WOODLAND HILLS, Calif., Aug. 27, 2001 (PRIMEZONE) -- Northrop Grumman Corporation's (NYSE:NOC) Electronic Systems sector today announced plans to consolidate most of its Southern California Navigation Systems Division operations into company-owned facilities in Woodland Hills.

The Navigation Systems Division includes many of the advanced electronics businesses acquired by Northrop Grumman in April 2001 when it purchased Litton Industries Inc., including facilities in San Diego, Canada, Italy and Germany.

By July 2002, the Navigation Systems Division will be headquartered and operate from a centralized Woodland Hills campus located at 21240 Burbank Blvd., and will maintain its San Diego and international facilities. Three former Litton facilities located in Agoura Hills, Goleta and Northridge will be consolidated, with all of the operations and many of the employees transferring to the Woodland Hills campus. The four facilities currently employ approximately 2,400 people.

The division consolidation effort will result in a workforce reduction of approximately 500 employees, representing about 4.5 percent of Northrop Grumman's total workforce of approximately 11,000 in the State of California. The consolidation will take place in phases, beginning in September through July 2002.

"By consolidating redundant functions and reducing office space, we are positioning ourselves to compete more effectively in the navigation and guidance business," said William J. Allison, vice president and general manager of Northrop Grumman's Navigation Systems Division. "Although our decision to reduce our workforce was difficult, centralizing at the Woodland Hills campus will maximize our utilization of our technical capabilities to create next-generation technologies."

Northrop Grumman currently has job openings at other locations throughout Southern California. The company's internal posting process will make all positions available to Navigation Systems Division employees impacted by this reduction.

Mr. Allison said the company will also provide redeployment and outplacement services and a severance benefit to all affected employees.

The Woodland Hills complex is currently home to the former Litton aero products and guidance and control systems business units. Products include navigation and guidance systems for commercial, general aviation and military transport aircraft, plus inertial navigation and guidance systems, inertial measurement systems, and attitude and heading reference systems for all classes of military vehicles and weapons. Activities of the former Litton integrated systems business unit in Northridge include integrated avionics, airborne computers and displays, and aircraft transponders.

Work at the Agoura facility involves the manufacture of command, control and communications systems, while activities at Goleta encompass the design, development and manufacture of strategic missile guidance systems and satellite electronics.

Headquartered in Baltimore, Md., Northrop Grumman's Electronic Systems sector is a world leader in the design, development and manufacture of defense electronics and systems including airborne radar systems, navigation systems, electronic warfare systems, precision weapons, air traffic control systems, air defense systems, communications systems, space systems, marine systems, oceanic and naval systems, logistics systems, and automation and information systems.

Northrop Grumman Corporation is a $15 billion, global aerospace and defense company with its worldwide headquarters in Los Angeles. Northrop Grumman provides technologically advanced, innovative products, services and solutions in defense and commercial electronics, systems integration, information technology and non-nuclear shipbuilding and systems. With 80,000 employees and operations in 44 states and 25 countries, Northrop Grumman serves U.S. and international military, government and commercial customers.

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

  CONTACT: Northrop Grumman Corporation
         Randy Belote
         (703) 875-8525