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Northrop Grumman Responds to Inaccurate Comments Concerning the U.S. Air Force KC-45A Award Decision

LOS ANGELES - March 5, 2008 - When the process to replace America's aging fleet of KC-135 aerial refueling tankers began in 2005, the U.S. Air Force made clear that it wanted a full and fair competition. Northrop Grumman Corporation (NYSE:NOC) entered the competition with the understanding that if its proposal provided the best value to the warfighter and the American taxpayer, it could win the contract.

Since the Air Force's decision to award Northrop Grumman the KC-45A contract was announced, numerous erroneous comments have been repeated in the media and in Congress. In response, the company wants to make the following points clear:

Industrial Base

• The Northrop Grumman KC-45A tanker program will create a new aerospace manufacturing corridor in the southeastern United States.
• The KC-45A program helps return competitiveness to the U.S. aerospace industry.

Jobs

• The Northrop Grumman KC-45A tanker program does not transfer any jobs from the United States to France or any other foreign country.
• The KC-45A tanker will support more than 25,000 jobs in the United States.
• The KC-45A U.S. supplier base will include 230 companies in 49 states.
• Assembly and militarization of the KC-45A tanker will take place in Mobile, Ala., resulting in the creation of approximately 2,000 direct jobs in the United States.

Acquisition Process

• The KC-45A competition underwent the most rigorous, transparent acquisition process in U.S. Department of Defense history.
• Throughout the process, both competitors in the KC-45A acquisition hailed the Air Force for conducting a fair and open competition.

Foreign Content

• All modern jetliners are built from a global supplier base and the two entrants in the KC-45A competition are no exception. The Boeing tanker includes parts manufactured in Japan, United Kingdom, Canada and Italy. The Northrop Grumman tanker includes parts built in the United Kingdom, Germany, Spain and France.
• The Northrop Grumman KC-45A will include approximately 60 percent U.S. content. It is America's tanker.

Foreign Suppliers to U.S. Military Programs

• There are numerous examples of transatlantic cooperation on vital U.S. military programs. Foreign suppliers currently play essential roles in the F-35 Joint Strike Fighter and the VH-71 Presidential Helicopter. In fact, on the C-27J Joint Cargo Aircraft program, Boeing is responsible for producing the Alenia Aeronautica (Italy) aircraft in Jacksonville, Fla.
• No sensitive military technology will be exported to Europe. For the KC-45A program, a commercial A330 jetliner will be assembled by American workers in EADS's facility in Mobile. The aircraft will then undergo military conversion in an adjacent Northrop Grumman facility. All of the KC-45A's critical military technology will be added by an American company, Northrop Grumman, in America, in Mobile Ala.

Northrop Grumman Corporation is a $32 billion 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:    Randy Belote
            (703) 875-8450
            randy.belote@ngc.com

            Tim Paynter
            (321) 961-1101
            tim.paynter@ngc.com