LOS ANGELES, Sept. 12, 2002 (PRIMEZONE) -- Northrop Grumman Corporation (NYSE:NOC) announced today that it has signed a definitive agreement to sell its Electron Devices and Ruggedized Displays businesses to L-3 Communications (NYSE:LLL). Terms of the transaction, which is expected to close during the 2002 fourth quarter, were not disclosed.
"We continue to actively manage our portfolio to meet the 21st century transformational needs of the U.S. military," said Kent Kresa, Northrop Grumman chairman and chief executive officer. "These are excellent, well-managed businesses. However, our long-term strategic plan is to concentrate on mission enabling electronic systems."
Acquired as part of the April 2001 purchase of Litton Industries, Electron Devices and Ruggedized Displays are part of Northrop Grumman's Electronic Systems sector. The businesses generate less than four percent of the sector's revenue and currently employ approximately 900 people.
Based in San Diego, Calif., the Displays business unit produces ruggedized computers and displays for the digitalized battlefield and for commercial applications. Electron Devices, headquartered in San Carlos, Calif., produces microwave tubes, power modules, amplifiers and high voltage power supplies for microwave devices. Electron Devices also has operations in Williamsport, Pa.
Northrop Grumman was advised by Quarterdeck Investment Partners LLC throughout this transaction.
Northrop Grumman Corporation is an $18 billion, global defense company with its worldwide headquarters in Los Angeles. Northrop Grumman provides technologically advanced, innovative products, services and solutions in defense and commercial electronics, systems integration, information technology and nuclear and non-nuclear shipbuilding and systems. With nearly 100,000 employees and operations in 44 states and 25 countries, Northrop Grumman serves U.S. and international military, government and commercial customers.
Note: Certain statements and assumptions in this release contain or are based on "forward-looking" information (that Northrop Grumman believes to be within the definition in the Private Securities Litigation Reform Act of 1995) and involve risks and uncertainties. Such "forward-looking" information includes, among other things, the statements above as to the impact of the proposed TRW Inc. acquisition on revenues and earnings. Such statements are subject to numerous assumptions and uncertainties, many of which are outside Northrop Grumman's control. These include Northrop Grumman's ability to successfully integrate its acquisitions, assumptions with respect to future revenues, expected program performance and cash flows, the outcome of contingencies including litigation, environmental remediation, divestitures of businesses, and anticipated costs of capital investments. Northrop Grumman's operations are subject to various additional risks and uncertainties resulting from its position as a supplier, either directly or as subcontractor or team member, to the U.S. Government and its agencies as well as to foreign governments and agencies; actual outcomes are dependent upon factors, including, without limitation, Northrop Grumman's successful performance of internal plans; government customers' budgetary restraints; customer changes in short-range and long-range plans; domestic and international competition in both the defense and commercial areas; product performance; continued development and acceptance of new products; performance issues with key suppliers and subcontractors; government import and export policies; acquisition or termination of government contracts; the outcome of political and legal processes; legal, financial, and governmental risks related to international transactions and global needs for military aircraft, military and civilian electronic systems and support, information technology; naval vessels, space systems and related technologies, as well as other economic, political and technological risks and uncertainties and other risk factors set out in Northrop Grumman's filings from time to time with the Securities and Exchange Commission, including, without limitation, Northrop Grumman reports on Form 10-K and Form 10-Q.
Northrop Grumman Corporation filed a registration statement on Form S-4 (File No. 333-83672) with the Securities and Exchange Commission on March 4, 2002 that has been amended to include a joint proxy statement/prospectus relating to the proposed merger of Northrop Grumman and TRW Inc. The directors, certain executive officers and other employees and representatives of Northrop Grumman and TRW Inc. may be deemed to be participants in the solicitation of proxies for the shareholders meeting relating to the proposed merger. The joint proxy statement/prospectus contains important information regarding such potential participants and other important matters which should be read by Northrop Grumman and TRW shareholders before making any decisions regarding the merger. Copies of joint proxy statement/prospectus, and any amendments or supplements thereto, may be obtained without charge at the SEC's website at www.sec.gov as they become available.
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