BETHPAGE, N.Y., June 15, 2009 -- After successfully completing a Milestone C review, Northrop Grumman Corporation's (NYSE:NOC) E-2D Advanced Hawkeye program has received a fixed-price, incentive fee contract award from the U.S. Navy valued at $432 million.

The contract, which includes two Low-Rate Initial Production (LRIP) Lot 1 aircraft and an Advanced Acquisition Contract for two LRIP Lot 2 aircraft, is a follow-on to the company's initial, $1.9 billion E-2D Advanced Hawkeye System Development & Design contract, awarded in August 2003. In addition to the four LRIP aircraft, the company will provide associated engineering and testing.

"This contract award confirms that the E-2D Advanced Hawkeye design is stable, and we have the critical manufacturing processes in place to produce and deliver a high-quality, reliable weapons system to the warfighter," said Jim Culmo, vice president of Airborne Early Warning and Battle Management Command and Control Programs for Northrop Grumman Aerospace Systems sector. "The first three pilot production E-2D aircraft are moving through the production process at our manufacturing facility in St. Augustine, Fla., ahead of schedule, and we are on track to deliver the first pilot production aircraft in 2010."

"For over 40 years, the E-2 has been the lynchpin of airborne early warning and command and control," said U.S. Navy Capt Shane Gahagan, Hawkeye Greyhound program manager. "With the support of our industry partner, and all of the companies that comprise Team Hawkeye, we are ensuring that the E-2 will remain that lynchpin well into late in this century."

"Over the past year, the E-2D Advanced Hawkeye program has achieved many significant program milestones, including a successful Production Readiness Review in August 2008 and a successful Operational Assessment in October 2008. This is a testament to the commitment of the Advanced Hawkeye's 280-member, world-class supplier team," noted Culmo.

The E-2D Advanced Hawkeye, with its newly developed, more powerful AN/APY-9 Electronic Scan Array (ESA) radar, provides the warfighter with the expanded battlespace and situational awareness required for today's and tomorrow's mission.

Northrop Grumman Corporation is a leading global security company whose 120,000 employees provide innovative systems, products, and solutions in aerospace, electronics, information systems, shipbuilding and technical services to government and commercial customers worldwide.

  CONTACT:  Kirsti Dunn
          Northrop Grumman Aerospace Systems
          (301) 373-2388, x2722