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Northrop Grumman Update for Gulf Employees

Maritime Activity Reports, Inc.

September 7, 2005

NAVSEA SPECIAL ANNOUNCEMENT

All Naval Sea Systems Command (NAVSEA) and Supervisor of Shipbuilding Gulf Coast employees in the Gulf Coast hurricane zone are requested to contact (202) 781-3889 to verify their whereabouts and contact information. They may also provide contact information via e-mail at [email protected] . For more information, visit http://www.navsea.navy.mil.

TOLL-FREE EMPLOYEE CONTACT LINE

Northrop Grumman requests that every employee from its Gulf Coast facilities contact the company over the next few days via a new toll-free number, (877) 744-7642 to ensure that all employees are accounted for and their needs are being addressed.

Phone service in some regions impacted by the hurricane is not operating at full capacity and may be experiencing high call volume. Northrop Grumman recommends that employees who have had trouble connecting with the (877) 744-7642 number try to call at a later time. This number is staffed 24 hours a day. The company asks employees who reach the number to remain patient if asked to hold.

WORK SCHEDULE UPDATES

PASCAGOULA/GULFPORT:

-- Both facilities will be closed until at least, and will resume normal production no earlier than, Sunday, Sept.11.

-- For Gulfport, all management, supervisors and maintenance personnel should continue to report to work for 7 a.m. to 6 p.m. shifts.

-- For Pascagoula, the following employees should continue to report to work if possible, for a 7 a.m. to 6 p.m. shift: All facilities and ship cleaners, storekeepers, warehouse employees, facilities engineering, maintenance, security, test and change-order electricians, test and trials, safety, production supervisors, craft supervisors, manufacturing services, resource recovery, yard cleaning, production supervision, ship management, inside and outside machinists, carpenters, rigging, production control, transportation and managers in finance, estimating and contracts.

NEW ORLEANS / TALLULAH:

-- Both facilities will be closed until at least, and will resume normal production no earlier than, Sunday, Sept.11.

-- Only maintenance and security shift personnel should report to work if possible. Reporting personnel should be prepared to stay overnight.

PAYROLL INFORMATION

Northrop Grumman Ship Systems will extend full pay to all employees for two weeks including the Labor Day holiday and the pay periods ending Sept. 2 and Sept. 9. Ship Systems employees who have been called into work for clean-up and recovery operations will also receive payment for time worked.

To assist employees in managing immediate financial needs resulting from hurricane damages, the paycheck that will be issued to each employee this Friday, Sept. 9, which normally would only cover the pay period ending Sept. 2, will include pay for both weeks, for a total of 80 hours of pay.

Direct Deposit Update for Sept. 2 Pay:

-- Throughout the weekend the Company has been working with the Federal Reserve to determine the status of financial institutions that have not accepted a transfer of funds for employee payroll direct deposits. At the present time there is one institution, the Bank of Louisiana in Metairie, which has not acknowledged receipt of funds for direct deposit. Employees who have direct deposit accounts with this bank can obtain their net pay amount through a local Western Union. To receive cash, follow the instructions for Western Union described later in this message.

-- The Company has also been in touch with a number of financial institutions to determine their business resumption status. At this time it appears that all of the remaining institutions in the Gulf area (including the Navigator and ASI Federal Credit Unions) should be operational on Wednesday and funds should be available to employees with direct deposit. Employees who experience difficulty in accessing their payroll net-pay amount should call the Employee Disaster Relief Fund at (888) 642-5645.

Payroll Distribution on Sept. 9 Will Take Place as Follows:

PASCAGOULA/GULFPORT

-- For employees using direct deposit, your pay will be transmitted to your bank or financial institution via normal direct deposit channels.

-- For employees who do not participate in direct deposit, paychecks will be available for pickup at the following locations:

Pascagoula employees' paychecks will be distributed from 10 a.m. to 12 p.m. this Friday at the Engineering Center (old K-Mart building) on Highway 90 in Pascagoula.

Gulfport employees' paychecks will be distributed from 10 a.m. to 12 p.m. at the main gate of the Gulfport facility.

Employees who are unable to pick up their paychecks at the above designated locations may use Western Union, described later in this message.

NEW ORLEANS/TALLULAH PAYROLL

-- For employees using direct deposit, your pay will be transmitted to your bank or financial institution via normal direct deposit channels.

-- For New Orleans/Tallulah employees not using direct deposit, you can receive cash payments at Western Union locations.

To Receive Payroll Cash from Western Union:

To receive cash, visit any Western Union location, complete a yellow "To Receive Money" form and you'll receive your net-pay amount. Employees must provide the company's name and headquarters location (Los Angeles-based Northrop Grumman Corporation) and present proper identification such as a valid driver's license, passport, military ID card with photo, or their employee badge with photo. Employees can find the closest Western Union by calling (800) 225-5227 and selecting option 4.

Medical Coverage

Special arrangements have been made to ensure no lapses in coverage occur for Northrop Grumman employees during the hurricane recovery period. The company Benefits Center can assist with health issues, including prescription refills, medical pre-certifications, and guidance for use of physicians and hospitals outside the network areas. Call (800) 894-4194.

Savings Account Line

Company representatives can respond to questions regarding savings plan loans or hardship withdrawals. Call (800) 676-7211.

Northrop Grumman Employee Disaster Relief Fund Available

Direct assistance to employees impacted by Hurricane Katrina will be provided through the new Northrop Grumman Employee Disaster Relief Fund. Affected employees should call (888) 642-5645 to apply.

NORTHROP GRUMMAN ELECTRONIC SYSTEMS SECTOR EMPLOYEES

-- Employees who have not checked in with their supervisors should do so immediately and, beginning on Sept. 6, call the new Employee Contact Line at (877) 744-7642.

-- Electronic Systems employees may also call the Northrop Grumman Information Line at (800) 995-4318 for further instructions.

NORTHROP GRUMMAN INFORMATION TECHNOLOGY EMPLOYEES

-- Northrop Grumman IT sector Gulf Coast employees who have not checked in with their supervisors should do so immediately and, beginning on Sept. 6, call the new Employee Contact Line at (877) 744-7NGC or (877) 744-7642.

-- Information Technology employees may also contact the IT sector's HR customer care center at (800) 604-4890 or [email protected] for further instructions.

-- Internal Information Services employees in the Gulf Coast region should expect to work remotely, or be available for possible transport.

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