BETHPAGE, N.Y., Sept. 29, 2008 -- The U.S. Navy has ordered a fourth lot of Northrop Grumman Corporation (NYSE:NOC) Improved Capability (ICAP) III airborne electronic attack systems for its fleet of EA-6B Prowlers under a firm, fixed-price, 31-month contract potentially valued at more than $125 million. This order is for nine complete systems, plus associated parts and spares. The first kit will be delivered in the third quarter of 2010.

To date, Northrop Grumman has delivered two lots of kits to modify the Navy's Prowlers with the new ICAP III system. Northrop Grumman is currently on contract to build and deliver the third lot of seven kits plus associated parts and spares. The Lot 3 and Lot 4 kits will outfit U. S. Marine Corps Prowlers based at Marine Corps Air Station Cherry Point, North Carolina.

"Everything I'm hearing from the Fleet tells me that the ICAP III system has been hugely successful in supporting combat forces in Afghanistan and Iraq, and its operators are greatly expanding the definition of airborne electronic attack with this new tool," said Patricia McMahon, vice president and the Information Operations and Electronic Attack Integrated Product Team leader for Northrop Grumman. "With these updated Prowlers headed to the Marine Corps, I feel even more confident that Northrop Grumman's capabilities and technology roadmap for supporting the sea, air and ground forces continue to set the standard that define electronic attack and enables us to maintain our leadership in this important mission area."

Northrop Grumman, the EA-6B Prowler ICAP III prime contractor, will perform services in Bethpage. The company also manufactures the ICAP III ALQ-218 receiver subsystem. Major subcontractors include: BAE SYSTEMS, Nashua, N.H. and Times Microwave, Wallingford, Conn.

The new ALQ-218 receiver is the heart of the ICAP III Prowler, as are the sophisticated algorithms that allow selective-reactive jamming and precision threat geolocation capabilities. ICAP III also has the new Multifunction Information Distribution System (MIDS). MIDS, which features the U.S. military's primary data-link system, LINK 16, will enable these ICAP III Prowlers to become key nodes in the Marine Corps Marine Air Ground Task Force warfighting architecture.

ICAP III is also the basis for the system Northrop Grumman is producing for the EA-18G Growler, which will replace the U.S. Navy's Prowlers beginning next year. Northrop Grumman is now building upon the ICAP III technology to develop future airborne electronic attack systems.

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

  CONTACT:  John A. Vosilla
          Northrop Grumman Integrated Systems
          (516) 575-5119