SAN DIEGO, Feb. 13, 2012 -- The U.S. Navy has awarded Northrop Grumman Corporation (NYSE:NOC) $37 million for the Consolidated Afloat Networks and Enterprise Services (CANES) production and limited deployment phase. The contract includes options that would raise the cumulative value of the contract to $638 million, if all options are exercised. CANES will consolidate and modernize shipboard network systems to improve operational effectiveness and affordability across the fleet.

"Northrop Grumman is honored to continue our collaboration with the Navy to deploy CANES," said Wes Bush, chairman, chief executive officer and president, Northrop Grumman. "This selection recognizes Northrop Grumman's performance to date and our ongoing commitment to innovative solutions focused on affordability and technical excellence."

Consolidation through CANES will eliminate many legacy, standalone networks and provide a common computing environment infrastructure for dozens of command, control, intelligence and logistics applications.

"CANES will enable critical C4I capabilities with integrated, flexible cybersecurity capacity to quickly address evolving threats and missions using our adaptable information technology platform," said Linda Mills, corporate vice president and president of Northrop Grumman Information Systems.

Under the modification to the CANES contract awarded in March 2010, Northrop Grumman will produce the initial CANES shipsets for installation. CANES is planned to deploy on a fleet destroyer in late fiscal year 2012.

Northrop Grumman uses the Modular Open Systems Approach-Competitive TM process for its CANES solution to achieve the lifecycle benefits of open-systems architecture and commercial off-the-shelf components and software. The strategic business and engineering process ensures vendor-neutral, enduring solutions that improve interoperability and lower the total cost of ownership.

CANES will provide an adaptable and responsive information technology platform to rapidly meet changing warfighter needs. The strategy strengthens the network's infrastructure, improves security, reduces the existing hardware footprint and decreases total ownership costs. In addition to providing greater capability, CANES will allow fleet end-users to benefit from reduced operations and sustainment workloads as a result of common equipment, training and logistics.

Northrop Grumman is a leading global security company providing innovative systems, products and solutions in aerospace, electronics, information systems, and technical services to government and commercial customers worldwide. Please visit for more information.

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