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Northrop Grumman Receives $1.9 Billion Contract from U.S. Navy for Four DDG 51-Class Destroyers

PASCAGOULA, Miss., Sept. 16, 2002 (PRIMEZONE) -- The U.S. Navy today awarded Northrop Grumman Corporation (NYSE:NOC) a contract valued at $1.9 billion to build four additional DDG 51-class Aegis-guided missile destroyers.

The contract, awarded to Northrop Grumman's Ship Systems sector in Pascagoula, includes the immediate award of four ships. The contract is part of a multiyear procurement plan under which the Navy is awarding multiple ships under a single contract.

"This contract is a reflection of the professionalism, workmanship, quality consciousness and dedication demonstrated in the Aegis destroyer program," said Dr. Philip A. Dur, Northrop Grumman corporate vice president and president of the company's Ship Systems sector. "We have established an outstanding relationship with our customer while building these ships and we are determined to continue receiving excellent ratings in the Navy's assessments of our performance. With this contract, our business base remains solid through 2010."

Today's announcement brings the total ships awarded in this program to 60. Based on this four-ship award to Northrop Grumman Ship Systems, the company will have received contracts for 28 Aegis destroyers, with 17 of these ships already delivered.

Under this multiyear contract, Northrop Grumman Ship Systems and General Dynamics' Bath Iron Works shipyard will build one more ship each in fiscal years 2002 through 2005. Bath Iron Works will also build an additional option ship in fiscal 2004 and 2005. This arrangement was part of an agreement in June among the Navy and the shipyards that transferred the construction of four LPD 17 amphibious assault ships from Bath Iron Works to Northrop Grumman Ship Systems.

"The Aegis program has been the focus of the Ingalls shipyard for 25 years as 19 Aegis cruisers were delivered through 1994," said Dur.

The Navy's Aegis fleet provides primary protection for the Navy's battle forces. Aegis destroyers, designed to match maximum survivability with potent offensive capability, are 509.5 feet long, with a beam of 66.5 feet. Four gas turbine engines power the 9,300-ton ships to speeds in excess of 30 knots. The destroyers' Aegis Combat System is the world's foremost naval weapons system.

Northrop Grumman's Ship Systems sector includes primary operations in Pascagoula and Gulfport, Miss.; New Orleans and Tallulah, La.; and in a network of fleet support offices in the U.S. and Japan. The sector, 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.

Northrop Grumman Corporation is an $18 billion, global 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 nuclear and non-nuclear shipbuilding and systems. With nearly 100,000 employees and operations in 44 states and 25 countries, Northrop Grumman serves U.S. and international military, government and commercial customers.

LEARN MORE ABOUT US: Northrop Grumman news releases, product information, photos and video clips are available on the Internet at: Information specific to Ship Systems is available at:

CONTACT: Den Knecht
Northrop Grumman Ship Systems
(228) 935-1493 or
(228) 327-0787

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