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Commonwealth of Virginia Selects Northrop Grumman for $2 Billion IT Infrastructure Partnership Contract

MCLEAN, Va. -- Nov. 14, 2005 -- Northrop Grumman Corporation (NYSE: NOC) has been awarded an interim contract by the commonwealth of Virginia to help transform and improve its information technology infrastructure to ensure quality services are delivered to state agencies and the citizens they serve. The interim contract phase is funded at $3.5 million. Upon review by Virginia’s General Assembly, the interim contract will transition to a 10-year contract valued at approximately $2 billion and will include cost reimbursable, fixed-priced and fixed-unit pricing contractual provisions.

Northrop Grumman’s Information Technology (IT) sector will support the Virginia Information Technologies Agency (VITA) in its IT infrastructure transformation of 91 executive branch agencies.

Northrop Grumman was selected under the commonwealth’s Public-Private Education Facilities and Infrastructure Act of 2002. Through the use of this law, VITA is pioneering a model for information technology governance and operational excellence which represents the most comprehensive reform of state government information technology in the nation. This model establishes Virginia as a leader in the use of technology in government.

“This unique public-private partnership builds on the company’s strong relationship with the commonwealth and is a true landmark in the way state government serves its citizens,” said Hugh Taylor, president of Northrop Grumman IT’s Commercial, State and Local Solutions business. “Northrop Grumman looks forward to creating a long-term relationship with the professionals at VITA and with the commonwealth to help deliver top-quality information technology service to Virginia’s citizens and customers.”

“We applaud Gov. Mark Warner, the Secretary of Technology, and the Information Technology Investment Board for their vision and leadership in undertaking a revolution in government that will serve as a model for other states,” said James O’Neill, corporate vice president and president of the company’s IT sector.

Under the contract, Northrop Grumman and the commonwealth will partner to transform the IT infrastructure which is critical to the operations of state government. Additionally, this IT transformation will help improve services for Virginia’s citizens by providing them with advanced technology. IT services provided by the infrastructure partnership will include network services, desktop services and e-mail, data-center consolidation and management, customer-care services, call centers, and other infrastructure projects and services.

Northrop Grumman will provide career opportunities to the current VITA workforce of approximately 900 employees to build a team to continue IT support to commonwealth agencies. The company will construct a continuity of operations and customer support operations center in southwestern Virginia.

The company’s teammates on the contract include: Hewlett-Packard, Palo Alto, Calif.; Booz Allen Hamilton, McLean, Va.; Gateway, Irvine, Calif.; and MCI, Ashburn, Va.

Northrop Grumman, with nearly 32,000 employees in Virginia, is the commonwealth’s largest non-retail private employer, and provides information technology solutions to several local Virginia governments, including Roanoke and Stafford counties.

Northrop Grumman Information Technology, headquartered in McLean, Va., is a trusted IT leader and premier provider of advanced IT solutions, engineering and business services for government and commercial clients. The company's technological leadership spans such areas as homeland security solutions, health IT solutions, secure wireless, cyber and physical assurance, IT and network infrastructure, managed services, knowledge management, modeling and simulation, and geospatial intelligence solutions.

Future performance of Northrop Grumman Corporation is subject to various factors, including risks and uncertainties, that are set out from time to time in its filings with the U.S. Securities and Exchange Commission, including without limitation Forms 10K and 10Q.

Contacts:

Juli Ballesteros, APR
(703) 713-4675
juli.ballesteros@ngc.com