WASHINGTON, DC, January 24, 2000 – Litton (NYSE: LIT) Ingalls Shipbuilding, a Litton Ship Systems company, and Lucent Technologies (NYSE: LU) today announced an agreement to develop breakthrough communications technology applications for United States Navy ships.

Under the terms of the agreement, the two companies together will pursue technology developments that play to their respective strengths. Ingalls will provide expertise in robotics, advanced ship design and production, and design and fabrication using advanced materials. Lucent will provide expertise in communications and data networking, as well as wireless, optical and Internet technologies.

"Our goal is to work with Ingalls to create 'smart ships,'" said Jim O'Neill, president of Lucent's Government Solutions business. "Cutting-edge technologies from Bell Labs are used routinely to solve the global communications needs of corporations, but those same technologies also hold great potential for shipboard use. They can be used to automate ship systems, equipment and displays, and to provide the Navy with ready access to information -- when and where it's needed."

"We're looking forward to providing a showcase for high-tech solutions that improve a ship's mission capability," added Pat Keene, president of Litton Ingalls. "Conditions at sea can present unusual demands on technology. But we intend to use Ingalls' experience in design and manufacturing to demonstrate that it is possible to routinely use leading-edge technologies at sea. As the Navy moves to 'Knowledge-Centric' technology, Ingalls will be ready."

Litton Ship Systems (LSS), headquartered in Pascagoula, Mississippi, includes Litton Ingalls Shipbuilding and the Litton Ship Systems Full Service Center, both located in Pascagoula, as well as Litton Avondale Industries, located in New Orleans, Louisiana. LSS, which currently employs more than 17,000 shipbuilding professionals, primarily in Mississippi and Louisiana, is one of the nation's leading full service systems companies for the design, engineering, construction, and life cycle support of major surface ships for the U.S. Navy, U.S. Coast Guard and international navies, and for commercial vessels of all types. LSS has a firm business backlog exceeding $5.6 billion, in a variety of naval and commercial shipbuilding programs. For more information on Litton Ingalls Shipbuilding, visit their Web site at http://www.northropgrummanshipsystems.com.

Litton Industries is also a leading information technology (IT) contractor to the U.S. government and provides specialized IT services to commercial and government customers in local and international 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. For more information on Litton Industries, visit their Web site at http://www.Litton.com.

Lucent Technologies, headquartered in Murray Hill, N.J., designs, builds and delivers a wide range of public and private networks, communications systems and software, data networking systems, business telephone systems and microelectronic components. Bell Labs is the research and development arm for the company. For more information on Lucent Technologies, visit the company's Web site at http://lucent.com.