ROLLING MEADOWS, Ill., Aug. 9, 2002 -- Northrop Grumman Corporation's (NYSE:NOC) Electronic Systems sector has been awarded a contract to equip U.S. Air Force Air Mobility Command C-130 aircraft with infrared countermeasures systems designed to protect such aircraft from the threat of heat-seeking missiles.

The $12.9 million contract is for the engineering and manufacturing development of Northrop Grumman's Large Aircraft Infrared Countermeasures (LAIRCM) system for eventual installation on the C-130 aircraft. The two-year contract will include production options for the installation of the system onto seven aircraft.

This latest modification follows a $66 million contract the Air Force awarded Northrop Grumman in September 2001 for the engineering and manufacturing development phase of a laser-based IRCM system for the C-17 and C-130 transport aircraft. There are production options for the initial contract that equal approximately $105 million.

"Work on the LAIRCM program for the Air Force has been progressing well and is on schedule," said Bob Del Boca, director, IRCM and Laser Systems for Northrop Grumman's Defensive Systems Division. "The addition of LAIRCM will provide these C-130 aircraft with the ability to rapidly and accurately detect and defeat hostile infrared missiles, including increasingly common surface-to-air missiles."

LAIRCM is a laser-based variation of Northrop Grumman's lamp-based Directional Infrared Countermeasures (DIRCM) system, Nemesis, which is currently in use by the military in both the United States and the United Kingdom.

Additionally, installation of Northrop Grumman DIRCM systems is progressing on U.S. Special Operations Command (USSOCOM) aircraft. During the past year, DIRCM systems have been installed on four "kit-proofed" aircraft (MC-130H, MC-130E, AC-130H, and AC-130U), and ground and flight testing have been completed on the range at Eglin Air Force Base, Fla. In 1999, USSOCOM awarded Northrop Grumman a contract modification to produce and install DIRCM systems on 59 Special Operations C-130 aircraft.

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

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  CONTACT:  Katie Lamb
          Northrop Grumman Electronic Systems 
          (847) 259-9600, ext. 3542