)      (38)
                            --------  --------    --------  --------

 Total segment
  operating margin (b)           742       664       1,395     1,302

 Reconciliation to
  operating margin
   Unallocated expenses          (46)      (42)        (81)      (69)
   Net pension (expense)
    income (c)                   (12)        2         (22)       (9)
   Reversal of royalty
    income included above         (2)       (3)         (6)       (8)
                            --------  --------    --------  --------

 Operating margin                682       621       1,286     1,216

 Interest income                   3        25          16        39
 Interest expense                (87)      (94)       (177)     (189)
 Other, net                       (9)        7         (10)       89
                            --------  --------    --------  --------

 Income from continuing
  operations before
  income taxes                   589       559       1,115     1,155

 Federal and foreign
  income taxes                   147       190         311       388
                            --------  --------    --------  --------

 Income from continuing
  operations                     442       369         804       767

 Discontinued operations,
  net of tax                     (12)       (2)        (17)        9
                            --------  --------    --------  --------

 Net income                 $    430  $    367    $    787  $    776
                            ========  ========    ========  ========

 Weighted average diluted
  shares outstanding, in
  millions                     350.1     365.2       351.8     365.7

 Diluted Earnings (Loss)
  Per Share
   Continuing operations    $   1.26  $   1.01    $   2.29  $   2.10
   Discontinued
    operations                  (.03)     (.01)       (.05)      .02
                            --------  --------    --------  --------
 Diluted earnings per
  share                     $   1.23  $   1.00    $   2.24  $   2.12
                            ========  ========    ========  ========
 ---------------------------------------------------------------------

 (a)  Certain prior year amounts have been reclassified to conform to
      the 2006 presentation.

 (b)  Management uses segment operating margin as an internal measure of
      financial performance for the individual business segments. This
      measure is not in accordance with accounting principles generally
      accepted in the United States of America (GAAP).

 (c)  Net pension (expense) income reflects pension expense determined
      in accordance with GAAP less the pension expense included in the
      segment cost of sales to the extent that these costs are currently
      recognized under U.S. Government Cost Accounting Standards.


                    NORTHROP GRUMMAN CORPORATION        SCHEDULE 3
                    ADDITIONAL SEGMENT INFORMATION
                           ($ in millions)
                             (unaudited)


                              CONTRACT                    FUNDED
                            ACQUISITIONS(a)              BACKLOG(b)
                 ----------------------------------- -----------------
                   SECOND QUARTER  FIRST SIX MONTHS      June 30,
                 ----------------- ----------------- -----------------
                   2006   2005 (c)   2006   2005 (c)   2006   2005 (c)
                 -------- -------- -------- -------- -------- --------

 Information &
  Services
   Mission
    Systems      $  1,179 $  1,133 $  2,907 $  2,363 $  2,781 $  2,896
   Information
    Technology        926    1,198    2,133    2,159    2,435    2,364
   Technical
    Services          511      175      962      444      763      374
                 -------- -------- -------- -------- -------- --------
 Total Information
  & Services        2,616    2,506    6,002    4,966    5,979    5,634

 Aerospace
   Integrated
    Systems           869      662    3,604    2,587    4,515    4,585
   Space
    Technology        730      737    2,371    1,610    1,650    1,621
                 -------- -------- -------- -------- -------- --------
 Total Aerospace    1,599    1,399    5,975    4,197    6,165    6,206

 Electronics        1,612    1,389    3,458    3,059    6,671    6,528
 Ships              2,740      321    5,794    1,487    9,353    7,551
 Other                          13       (5)      28                33
 Intersegment
  Eliminations       (434)    (260)    (841)    (662)    (619)    (583)
                 -------- -------- -------- -------- -------- --------
 Total           $  8,133 $  5,368 $ 20,383 $ 13,075 $ 27,549 $ 25,369
                 ======== ======== ======== ======== ======== ========


                  TOTAL BACKLOG, June 30, 2006
                 ------------------------------
                                        TOTAL
                  FUNDED   UNFUNDED(d) BACKLOG
                 --------  ----------  --------
 Information &
  Services
   Mission
    Systems      $  2,781   $  7,505   $ 10,286
   Information
    Technology      2,435      2,357      4,792
   Technical
    Services          763        525      1,288
                 --------   --------   --------
 Total Information
  & Services        5,979     10,387     16,366

 Aerospace
   Integrated
    Systems         4,515      6,255     10,770
   Space
    Technology      1,650      8,602     10,252
                 --------   --------   --------
 Total Aerospace    6,165     14,857     21,022

 Electronics        6,671      1,737      8,408
 Ships              9,353      3,604     12,957
 Intersegment
  Eliminations       (619)                 (619)
                 --------   --------   --------
 Total           $ 27,549   $ 30,585   $ 58,134
                 ========   ========   ========

 (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
                  SUMMARY OPERATING RESULTS
           DISCONTINUED OPERATIONS RECLASSIFICATION
               ($ in millions, except per share)
                        (unaudited)

                              2005                            2006
                -----------------------------------------------------
                                                              Three
                                                              Months
                     Three Months Ended              Total    Ended
                 Mar 31   Jun 30   Sep 30   Dec 31   Year     Mar 31
                -----------------------------------------------------
 Sales and
  Service
  Revenues
   As reported  $ 7,453  $ 7,962  $ 7,446  $ 7,860  $30,721   $7,184
   EIT (a)         (151)    (155)    (155)    (193)    (654)     (91)
                -----------------------------------------------------
   Restated
    sales and
    service
    revenues    $ 7,302  $ 7,807  $ 7,291  $ 7,667  $30,067  $ 7,093
                =====================================================

 Segment
  Operating
  Margin (b)
   As reported  $   638  $   659  $   481  $   621  $ 2,399  $   644
   EIT (a)                     5        5        5       15        9
                -----------------------------------------------------
   Restated
    segment
    operating
    margin      $   638  $   664  $   486  $   626  $ 2,414  $   653
                =====================================================
 Income From
  Continuing
  Operations,
  Net of Tax
   As reported  $   398  $   366  $   288  $   331  $ 1,383  $   357
   EIT, net of
    tax (a)                    3        3        3        9        5
                -----------------------------------------------------
   Restated
    income from
    continuing
    operations,
    net of tax  $   398  $   369  $   291  $   334  $ 1,392  $   362
                =====================================================


 Diluted
  Earnings Per
  Share from
  Continuing
  Operations
   As reported  $  1.08  $  1.00  $   .80  $   .92  $  3.81  $  1.02
   EIT, net of
   tax (a)                   .01               .01      .02      .01
                -----------------------------------------------------
   Restated
    diluted
    earnings
    per share
    from
    continuing
    operations  $  1.08  $  1.01  $   .80  $   .93  $  3.83  $  1.03
                =====================================================

 Weighted
  Average
  Diluted
  Shares
  Outstanding,
  in millions     367.0    365.2    362.2    358.1    363.2    350.8

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

 (a)  The EIT adjustment reflects the reclassification of the
      operating results of the Enterprise Information Technology
      business area formerly reported in the Information Technology
      segment. The business was shut down during the second quarter of
      2006 and all prior financial information has been reclassified
      to reflect the business as discontinued operations.

 (b) 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