DALLAS, May 9, 2002 (PRIMEZONE) -- Northrop Grumman Corporation (NYSE:NOC) announced today that its Integrated Systems sector will relocate its headquarters from Irving, Texas, to El Segundo, Calif., by the end of 2002. The move is expected to generate greater efficiencies by placing headquarters' functions closer to the sector's largest business unit, which is managing several of the company's high-priority programs.

Based in the Dallas area since 1999, Northrop Grumman Integrated Systems employs about 230 people at its Las Colinas headquarters location and more than 12,000 individuals worldwide. As part of the move, approximately 55 positions will relocate to either El Segundo or other sector locations. The relocation will result in a workforce reduction of approximately 100 employees. The sector's Financial Service Center, comprising approximately 75 employees, will remain in Dallas. Over the coming months, the sector said that it would work with affected employees to identify other opportunities within Northrop Grumman and other aerospace companies within the Dallas/Fort Worth area.

"From unmanned systems to our role on the Joint Strike Fighter program, Southern California is home to several of our most dynamic and promising programs," said Scott Seymour, Northrop Grumman corporate vice president and president of the company's Integrated Systems sector. "Therefore it makes sense to align our headquarters with our growing businesses. In doing so, we expect to gain greater operating efficiencies by enabling more efficient use of the sector's largest concentration of personnel and other resources.

"Between now and the end of the year, we will work to ensure a seamless transition of operations. We will also continue to explore all facets of our business for cost reduction opportunities to increase our competitive position and add value to the products and services we provide our customers," Seymour concluded.

Integrated Systems formerly managed significant operations in the Dallas area before selling its commercial aerostructures business in 2000. Integrated Systems will maintain major operations in Melbourne, Fla., where the Joint Surveillance Target Attack Radar System is based, and in Bethpage, N.Y., home of the E-2C Hawkeye airborne early warning command and control aircraft and the EA-6B Prowler electronic warfare aircraft.

The Integrated Systems headquarters team will join the approximately 5,000 Southern California sector employees currently working on programs such as The Boeing Company's F/A-18 Super Hornet and Lockheed Martin Corporation's Joint Strike Fighter. Other prominent Southern California sector programs include unmanned aerial vehicles such as Global Hawk. Additionally, the sector performs maintenance and upgrades on the B-2 Spirit stealth bomber.

Northrop Grumman, a California-based company for more than six decades, currently employs approximately 14,000 people throughout the state, approximately 12,000 of whom are employed in Southern California.

Northrop Grumman Integrated Systems, headquartered in Dallas, Texas, is a premier aerospace systems integration enterprise. Integrated Systems has the capabilities to design, develop, integrate, produce and support complete systems, as well as airframe subsystems, for airborne surveillance and battle management, early warning, airborne electronic warfare and air combat aircraft. It is also integrating these capabilities for emerging network-centric warfare concepts.

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.

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