CHARLOTTESVILLE, Va. - Sept. 27, 2005 - Northrop Grumman Corporation (NYSE: NOC) has been awarded a contract from the Brazilian Navy to upgrade the primary navigation systems on its combat ships with new-generation state-of-the-art inertial navigation systems.

The inertial-navigation-system equipment will be supplied by Northrop Grumman's Sperry Marine business unit. The system, based on Sperry Marine's ring-laser gyro technology, is designed to provide high-accuracy position data and precise attitude, velocity and heading inputs for the ship's navigation and fire-control systems.

The initial $2.1 million firm fixed price contract is the first phase of a multi-annual acquisition program to replace the installed Sperry Marine MK29 military gyrocompass systems.

For Phase I, Sperry Marine will supply eight MK39 ring-laser gyro inertial navigation systems with supporting interfaces, accessories and spares. Installations are expected to begin in 2006.

"Sperry Marine's MK39 inertial navigation system provides the Brazilian Navy with the best-value solution for their inertial-navigation-system requirements. It gives the Brazilian Navy a start-of-the-art, high-performance, rugged primary navigation system for their combatant vessels," said Victor M. Cruz, senior manager of international defense for Sperry Marine. "With the signing of this contract, Sperry Marine continues to build on a strong customer relationship with the Brazilian Navy dating back more than 30 years. We are honored to be chosen by the Brazilian Navy, and we look forward to continuing to build on our mutually beneficial relationship in the future."

Sperry Marine is a world leader in ring-laser gyro technology, having supplied more than 80 percent of the ring-laser gyro systems at sea today. The MK39 system has been specified by more than 28 international navies for a variety of ship platforms.

Sperry Marine, with worldwide headquarters in Charlottesville, Va., and major engineering and support offices in New Malden, United Kingdom, 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.

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          Debbi McCallam
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