(Source : Northrop Grumman Corporation ; issued Aug. 19, 2002)

LOS ANGELES --- Northrop Grumman Corporation, leader of the DD(X) Gold Team, and Raytheon Company said today that they were delighted by the decision of the General Accounting Office (GAO), which validates that an appropriate evaluation process was used when the U.S. Navy selected the Gold Team to complete the system design for the Navys 21st century surface combatant, DD(X).

Now that this issue is behind us, we can move ahead on this transformational ship program, which is so critical to the Navy, the DoD and the nation, said Kent Kresa, Northrop Grumman chairman and chief executive officer. We were confident in the Navys selection process, and are grateful that the GAO so expeditiously acted in validating that the Gold Teams proposal provided the best value for the customer. By acting quickly, we hope the Congress will continue to fully fund the DD(X) program in 2003.

Our goal is to move full speed ahead with the Navy and Northrop Grumman to provide innovative and transformational solutions for the Navys DD(X) systems integration requirements, said Daniel P. Burnham, Raytheon chairman and chief executive officer.

We recognize the trust the U.S. Navy has placed in the Raytheon team to do the job, said Dan Burnham, chairman and chief executive officer of Raytheon Company. The Navys selection process was extensive, fair, and professionally managed, Burnham said, we stand firmly behind our Navy customer, and, along with our industry partners, we are dedicated to providing the full capabilities and strengths of the Raytheon one company team to DD(X).

Raytheon is a partner with Northrop Grumman on the industry team that was selected by the Navy on April 29 for the three-year contract to design, develop, build and conduct at-sea tests of Engineering Development Models (EDMs) and then apply the results of the testing to a comprehensive DD(X) ship system design. The contract is expected to total $1.36 billion over the next three years.

DD(X) represents the next-generation of technology for the U.S. Navy, said Bill Swanson, president of Raytheon Company. The Raytheon team -- in partnership with Northrop Grumman and the Navy -- is completely focused on the program and is ready to execute the technical development required to deliver a revolutionary war fighting capability to the Navy.

As the electronic systems integrator, Raytheons Naval & Maritime Integrated Systems (N&MIS;) business will be responsible for DD(X) systems engineering, software development, and combat system equipment. As part of this effort, the company will build and test a dual frequency radar suite, an integrated solid-state communications system, a new launcher, an Integrated Undersea Warfare Suite (IUWS), and a multi-mission Total Ship Computing Environment (TSCE). Raytheon work will be performed in Portsmouth, R.I.; Tewksbury, Mass.; Sudbury, Mass.; Marlboro, Mass.; Ft Wayne, Ind.; and Fullerton, Calif.

Northrop Grummans Ship Systems sector will lead the DD(X) system design, engineering prototype development and testing under a $265 million contract awarded to the Gold Team by the Navy on April 29. The Gold Team includes Raytheon and more than 30 of the nations top engineering and maritime industrial companies. The initial design contract has a total value of approximately $2.9 billion over four years.

We anticipate important contributions from other leading defense companies, including many of our former competitors, said Philip Dur, Northrop Grumman corporate vice president and president of the companys Ship Systems sector. An essential goal of the DD(X) program has been to bring the best value to the customer and incorporate best of breed solutions from a national pool. Our team remains committed to that goal.

The team looks forward to starting design and technology verification work, which will culminate in the construction of a new family of surface combatants. The DD(X) family includes destroyers, cruisers and littoral combat ships. The transformational technologies developed in the DD(X) program will also be backfitted into todays existing fleet of Aegis-equipped cruisers and destroyers.

Key technologies of DD(X) include developing and testing engineering development models for advanced concepts for the gun system, radar suite, integrated power system, vertical launch system and signature management/reduction. The program will also focus on reduced manning with emphasis placed on optimized crew size and high quality of life while minimizing total ownership costs.

The initial phase of the program will employ more than 350 Northrop Grumman Ship Systems management, engineering, operations and logistical support personnel over the next four years. Ship Systems will be joined by four other Northrop Grumman sectors -- Newport News, Information Technology, Electronic Systems and Integrated Systems.

As electronic systems integrator, Raytheons Naval & Maritime Integrated Systems (N&MIS;) business will be responsible for DD(X) systems engineering, software development and development of combat system equipment. As part of this effort, Raytheon N&MIS; will build and test a dual frequency radar suite, an integrated solid-state communication system, a new launcher, an Integrated Undersea Warfare Suite and a multimission total ship computing environment.

With headquarters in Lexington, Mass., Raytheon Company is a global technology leader in defense, government and commercial electronics, and business and special mission aircraft. N&MIS;, headquartered in Portsmouth, R.I., is a premier supplier of integrated naval systems worldwide.

Northrop Grummans Ship Systems sector includes primary operations in Pascagoula and Gulfport, Miss.; New Orleans and Tallulah, La.; and in a network of fleet support offices in the U.S. and Japan. The sector, which currently employs more than 17,000 shipbuilding professionals, primarily in Mississippi and Louisiana, is one of the nations leading full service systems companies for the design, engineering, construction, and life cycle support of major surface ships for the U.S. Navy, U.S. Coast Guard and international navies, and for commercial vessels of all types.

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. (ends)