Newport News Shipbuilding Receives Revised Proposal From Northrop Grumman

Newport News Shipbuilding said that it has received a revised proposal from Northrop Grumman Corporation in which the "collar" used in determining the amount of Northrop Grumman Common Stock and cash to be received by Newport News stockholders would be adjusted so that Newport News stockholders would receive a value of $67.50 per share if the market value of Northrop Grumman Common Stock does not exceed $100 per share and is not less than $80 per share.

Newport News said that it has been advised by Northrop Grumman that the Northrop Grumman Board of Directors has approved this proposal. Newport News said that it expects that its Board of Directors will meet on Wednesday, November 7, to consider the new Northrop Grumman proposal. The proposal is subject to the negotiation of a mutually satisfactory merger agreement. There can be no assurance that such an agreement will be reached.