SAN DIEGO, June 3, 2009 -- The team led by Northrop Grumman Corporation (NYSE:NOC) submitted its bid today for the U.S. Navy's Consolidated Afloat Networks and Enterprise Services, or CANES. CANES will streamline and update shipboard network systems to improve interoperability and affordability across the fleet.

The U.S. Department of Defense issued a request for proposals April 2 for the program, which is valued at more than $1.5 billion over the next five years. The program is an investment in a modernized command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) architecture that will significantly reduce development, deployment and lifecycle costs.

As its major technology and services partner, Northrop Grumman's Information Systems sector is teamed with IBM to provide commercial industry innovation and best practices that can be integrated into the CANES solution.

The Northrop Grumman-led team also includes key small-business partners Atlas Technologies, Charleston, S.C.; Beatty and Company Computing, Juno Technologies, and Syzygy Technologies, Inc., all based in San Diego; and CenterBeam Inc., San Jose, Calif.

"We are leveraging the strengths of Northrop Grumman by applying the C4ISR capabilities of the company's Information Systems sector, the shipbuilding and installation capabilities of the Shipbuilding sector, the integrated logistics support of our Technical Services sector, and our industry-leading network security capabilities. This enables us to offer a uniquely powerful CANES solution for the Navy," said Linda A. Mills, corporate vice president and president of Northrop Grumman Information Systems sector.

"Amplifying Northrop Grumman's company-wide resources and expertise in platforms, C4ISR, and advanced security techniques, we've forged a formidable team," said Michael Twyman, vice president for Integrated Command and Control Systems at Northrop Grumman. "Our major teammate is an industry leader in networks, computing and commercial best practices in IT service management, and the small and disadvantaged businesses on our team are distinguished by their special skills and track records of innovation."

"IBM and Northrop Grumman have a strong record of success working together to serve the federal government community," said Todd Ramsey, general manager of IBM's US Federal Business. "The CANES project offers IBM and Northrop Grumman an opportunity to provide the Navy with world class IT capabilities based on open standards and COTS, and leading edge shipbuilding and ship-board domain experience."

The goal of CANES is to consolidate and replace numerous legacy systems and deliver an open, common network to every ship, submarine and shore-based command and control center in the Navy. A subprogram of CANES, Afloat Core Services, decouples development of software so that it is modular, reusable and interoperable and can be updated more quickly and frequently.

The CANES program office for the Northrop Grumman team will be located in San Diego.

Northrop Grumman Corporation is a leading global security company whose 120,000 employees provide innovative systems, products, and solutions in aerospace, electronics, information systems, shipbuilding and technical services to government and commercial customers worldwide.

  CONTACT:  Janis Lamar
          Northrop Grumman Information Systems
          (703) 345-7046