HERNDON, Va., Feb. 18, 2003 (PRIMEZONE) -- The Internal Revenue Service (IRS) will continue to benefit from Northrop Grumman Corporation's (NYSE:NOC) efficient processing of tax forms through a contract for the Service Center Recognition Image Processing System (SCRIPS). Under the terms of this indefinite delivery/indefinite quantity (ID/IQ) contract from the IRS, Northrop Grumman's Information Technology (IT) sector will provide IT maintenance support for SCRIPS.

The ID/IQ contract has an initial base period of nine months and nine one-year options, with a total value of $118 million to Northrop Grumman IT.

In addition to maintenance support, Northrop Grumman IT will provide annual program changes based on legislative requirement changes to the tax code, make technology enhancements and refreshment and implement new applications as desired by the IRS to improve its business mission in the submissions processing area.

"With this contract, Northrop Grumman IT remains at the leading edge of tax submissions processing and document management solutions," said Jim Perriello, president, Government Solutions, Northrop Grumman IT. "We are proud to continue to support the IRS on SCRIPS III. SCRIPS has proven itself to be a good information investment for the IRS."

Northrop Grumman IT was awarded SCRIPS I in 1993 and SCRIPS II in 2001. The company has processed more than 850 million forms to date.

SCRIPS is a data capture, management and storage system that processes two types of forms for the IRS, the Information Returns Processing form and Federal Tax Deposit coupons.

Northrop Grumman IT teammates for SCRIPS III include NCR, Rockville, Md., and Network Computing Systems, Fairfax, Va.

Work on the program will be performed primarily at the Northrop Grumman IT site in Reston, Va., and four IRS locations, Austin, Texas; Cincinnati, Ohio, Kansas City, Mo.; Memphis, Tenn.; and Ogden, Utah.

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

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  CONTACT:  Juli Ballesteros
          Northrop Grumman Information Technology 
          (703) 713-4675