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Northrop Grumman Wins US Navy Contract

Maritime Activity Reports, Inc.

September 13, 2005

Northrop Grumman Corporation was selected by the U.S. Navy to develop the Shipboard Protection System, intended to enable naval vessels to counter asymmetric terrorist threats while moored to a pier, at anchor or during restricted maneuvering.

Under the terms of the $6 million contract, Northrop Grumman will provide surface combatants, amphibious ships and aircraft carriers with a fully integrated and seamless sensor, analysis and response system. The system will provide constant 360o situational-awareness and engagement capability to counter such threats, with no increase in manning.

During the first phase of the system development and demonstration effort, to be completed next March, Northrop Grumman will provide an integrated surface- surveillance system and non-lethal weapons and devices. The surface-surveillance system will incorporate electro-optical and infrared sensors, and radar into a common tactical-surveillance system.

For the first contract phase, Northrop Grumman will act as the system integrator; provide system design, mission-specific hardware, software, and firmware components; and implement performance-based logistics.

The Shipboard Protection System program will be managed from Northrop Grumman's Naval and Marine Systems headquarters in Charlottesville, Va., with additional work to be performed at the company's locations in Annapolis, Md., and Ocean Springs, Miss.

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