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U.S. Navy Awards Northrop Grumman $281 Million Contract for Defense Integrated Military Human Resource System

HERNDON, Va., Sept. 29, 2003 -- The U.S. Navy has awarded a nine-year, $281 million contract to Northrop Grumman Corporation (NYSE:NOC) to develop a fully integrated personnel and pay capability for all military branches of the Department of Defense (DoD).

The Defense Integrated Military Human Resource System (DIMHRS) will support more than three million military personnel deployed globally and is one of the largest, most complex enterprise resource planning (ERP) initiatives ever launched. It will be the single authoritative source of personnel information on individuals and units across the DoD regardless of military service affiliation.

As the prime contractor, Northrop Grumman will be the systems integrator and have overall responsibility for the implementation of DIMHRS. The program will be managed by the company's Information Technology (IT) sector and it is anticipated that most of the work will be performed in New Orleans.

"Northrop Grumman IT has a proven track record of excellent performance in federal ERP implementations and superior domain knowledge in the military services," said Kent Schneider, president, Defense Enterprise Solutions, Northrop Grumman IT. "This long-term contract will set a precedent in the global e-business environment and should significantly benefit our growth in federal and commercial markets."

The DIMHRS system will collect data on every aspect of a military service member's career. It will retain and maintain that data in a single, comprehensive record available to that individual. It will empower service members by providing remote, self-service access to pay and personnel information in order to ensure their families are provided for and that updates have been made.

DIMHRS enhances mission support by eliminating or reducing data collection burdens, solves operational problems with consistency and accuracy of critical information, conserves resources, improves delivery services and enhances readiness. The system will provide common core functionality, information and data exchange, and associated core database capabilities supplemented by service-specific needs.

Northrop Grumman Corporation estimates that the DIMHRS program will create 200 new jobs, mostly in New Orleans. The company is already the largest private employer in Louisiana with more than 6,000 employees statewide.

Northrop Grumman IT team members primarily include Accenture, Reston, Va.; CACI, Arlington, Va.; IBM Corp., White Plains, N.Y.; and a large group of small businesses, mostly based in New Orleans. The University of New Orleans is also a key partner.

Northrop Grumman Information Technology, based in Herndon, Va., is a trusted IT leader and premier provider of advanced IT solutions, engineering and business services for government and commercial clients.

LEARN MORE ABOUT US: Northrop Grumman news releases, product information, photos and video clips are available on the Internet at: http://www.northropgrumman.com. Information specific to the Information Technology sector is available at: www.it.northropgrumman.com/index.html

CONTACT: Juli Ballesteros, APR
Northrop Grumman Information Technology
(703) 713-4675

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