WASHINGTON, D.C., Oct. 8, 2003 -- In a move that aligns a successful acquisition strategy with increasing customer demand for mission-ready unmanned aerial vehicle (UAV) systems, Northrop Grumman Corporation (NYSE:NOC) today announced that its Advanced Tactical C4I (ATC4I) organization, which produces the U.S. Army's RQ-5 Hunter UAV, will become a part of the company's Unmanned Systems unit in San Diego.

ATC4I is currently part of Northrop Grumman's Mission Systems sector. Unmanned Systems is part of the Integrated Systems sector.

The realignment leverages UAV technologies acquired from the heritage TRW organization (ATC4I) in 2002 and Ryan Aeronautical (Unmanned Systems) in 1999, while sharing robust UAV development processes and systems know-how more cost effectively among all programs. It also creates a standalone organization dedicated to developing affordable, optimized UAV solutions for each customer. The consolidation takes effect Jan. 1, 2004.

"The formal consolidation of ATC4I and Unmanned Systems reinforces the technical synergism that has existed for years between these highly skilled UAV engineering organizations," said Scott J. Seymour, president of Integrated Systems. "The recent selection of the RQ-8B Fire Scout UAV as the basis for the Army's Future Combat System Class IV Unmanned Aerial System (FCS UAS) requirement, for example, stemmed largely from this successful collaboration. By joining our collective UAV engineering skills and systems know-how under one organizational roof, we will continue to develop and deliver the UAV systems that war fighters need to meet and defeat an ever-evolving enemy."

ATC4I employees supporting Hunter, MAV/OAV and FCS UAS programs and facilities in Sierra Vista, Ariz., and San Diego will transfer to Integrated Systems.

Unmanned Systems produces the U.S. Air Force's RQ-4 Global Hawk unmanned aerial reconnaissance system, the U.S. Navy's RQ-8 Fire Scout vertical takeoff and landing tactical UAV and aerial targets programs for the Air Force, Navy and international customers. It also leads the company's development efforts for the U.S. Navy Broad Area Maritime Surveillance program, the European Euro Hawk in development with EADS, DARPA's Joint Unmanned Combat Air System, DARPA's Unmanned Combat Armed Rotorcraft and the United Kingdom Ministry of Defence's Watchkeeper program. In addition, the company is developing the Class IV unmanned aerial system solution for the Army's Future Combat System based on Fire Scout.

Based in Reston, Va., Northrop Grumman Mission Systems is a global integrator of complex, mission-enabling systems and services for defense, intelligence and civil government markets. The sector's technology leadership and expertise spans areas such as strategic systems, including ICBMs; missile defense; intelligence, surveillance, and reconnaissance; command and control; technical services; and training.

Northrop Grumman Integrated Systems, headquartered in El Segundo, Calif., is a premier aerospace and defense systems integration enterprise. One of Northrop Grumman's seven operating sectors, it designs, develops, produces and supports network-enabled integrated systems and subsystems for government and civil customers worldwide. Integrated Systems delivers best-value solutions, products and services that support military and homeland security missions in the areas of intelligence, surveillance and reconnaissance; battle management command and control; and integrated strike warfare.

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  CONTACT:  Integrated Systems:  Cynthia Curiel
                               (858) 405-7989 (cell)
                               (858) 618-4355 (office)

             Mission Systems:  Janis Lamar
                               (703) 345-7046