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Northrop Grumman Awarded Multiship Contract

Maritime Activity Reports, Inc.

March 7, 2002

Northrop Grumman Corporation announced today that its Newport News sector has been awarded a multi-year, multiship contract by the U.S. Navy for nonpropulsion work on Nimitz-class aircraft carriers in San Diego through 2007. The contract is valued at approximately $150 million. Newport News will lead a team of San Diego-based contractors for the production work under contract. The team consists of National Steel and Shipbuilding Co., Pacific Ship Repair and Fabrication Inc., SouthWest Marine Inc., and Continental Maritime. The first authorized task involves planning for the upcoming Planned Incremental Availability on the USS John C. Stennis (CVN 74) at the North Island Naval Air Station in the fall of 2002. This contract is a follow-on to a previous contract for maintenance and modernization of Stennis in San Diego.

The Stennis and the USS Nimitz (CVN 68) are currently home-ported in San Diego and the Navy has announced that the Ronald Reagan (CVN 76), currently under construction at Northrop Grumman Newport News, will also be based in San Diego after delivery.

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