NEWS RELEASE

NEW ORLEANS, LA. February 15, 2000 – Litton Avondale Industries, a division of Litton Industries (NYSE: LIT), said today that the U.S. Navy has exercised an option for the construction of LPD 19, valued at $491.9 million. The award covers a cost-reimbursable contract to the Litton Avondale Alliance to build the third LPD 17 Class ship, the Navy's newest and most advanced amphibious assault ship. LPD 19 is planned for construction at Bath Iron Works (a subsidiary of General Dynamics), located in Bath, Maine. Litton Avondale serves as the prime contractor for a consortium of team members known as the Litton Avondale Alliance which, along with Bath Iron Works, includes Raytheon Electronic Systems and Intergraph Corporation.

Tom Kitchen, President of Litton Avondale, said the award "underscores the Navy's confidence in Litton Avondale as the lead contractor in this important program. The Litton Avondale Alliance is working diligently on the LPD 17 Class design, and remains committed to seeking new Total Ownership Cost (TOC) saving initiatives for the SAN ANTONIO Class."

The first two ships in the LPD 17 Class, also awarded under cost-reimbursable contracts, will be constructed in Litton Avondale's shipyard in New Orleans, Louisiana. A total of 12 ships are planned for the LPD 17 Program with eight ships planned to be built at Avondale and four ships to be built at Bath. Design of the lead ship is underway at Litton Avondale, and actual construction is scheduled to start in mid 2000.

Two ships, LPD 19 and LPD 20, have been authorized and appropriated by Congress. LPD 20, which will be built at Avondale, is anticipated to be awarded in the near future.

Litton Avondale Industries, along with Litton Ingalls Shipbuilding in Pascagoula, Mississippi, is part of Litton Ship Systems (LSS), one of the nation’s leading full service systems companies for the design, engineering, construction, and life cycle support of major surface vessels for the U.S. Navy, U.S. Coast Guard and international navies, and for commercial vessels of all types.

Litton Industries is also a leading information technology (IT) contractor to the U.S. government and provides specialized IT services to commercial customers and government customers in local/foreign jurisdictions. Litton provides defense and commercial electronics technology, components, and materials for customers worldwide. Headquartered in Woodland Hills, California, the company has more than 40,000 employees, and, including the acquisition of Avondale, Litton is expected to have more than $5.5 billion in revenue.