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Northrop Grumman Delivers Proposed Corrective Action Plan to VITA

RICHMOND, Va. - Aug. 31, 2009 - Northrop Grumman has delivered, on schedule, a proposed corrective action plan to the Virginia Information Technologies Agency (VITA). The plan addresses how Northrop Grumman proposes to move forward to meet the terms of the $1.9 billion, 10-year contract to modernize the IT infrastructure for executive branch agencies.

VITA requested the plan from Northrop Grumman after both realized the transformation to a modern and robust IT infrastructure environment managed by Northrop Grumman would not be achieved by this past June 30.

"We have used our now considerable experience from our interaction with VITA and with state agencies to create what we believe are vastly improved processes and schedules in this plan," said Tom Shelman, vice president and general manager, Civil Systems Division, Northrop Grumman Information Systems. "We are looking forward to VITA's suggestions so that we can come to agreement on the best approach for this final push in modernizing the IT infrastructure."

"I appreciate the significant work and thought that has gone into producing this plan," said Commonwealth CIO George Coulter. "We will review it thoroughly and will work with Northrop Grumman to refine it and put it into action."

"Significant progress has been made on modernization of the infrastructure, which includes networks, mainframes, servers, personal computers, messaging, help desk and facilities," Coulter added. "While the plan must be finalized, I believe the public-private partnership can accomplish transformation in the coming year."

"Transformation activities at several agencies are expected to be complete in the next few months," said Shelman. "Work continues daily with each agency to coordinate and finalize the transformation schedules. This proposed plan, with the cooperation and commitment of all parties, will place the completion of transformation on a track toward success."

Northrop Grumman proposed plan key components are:


 * Higher degree of coordination with agencies and VITA on dates
   and criteria. Transition work by its nature is disruptive, but
   based on the lessons learned it is clear that the disruption can
   be mitigated by enhanced involvement of the agencies in planning
   and scheduling.
 * Agency Deployment Managers and Agency Operations Managers to
   enable direct communication between agencies and Northrop
   Grumman. The team would be empowered to take quick action to
   resolve issues that arise.
 * Improvements in escalation processes. Such improvements will
   promote quick decision making and collaborative problem solving.
 * An improved scheduling process that includes agency sign-off and
   acceptance. All agency transitions would be scheduled for
   completion by March 31, 2010, but the schedule also allows for
   a contingency period for unexpected technical and business
   challenges.

VITA is the Commonwealth's consolidated technology provider responsible for infrastructure, governance and oversight of major IT projects, security, enterprise solutions, and procurement of technology-related goods and services on behalf of state and local governments. www.vita.virginia.gov

Northrop Grumman Corporation (NYSE:NOC) is a leading global security company whose 120,000 employees provide innovative systems, products, and solutions in aerospace, electronics, information systems, shipbuilding and technical services to government and commercial customers worldwide. www.ngc.com

CONTACT:  Christy Whitman
          Northrop Grumman Corporation
          (571) 213-5302
          Christine.whitman@ngc.com

          Marcella Williamson
          VITA
          (804) 416-6002
          Marcella.williamson@vita.virginia.gov