PASCAGOULA, Miss., Aug. 19, 2002 (PRIMEZONE) -- Northrop Grumman Corporation (NYSE:NOC) today announced that it has reached an agreement to sell all structures and material associated with a cruise ship program at the company's Ship Systems sector here to Norwegian Cruise Line.
Under the agreement, Norwegian Cruise Line will take possession by Sept. 30 of the nearly half-complete first ship and all associated equipment and materials, as well as material acquired by Northrop Grumman for a planned second ship. Approximately 350 Ship Systems employees are currently preparing the cruise ship for launch and towing.
The company does not expect the sale to impact previously announced financial guidance.
In May, the U.S. Maritime Administration (MARAD) conducted an auction for the cruise ship and associated materials. Subsequently, MARAD directed Northrop Grumman Ship Systems to proceed unilaterally with the disposition of the vessel.
Northrop Grumman had previously been under contract to American Classic Voyages Company (Nasdaq:AMCVQ) to construct two 1,900-passenger vessels. In October 2001, Northrop Grumman halted work after AMCV filed for Chapter 11 bankruptcy protection.
Northrop Grumman Ship Systems, headquartered in Pascagoula, Miss., includes facilities in Pascagoula and Gulfport, Miss., as well as New Orleans and Tallulah, La. The sector, which currently employs more than 17,000 shipbuilding professionals, primarily in Mississippi and Louisiana, is one of the nation's leading full service systems companies for the design, engineering, construction and life cycle support of major surface ships for the U.S. Navy, U.S. Coast Guard and international navies, and for commercial vessels of all types.
Note: Certain statements and assumptions in this release contain or are based on "forward-looking" information (that Northrop Grumman believes to be within the definition in the Private Securities Litigation Reform Act of 1995) and involve risks and uncertainties. Such "forward-looking" information includes, among other things, the statements above as to the impact of the proposed TRW Inc. acquisition on revenues and earnings. Such statements are subject to numerous assumptions and uncertainties, many of which are outside Northrop Grumman's control. These include Northrop Grumman's ability to successfully integrate its acquisitions, assumptions with respect to future revenues, expected program performance and cash flows, the outcome of contingencies including litigation, environmental remediation, divestitures of businesses, and anticipated costs of capital investments. Northrop Grumman's operations are subject to various additional risks and uncertainties resulting from its position as a supplier, either directly or as subcontractor or team member, to the U.S. Government and its agencies as well as to foreign governments and agencies; actual outcomes are dependent upon factors, including, without limitation, Northrop Grumman's successful performance of internal plans; government customers' budgetary restraints; customer changes in short-range and long-range plans; domestic and international competition in both the defense and commercial areas; product performance; continued development and acceptance of new products; performance issues with key suppliers and subcontractors; government import and export policies; acquisition or termination of government contracts; the outcome of political and legal processes; legal, financial, and governmental risks related to international transactions and global needs for military aircraft, military and civilian electronic systems and support, information technology; naval vessels, space systems and related technologies, as well as other economic, political and technological risks and uncertainties and other risk factors set out in Northrop Grumman's filings from time to time with the Securities and Exchange Commission, including, without limitation, Northrop Grumman reports on Form 10-K and Form 10-Q.
Northrop Grumman Corporation filed a registration statement on Form S-4 (File No. 333-83672) with the Securities and Exchange Commission on March 4, 2002 that has been amended to include a joint proxy statement/prospectus relating to the proposed merger of Northrop Grumman and TRW Inc. The directors, certain executive officers and other employees and representatives of Northrop Grumman and TRW Inc. may be deemed to be participants in the solicitation of proxies for the shareholders meeting relating to the proposed merger. The joint proxy statement/prospectus contains important information regarding such potential participants and other important matters which should be read by Northrop Grumman and TRW shareholders before making any decisions regarding the merger. Copies of joint proxy statement/prospectus, and any amendments or supplements thereto, may be obtained without charge at the SEC's website at www.sec.gov as they become available.
CONTACT: Den Knecht Northrop Grumman Ship Systems (228) 935-1493 Susan Robison Norwegian Cruise Line (305) 436-4762