For naval, commercial and international customers

LITTON INDUSTRIES ANNOUNCES FORMATION OF NEW COMPANY

TO PROVIDE FULL RANGE OF SHIPBUILDING-RELATED SERVICES

WOODLAND HILLS, California, March 2, 2000 – Continuing its business strategy to become the marine industry’s full service leader, Litton Industries (NYSE:LIT) announced today the formation of a new company, the Litton Ship Systems Full Service Center.

Operating as a standalone business within the existing Litton Ship Systems (LSS) organization, headquartered in Pascagoula, Mississippi, LSS FSC, will offer its customers a full range of research and development, design, analysis and life cycle support services, in conjunction with the two LSS shipyards, Litton Avondale Industries in metro New Orleans, Louisiana, and Litton Ingalls Shipbuilding in Pascagoula, as well as a worldwide network of fleet support offices already in place.

"Through our two shipyards, Litton is already one of the nation’s leading 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," said Michael R. Brown, President, Chairman and Chief Executive Officer of Litton Industries. "In forming this new company, we are taking the next step in broadening our ability as a significant industry partner in R&D, as a prime contractor for design and production, and as a single point of contact for support services throughout the operational lifetime of a single ship or a fleet of vessels."

"This new company supplements Litton’s well-positioned core businesses, enabling Litton Ship Systems to meet the full service contractor needs of commercial and international customers, as well as every non-nuclear full service contractor requirement of the U.S. Navy, Marine Corps and Coast Guard," said Jerry St. Pé, Chief Operating Officer of Litton Ship Systems and Executive Vice President of Litton Industries.

"As lead shipbuilder for several current classes of U.S. Navy surface combatant and amphibious ships, Ingalls and Avondale have a demonstrated expertise as full service contractors for surface combatants," St. Pé continued. "In forming this new company, we move to the ‘next level’ of full-service support, offering customers a wide range of technical knowledge and a worldwide network from which to expand our ongoing efforts in R&D, in fleet support in the Navy’s homeports, and in the Navy’s future conversion, modernization and repair needs. Additionally, this new company provides an exceptional platform from which to support such critical Navy programs as DD 21, LPD 17 and T-ADC(X).

"As our customers continue to change the way they acquire products and services, they have stated their desire for greater industry involvement in all phases of a program," St. Pé said. "Forming our new Litton Ship Systems Full Service Center is a key element of Litton’s response to this customer need."

St. Pé announced that Dr. Lawrence J. Cavaiola has been named president of the new Litton Ship Systems Full Service Center. Cavaiola, 52, joined Ingalls in 1998 as Vice President for Government Relations and Strategic Development. Following Litton’s acquisition of Avondale Industries in 1999, and the corporation’s subsequent formation of Litton Ship Systems, Cavaiola was assigned as LSS Vice President for Strategic and Business Development.

Dr. Cavaiola graduated with distinction from the U.S. Naval Academy in 1969. He holds a Ph.D. in Operations Research from The Johns Hopkins University. Prior to joining Ingalls, he served in senior positions with the U.S. Congress, in the Department of Defense, and in industry. He served for 26 years on active and reserve service with the U.S. Navy, retiring as a Captain.

"The Litton Ship Systems Full Service Center clearly possesses recognizable expertise in the maintenance, repair, and modernization of ships," Cavaiola said. "It will also bring world-class capabilities to our customers in many other areas, including the design of advanced composite structures for ships, integrated ship topsides, and advanced small combatants for the world markets. The Center will also establish itself quickly in the conceptual design of advanced systems, such as those needed for expeditionary warfare and joint command and control platforms.

"Litton will offer its customers a principal industry partner, a highly capable prime contractor during design and construction, and a one-stop source for private sector life cycle support," Cavaiola said. "Our customers will have the highest level of confidence that their program requirements will be efficiently and economically met by a full service contractor team offering an unquestionably better value to the Navy and the American taxpayer."

Litton Ship Systems currently employs more than 16,000 shipbuilding professionals, primarily in Mississippi and Louisiana. LSS has a firm business backlog exceeding $6 billion, in a variety of naval and commercial shipbuilding programs. 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.