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Northrop Grumman, BAE SYSTEMS to Collaborate on Missile Defense Solutions

Accord Makes Joint Wargame Exercises Possible

RESTON, Va., July 28, 2003 (PRIMEZONE) -- Northrop Grumman Corporation (NYSE:NOC) and BAE SYSTEMS plc today announced they have signed a Memorandum Of Understanding (MOU) to cooperate on developing missile defense solutions, focusing specifically in the area of modeling and simulation.

This announcement follows the signing of a framework MOU on June 12, 2003, between the U.S. Department of Defense and the U.K. Ministry of Defence to develop bilateral cooperation on missile defense. The first immediate result of that accord was the July 18, 2003, launch of the U.K. Missile Defence Centre (MDC), a joint U.K. government and industry initiative set up as a focus for U.K./U.S. cooperation on missile defense.

The two companies will establish a business-to-business framework for interaction between the U.S. Missile Defense Agency (MDA) Joint National Integration Center, for which Northrop Grumman is the prime, and with the BAE SYSTEMS Battlespace Management Evaluation Centre (BMEC) facility. The BMEC facility is to be used within the MDC to evaluate, among other things, options for defending the U.K. This framework can be used at the discretion of both countries to immediately move out on missile defense wargaming activities.

"Northrop Grumman's and BAE SYSTEMS' combined strength in missile defense, in-depth technical knowledge, and sensitivity to global issues, ensures our governments will receive the best possible solutions to the integration and interoperability challenges inherent in a missile defense system," said Donald C. Winter, Northrop Grumman vice president and lead executive for missile defense. "This MOU paves the way for both companies to go beyond the planning phase. It enables us to reach into the critical problem-solving phase that only proven modeling and simulation can offer. Jointly, our unrivalled expertise will enable us to enhance the effectiveness of a global layered missile defense capability."

"We believe that this early cooperation between BAE SYSTEMS and Northrop Grumman can help to catalyze an approach to missile defense at the industry level," said Mike Rouse, group marketing director for BAE SYSTEMS. "By working together to provide a bridge between U.S. and U.K. analytical capabilities, we aim to facilitate a better understanding of the U.S. Ballistic Missile Defense System. This will help inform decision makers on missile defense in both countries, while at the same time creating a trans-Atlantic collaborative environment in preparation for further U.K. industrial involvement."

BAE SYSTEMS is a systems company, innovating for a safer world. BAE SYSTEMS employs nearly 100,000 people including Joint Ventures, and has annual sales of around 12 billion Pounds ($19.4 billion USD). The company offers a global capability in air, sea, land and space with a world-class prime contracting capability supported by a range of key skills. BAE SYSTEMS designs, manufactures and supports military aircraft, surface ships, submarines, space systems, radar, command and control systems, avionics, communications, electronics, guided weapon systems and a range of other defence products. BAE SYSTEMS is dedicated to making the intelligent connections needed to deliver innovative solutions.

Northrop Grumman's role in missile defense includes detection, tracking and engagement. Northrop Grumman is bringing its entire suite of expertise in systems integration, high-tech weaponry, and domain knowledge to bear on the challenge of a layered missile defense capability. The full spectrum of programs includes prime contractor roles for the Defense Support Program satellite; the Space Tracking and Surveillance System (STSS); the Joint National Integration Center; the Joint Tactical Ground Station; and the Liquid Booster target program. Northrop Grumman is also leading teams pursuing MDA's Kinetic Energy Interceptors program and targets and countermeasures prime program, and playing a leading role developing and upgrading the Aegis platform.

Key roles on the GMD program include the GMD Fire Control/Communications System, the Command Launch Equipment Command and Control system, the canister package for the Groundbased Interceptor, and support for the launch of target vehicles from Vandenberg Air Force Base.

As a leader in chemical lasers, Northrop Grumman is developing the high-power chemical laser component of the MDA's Airborne Laser program and is the U.S. Army's prime contractor for the Mobile Tactical High Energy Laser. Northrop Grumman also provides payloads and mission processing for SBIRS-High and STSS, support services and active/passive sensor technology directly to MDA.

Northrop Grumman Corporation is a $25 billion global defense company, headquartered in Los Angeles, Calif. Northrop Grumman provides a broad array of technologically advanced, innovative products, services and solutions in systems integration, defense electronics, information technology, advanced aircraft, shipbuilding and space technology. The company employs approximately 120,000 employees and operates in all 50 states and 25 countries, and 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: http://www.northropgrumman.com. Information specific to the Mission Systems sector is available at: www.ms.northropgrumman.com/index.html

CONTACT: Jay McCaffrey
Northrop Grumman Mission Systems
(703) 345-8910

Phil Soucy
+44 (0) 1252-384797

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