CHARLOTTESVILLE, Va., Nov. 30, 2004 (PRIMEZONE) -- Northrop Grumman Corporation (NYSE:NOC) has been awarded a $65.3 million performance-based logistics supply requirements contract for support of electronic systems on U.S. Navy ships and submarines.

The five-year firm, fixed-price contract, with award fees based on performance, was awarded to the company's Sperry Marine business unit by Naval Inventory Control Point, Mechanicsburg, Pa. The contract provides one three-year option.

"Performance-based logistics is the Department of Defense's preferred method for buying material support for fleet weapon systems," said Ed Smeriglio, program manager for Sperry Marine's performance-based logistics programs. "It's a relatively new concept and places increased responsibility on military contractors by tying their compensation to the delivery of their products or services."

Under the contract, Sperry Marine will provide worldwide, full life-cycle logistics support for its radar systems (AN/BPS-15J /H and AN/BPS-16) and ring laser gyro inertial navigation systems (AN/WSN-7/7A/ B). The contract includes satisfying fleet demands for repair parts with fully traceable delivery, repairing returned failed assemblies, maintaining system configuration control, managing obsolescence, responding to fleet casualty requisitions, generating engineering change proposals, performing reliability analysis, and managing the wholesale spares inventory. The program also includes a work share arrangement with the Navy's in-house supply depot, Crane Naval Surface Warfare Center, in Crane, Ind.

The contract could be expanded to include support for additional Sperry Marine products, such as scalable integrated bridge systems, guided missile destroyer steering systems, and SPQ-9B radar systems.

"This is the first U.S. Navy performance-based logistics contract created to support multiple programs -- BPS and WSN-7 -- under the same agreement," said Jeff Holloway, Sperry Marine's strategic business unit director for military integrated logistics support. "It's also significant because full life-cycle support is an important growth area for Sperry Marine."

The AN/WSN-7 is a state-of-the-art ring laser gyro inertial navigation system, which is standard equipment on nearly every U.S. Navy surface combatant, including Nimitz-class aircraft carriers, cruisers, guided missile destroyers, large-deck amphibious ships, and attack submarines. The AN/BPS-15H and AN/BPS-16 are integrated radar systems installed on Navy SSN and SSBN submarines.

Sperry Marine, with worldwide headquarters in Charlottesville, Va., and major engineering and support offices in New Malden, UK, and Hamburg, Germany, is part of Northrop Grumman's Electronic Systems sector. Sperry Marine provides smart navigation and ship control solutions for the international marine industry with customer service and support through offices in 16 countries, sales representatives in 47 countries, and authorized service depots in more than 250 locations worldwide.

Headquartered in Baltimore, Md., Northrop Grumman Electronic Systems is a world leader in the design, development and manufacture of defense and commercial electronic systems including airborne radar, navigation systems, electronic countermeasures, precision weapons, airspace management systems, communications systems, space sensors, marine and naval systems, government systems and logistics services.

For commercial sales inquiries, contact Sperry Marine by phone, +1 434 974 2656 or by e-mail, sales_commercial@sperry-marine.com. For military sales inquiries call, +1 434 974 2134 or by e-mail, sales_military@sperry-marine.com. Visit our web site at www.sperry-marine.com .

  CONTACT:   Jim Rhodes 
           Northrop Grumman Electronic Systems
           +1 (757) 451-0602
 
           Angelique Rewers
           Sperry Marine
           +1 (410) 765-7199