PASCAGOULA, Miss., June 14, 2001 (PRIMEZONE) -- The U.S. Navy announced today a $124 million contract modification for continuation of design and test planning of its 21st century DD 21 destroyer program. The contract was awarded to the DD 21 Alliance which includes Ingalls Shipbuilding here and Bath Iron Works of Bath, Me.

Ingalls Shipbuilding, a Northrop Grumman (NYSE:NOC) company, is leading the DD 21 Gold Team, which includes the Raytheon Company and The Boeing Company, and will receive $52 million for the continuation of its work associated with Phase II of this program.

Work involved by the Gold Team during the continuation of Phase II includes the development and maturity of critical technologies such as the vessel's integrated power system, the advanced gun and dual-band radar suite.

"This continued funding reflects the Navy's commitment to building and maintaining its surface combatant fleet, and to the 'leap ahead' technologies exhibited in the DD 21 design," said Jerry St. PĂŠ, chief operating officer, Northrop Grumman Ship Systems.

Northrop Grumman's Ship Systems, headquartered in Pascagoula, Miss., includes Ingalls and the Ship Systems Full Service Center, both located in Pascagoula, as well as Litton Avondale Industries, located in New Orleans, La. Ship Systems, which currently employs more than 17,000 shipbuilding professionals, primarily in Mississippi and Louisiana, is one of the nation's leading full service systems companies for the design, engineering, construction, and life cycle support of major surface ships for the U.S. Navy, U.S. Coast Guard and international navies, and for commercial vessels of all types. Ship Systems has a firm business backlog exceeding $5.6 billion, in a variety of naval and commercial shipbuilding programs.

Northrop Grumman Corporation is a $15 billion, global aerospace and defense company with its worldwide headquarters in Los Angeles. Northrop Grumman provides technologically advanced, innovative products, services and solutions in defense and commercial electronics, systems integration, information technology and non-nuclear shipbuilding and systems. With 80,000 employees and operations in 44 states and 25 countries, Northrop Grumman serves U.S. and international military, government and commercial customers.

Members of the news media may receive our releases via e-mail by registering at: http://www.northgrum.com/cgi-bin/regist_form.cgi

LEARN MORE ABOUT US: Northrop Grumman news releases, product information, photos and video clips are available on the Internet at: http://www.northropgrumman.com

  CONTACT: Jim McIngvale
         (228) 935-3971