PASCAGOULA, Mississippi, May 30, 2000 — The U.S. Navy has awarded Litton Ingalls Shipbuilding a $41.7 million cost-plus-award-fee contract, under which Ingalls will continue to provide engineering and planning support services to the Navy's DDG 51 Class Aegis guided missile destroyer program. Ingalls is part of Litton Ship Systems, which also includes Litton Avondale Industries in New Orleans, Louisiana, and the Litton Ship Systems Full Service Center, also in Pascagoula.

The $41.7 million award is the first increment of a five-year Follow-Yard Services contract, which has a potential total value of over $211 million. The remaining elements of the contract will be awarded annually over the next four years. Litton and Ingalls have been providing support services for the DDG 51 program for the past 12 years.

"Ongoing support of the Navy's surface fleet is a major element of Litton Ship Systems’ business base," said Jerry St. Pé, Chief Operating Officer of Litton Ship Systems, and Executive Vice President of Litton Industries (NYSE: LIT). "In awarding this new five-year Follow-Yard Services contract," St. Pé said, "the Navy expresses its confidence in Litton Ship Systems’ ability not only to build these ships, but also to provide vital engineering and planning support to a class of destroyers that now includes more than 50 ships in the Fleet or under contract." Ingalls has delivered 12 Aegis destroyers to the Navy, and will deliver a 13^th, ROOSEVELT (DDG 80), next month. Twelve additional Aegis destroyers are under contract or option to Ingalls, with delivery dates extending into 2006.

Under a series of Navy contracts, more than 1,000 Litton Ship Systems employees are engaged in a wide variety of technical, design, engineering, and life cycle fleet support tasks at Ingalls and Avondale, as well as in the Full Service Center in Pascagoula, in the Washington, DC, area, and at Navy bases in Norfolk, Virginia; Mayport, Florida; Everett, Washington; San Diego, California; Pearl Harbor, Hawaii, and Yokosuka, Japan.

Litton Ship Systems currently employs more than 17,000 shipbuilding professionals, primarily in Mississippi and Louisiana, and 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.

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.