LE BOURGET, France, June 20, 2007 (PRIME NEWSWIRE) -- Officials of Northrop Grumman Corporation (NYSE:NOC) and Terma have signed a Memorandum of Agreement (MoA) focused on interrelated electronic warfare (EW) business initiatives. The agreement establishes a framework for cooperation between the companies and allows both firms to engage in other agreements.

The MoA encompasses the portfolio of Terma and Northrop Grumman airborne EW products. These include Terma's AN/ALQ-213(V) Electronic Warfare Management System (EWMS), F-16 Pylon Internal Dispenser System (PIDS), F-16 pylons and Modular Countermeasures Pod (MCP). Additional products include Apache Modular Aircraft Survivability pods, AMASE, and the recently developed CHASE pods that integrate Northrop Grumman's Directional Infrared Countermeasure (DIRCM) systems into a modular defensive systems solution for CH-47 Chinooks.

Northrop Grumman's EW product line includes both infrared (IR) and radio frequency (RF) systems, such as the ALQ-131, ALQ-162, AAR-54, helicopter RF EW and integrated EW systems, AAQ-24 (V) NEMESIS and laser infrared countermeasures systems. There are provisions to extend the agreement to new product areas as well.

"At Terma, we are very pleased indeed to have made this agreement with Northrop Grumman Corporation," said Steen Lynenskjold, senior vice president for Airborne Systems. "Terma and Northrop Grumman have worked successfully together on a number of EW projects, and we see this MoA as a natural continuation and a reinforcement of the foundation made in the past."

"This agreement will build on the individual strengths of our two world-class organizations," said John Johnson, vice president and general manager of Northrop Grumman's Aerospace Systems Division. "We look forward to working closely with Terma to help meet our customers' electronic warfare systems and service needs going forward."

"The MoA was established as a means of addressing business arrangements for ongoing programs and business pursuits on a global scale," added Bob DelBoca, sector vice president and general manager of Northrop Grumman's Defensive Systems Division. "Our company's infrared countermeasures and electronic warfare technologies, systems and capabilities complement nicely those of Terma."

Terma, a leading Denmark based aerospace and defense company, is a proven developer of electronic warfare systems, reconnaissance systems, and aeronautic structures for high-performance military aircraft. These systems include the ALQ-213 automated threat aversion control system which is deployed on over 1,600 F-16s and other aircraft, worldwide.

The business activities of Terma include products and systems for a number of civil and military applications including radar systems, command and control systems, systems for public safety & emergency and applications & services for space purposes.

Terma maintains subsidiary facilities and operations in a number of European countries, Singapore and in the U.S., including the wholly owned subsidiary, Terma North America, Inc. The company employs approximately 1,000 people worldwide, and realized 2006 revenues of approximately US$175M.

Northrop Grumman Corporation is a $30 billion global defense and technology company whose 120,000 employees provide innovative systems, products, and solutions in information and services, electronics, aerospace and shipbuilding to government and commercial customers worldwide.

  CONTACT: Katie Lamb-Heinz
         Northrop Grumman Electronic Systems
         Paris Air Show
         + 1 (847) 815-0755
         katie.lamb@ngc.com

         Alleace Gibbs
         Northrop Grumman Electronic Systems
         +1 (410) 765-1294 
         alleace.gibbs@ngc.com 

         Kasper Rasmussen
         Terma A/S
         +4520226091
         kar@terma.com