HERNDON, Va., Oct. 17, 2001 (PRIMEZONE) -- A team led by Northrop Grumman Corporation (NYSE:NOC) has been selected by the Department of Veterans Affairs to provide information technology (IT) products and services to the department's Austin Automation Center.

The Austin Automation Center Enterprise System (AACES) contract, which contains one base year and nine one-year options, has a potential value of $650 million to Northrop Grumman's Information Technology sector.

"This is a significant contract win for Northrop Grumman," said Jim Perriello, president, Government Solutions, Northrop Grumman Information Technology. "We have supported the Austin Automation Center for the past 10 years, and this new contract will enable us to expand our partnership. We look forward to helping the center grow its business."

The wide-ranging AACES contract includes technical and professional services plus hardware and software products. Specifically, Northrop Grumman will provide on-site support personnel, such as systems programmers and database administrators, and perform maintenance on existing and new equipment. The company will also deliver technology refresh on items ranging from mainframes to PC servers, tape silo subsystems, direct access storage devices and Unix servers.

Since 1996, the Austin Automation Center has operated as a fee-for-service enterprise and competed with other service providers for the business of other government agencies. Northrop Grumman will continue to assist the center in its marketing efforts.

The Austin Automation Center runs more than 100 customer applications providing data for financial management, payroll, human resources, logistics, medical records, eligibility benefits and supply functions. In addition to Veterans Affairs, this work is performed for numerous government agencies including the General Accounting Office, the National Archives and Records Administration, NASA and the Federal Highway Administration of the Department of Transportation.

Northrop Grumman's work on the AACES program will be performed in Austin, Tex. Team members include EMC, Hopkinton, Mass.; KPMG LLP, New York, N.Y.; SAIC, San Diego, Calif.; and Sun Microsystems, Palo Alto, Calif.

Northrop Grumman Information Technology is a premier provider of advanced IT solutions, engineering and business services for government and commercial clients. Headquartered in Herndon, the company's expertise spans such areas as information systems integration; command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR); enterprise hardware and software solutions; training and simulation; base and range support; signals intelligence; space systems; health informatics; and specialized scientific, engineering and technical services.

LEARN MORE ABOUT US: Northrop Grumman news releases, product information, photos and video clips are available on the Internet at: http://www.northropgrumman.com . Information specific to Information Technology is available at: http://www.logicon.com .

  CONTACT:  Northrop Grumman Information Technology, Herndon
          Gus Gulmert
          (703) 713-4620