Northrop Grumman Rewarded for Energy Conservation Efforts

Rebate from California's `Cool Savings with Cool Roofs' Program is One of State's Largest


EL SEGUNDO, Calif., July 25, 2003 (PRIMEZONE) -- Northrop Grumman Corporation's (NYSE:NOC) Integrated Systems sector has received one of the largest energy rebates awarded by the state of California for installing "cool roofs" on several buildings at its El Segundo headquarters. The use of this simple, reflective technology helps California stretch its energy supply, and makes Northrop Grumman a leading contributor to a statewide energy conservation program that saves an estimated 19.5 megawatts of electricity on high-demand summer afternoons.

Developed in response to the energy crisis of 2000-2001, the $25 million "Cool Savings with Cool Roofs" program was funded by the California Energy Commission and administered by the San Diego Regional Energy Office (SDREO). It offered commercial building owners a one-time energy rebate of 15 cents per square foot for using reflective materials to build or resurface a flat roof. Northrop Grumman received a rebate of $101,553 from the program, which ended March 31, 2003.

The idea behind cool roofs is simple: dark colored materials absorb more heat than light colored materials. In fact, a dark roof absorbs more than 70 percent of the solar energy striking it, producing peak roof temperatures of 150 to 190 degrees Fahrenheit on hot summer days. By contrast, light-reflective roofs remain typically 50 to 60 degrees cooler, which can reduce air conditioning bills by up to 20 percent.

"Keeping cool is a matter of wearing the right fabric," said Don Savell, a facilities engineer for Integrated Systems in El Segundo. Using single-ply roofing sheets made of nearly indestructible woven fabric called "scrim," Savell applied his fashion axiom to the roofs of four Northrop Grumman buildings -- more than 677,000 square feet in all. The reflective sheets are mechanically bonded together with heat-welded seams that cannot be pulled apart. They have a lifespan of 15 to 20 years compared to the three to four years expected from conventional sprayed-on, cement-like coatings.

"Installing cool roofs is a win-win situation for everyone," said Gary W. Ervin, sector vice president for Integrated Systems' Air Combat Systems business unit. "It lowers our energy consumption, which reduces the demand on the state's power grid. Lower overhead costs also help us continue delivering best-value products to our customers."

Frank White, SDREO project manager, added "Cool roofs are a cost-effective, environmentally friendly way to save energy. We're delighted that Northrop Grumman chose to partner with us to help California achieve such significant energy savings."

Northrop Grumman Integrated Systems, headquartered in El Segundo, Calif., is a premier aerospace and defense systems integration enterprise. As one of Northrop Grumman Corporation's seven sectors, it designs, develops, produces and supports network-enabled integrated systems and subsystems for U.S. government, civil and international customers. Integrated Systems delivers best-value solutions, products and services that support military missions in the areas of intelligence, surveillance and reconnaissance; battle management command and control; and integrated strike warfare.

The San Diego Regional Energy Office is an independent, public-benefit, non-profit 501(c)(3) corporation that provides objective information, research, analysis and long-term planning on energy issues for the San Diego region. Serving as a critical link between consumers and government, it manages more than $30 million in public funds through a variety of rebate, incentive and education programs.

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