MELBOURNE, Fla., May 14, 2003 (PRIMEZONE) -- The Northrop Grumman Corporation (NYSE:NOC), Boeing (NYSE:BA) and Raytheon (NYSE:RTN) Multi-sensor Command and Control Aircraft (MC2A) team has received a pre-system development and demonstration contract, with a total value of $215 million, for Weapon System Integration (WSI) of the U.S. Air Force's new E-10A aircraft.

"The next generation of Air Force airborne ground surveillance and battle management command and control capability is underway with the award of this contract," said Alan Doshier, sector vice president for Northrop Grumman Integrated Systems, Airborne Ground Surveillance and Battle Management Systems business area. "All three members of our team bring strong legacies that provide the Air Force with the best value option for the MC2A program. With the system integration expertise Northrop Grumman has in programs such as Joint STARS combined with airframe excellence from Boeing and radar integration proficiency from Raytheon, the E-10A will bring a new level of ISR capability to the warfighter."

Increment 1 of the Air Force's evolutionary acquisition program for the E-10A provides for a cruise missile defense and advanced airborne ground surveillance and targeting capability. The E-10A will include the Northrop Grumman/Raytheon Multi-Platform Radar Technology Insertion Program (MP-RTIP) radar and an advanced Battle Management Command and Control (BMC2) subsystem integrated on a Boeing 767-400ER aircraft. The BMC2 subsystem will be separately competed later this year.

The three companies announced a unique teaming agreement earlier this week that capitalizes on their expertise in legacy systems used by the Air Force today.

Under the agreement, Northrop Grumman is responsible for overall program management and system engineering, mission system design, airframe modification, system integration and operational flight-testing.

Boeing will perform major structural modification design, air vehicle analysis and performance assessments and airworthiness testing. Boeing will also produce one 767-400ER airframe for the E-10A test bed under a separate contract with the government.

Raytheon's primary responsibilities include radar and radome installation, support to system engineering, system integration and test for the cruise missile defense functionality.

Integrated Systems, one of Northrop Grumman's seven sectors, is a premier aerospace and defense systems integration enterprise. Headquartered in El Segundo, Calif., the organization designs, develops, produces and supports integrated systems, platforms and subsystems, and provides mission support services for U.S. government, civil and international customers. Integrated Systems' products and services meet military and homeland security requirements that support critical intelligence, surveillance and reconnaissance; battle management command and control; precision strike; and readiness and support missions from sea to space.

A unit of The Boeing Company, Boeing Integrated Defense Systems is one of the world's largest space and defense businesses. Headquartered in St. Louis, Boeing Integrated Defense Systems is a $25 billion business. It provides systems solutions to its global military, government and commercial customers and is the world's largest military aircraft manufacturer.

Raytheon Company, with 2002 sales of $16.8 billion, is an industry leader in defense, government and commercial electronics, space, information technology, technical services, and business and special mission aircraft. With headquarters in Lexington, Mass., Raytheon employs more than 76,000 people worldwide.

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Company Media Contacts:

Jim Stratford (Northrop Grumman)
Office:  321-726-7526
Cell: 321-626-5201

Dave Sloan (Boeing)
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Cell:  206-280-6649

Pennington Way (Raytheon)
Office:  310-647-9067
Cell:  310-200-3911