ROLLING MEADOWS, Ill., Aug. 25, 2004 -- Northrop Grumman Corporation (NYSE:NOC) has been selected by the U.S. Department of Homeland Security (DHS) forPhase II of the Counter-Man Portable Air Defense Systems (Counter-MANPADS)program, which is designed to protect commercial aircraft from attack byground-based, shoulder-fired missiles.

During the Phase II contract, which is valued at $45 million, NorthropGrumman will complete the design, fabrication, installation, flight testing andcertification of prototype counter-MANPADS systems for two commercial aircraft:the Boeing 747 and the MD-11. For the DHS program, Northrop Grumman is adaptingits directional infrared countermeasure (DIRCM) system, an anti-missile systemcurrently in production and deployed on a variety of military aircraft aroundthe world.

Managed by DHS's Science and Technology directorate, Phase II is slated tolast 18 months, concluding in January 2006.

"Countering the potential threat from shoulder-fired missiles demandsthe most capable, field-proven technologies available," said Robert DelBoca, vice president of Infrared Countermeasures and Laser Systems for NorthropGrumman's Electronic Systems sector. "Northrop Grumman is uniquelypositioned to offer this world- proven technology and to do so in anaffordable manner."

"Northrop Grumman is committed to supporting the Department's fightagainst low-altitude threats," said David Zolet, vice president of HomelandSecurity for Northrop Grumman Corporation. "This program is an integralfirst step in a layered defense for our national airspace."

Northrop Grumman is supported by two key industry partners on its counter-MANPADSteam: Federal Express and Northwest Airlines. Federal Express will provideengineering services for installation, and aircraft modification andcertification. Northwest Airlines will provide engineering and technicalservices to develop a commercially viable equipment set suitable for operationwithin commercial airframes.

In Phase I, which began in January 2004, Northrop Grumman developed adetailed design and an analysis of the economic, manufacturing and maintenanceissues needed to support an anti-missile system that would be effective in thecommercial aviation environment.

Northrop Grumman Corporation is a global defense company headquartered in LosAngeles, Calif. Northrop Grumman provides technologically advanced, innovativeproducts, services and solutions in systems integration, defense electronics,information technology, advanced aircraft, shipbuilding and space technology.With 125,000 employees, and operations in all 50 states and 25 countries,Northrop Grumman serves U.S. and international military, government andcommercial customers.