BALTIMORE, Feb. 25, 2004 (PRIMEZONE) -- Northrop Grumman Corporation (NYSE:NOC) has teamed with Siemens Dematic Postal Automation L.P. to compete for the United States Postal Service's Flats Sequencing System/Delivery Point Packaging (FSS/DPP) program.

FSS/DPP continues the Postal Service's letter and flat-mail automation program to provide the next generation of postal automation that will sort and merge letter and flat mail in a series of delivery point, walk-sequenced mail bundles. Contracts will be awarded in several phases over the next four years: design and simulation; prototype development and in-plant test; field test; and system production, should the Postal Service decide to install these new technologies.

Northrop Grumman and Siemens Dematic are teamed for all phases of the program.

"As one of the world's leaders in providing flats sortation solutions, Northrop Grumman has been working with the Postal Service for more than 12 years to help build the Postal Service's automation infrastructure for flats sorting," said Gabe DiFurio, Northrop Grumman's director of Postal Automation.

"Siemens Dematic's postal technology has played a key role in the development of the automation for the Postal Service since the early 1980s, and we look forward to working with Northrop Grumman to help equip the U.S. Postal Service for this new era in automated mail processing," said Wolfgang Schwarz, senior vice president of Siemens Dematic.

Northrop Grumman's Electronic Systems sector will be prime contractor for the FSS portion of the program, and Siemens will serve as prime contractor for the DPP portion of the program. Northrop Grumman will provide systems engineering, as well as flats processing technology. Siemens will also provide systems engineering in addition to letter processing and Optical Character Recognition technology.

The Postal Automation business unit is part of the Government Systems Division of Northrop Grumman's Electronic Systems sector. Headquartered in Baltimore, the sector is a world leader in the integration, design, development and manufacture of defense electronics and systems including airborne radar, navigation systems, electronic countermeasures, precision weapons, airspace management systems, communications systems, space systems, marine and naval systems, government systems and logistics services.

Siemens Dematic Postal Automation is a subsidiary of Siemens Corporation. The company designs and manufactures mail sorting, image recognition, and integrated material handling systems for the postal industry. Siemens Dematic Postal Automation and its global affiliate, Siemens Dematic AG, supply a wide range of solutions, from individual products and systems to complete turnkey facilities as a general contractor. In addition to the Postal Automation division, Siemens Dematic includes three other lines of businesses: Distribution & Industry Logistics, Airport Logistics, and Electronic Assembly Systems. The company, with some 10,000 employees worldwide, has a business volume of around $3.1 billion. More information on Siemens Dematic may be found at www.siemens-dematic.com .

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  CONTACT:  Debbi McCallam
          Northrop Grumman Electronic Systems
          (410) 765-1521

          Gary Jensen
          Siemens Dematic Postal Automation L.P. 
          (817) 436-7447