LITTON INGALLS SHIPBUILDING AWARDED $57.6 MILLION FOR U.S. NAVY FLEET SUPPORT

September 25, 2000 -- The U.S. Navy has awarded a new five-year contract to Litton Ingalls Shipbuilding for continued life cycle engineering and technical services in support of the Navy's fleet of TICONDEROGA (CG 47) Class Aegis guided missile cruisers, and SPRUANCE (DD 963) Class multimission destroyers. These two ship classes include 51 of the U.S. Navy's most advanced surface combatant ships.

Today’s announcement, valued at $57.6 million for Fiscal Year 2001, has a total potential of $311 million over the five-year period.

Ingalls, part of Litton Ship Systems (LSS), will be working in partnership with a second LSS company, the Litton Ship Systems Full Service Center (LSS FSC), in completing work under this contract, which funds work by about 560 employees involved in Ingalls and FSC planning yard efforts in Pascagoula, as well as in fleet support offices at Navy bases in the U.S. and in Japan, where the ships are stationed.

"Post-delivery life cycle support of the Navy's surface fleet is a major element of our Company’s business base," said Litton Ingalls President Dave Wright. "These classes of cruisers and destroyers represent a significant portion of the Navy's surface combatants, and this contract is a validation of our Company's long-standing reputation for excellence in this area of work."

"Our partnership with Ingalls on this contract reflects the LSS business strategy created with the opening of our Company last March," said LSS FSC President Larry Cavaiola. "Our expertise in the maintenance, repair and modernization of ships provides an expansive base for U.S. Navy Fleet Support worldwide."

In addition to design and engineering services, Ingalls and LSS FSC provide scheduling and planning, material acquisition and installation support for the worldwide maintenance, upgrade and

overhaul for the two classes of advanced surface combatants. Ingalls has been providing this type of life cycle support for SPRUANCE Class ships since 1981, and for the TICONDEROGA Class since 1984.

Litton Ingalls Shipbuilding built all 31 of the SPRUANCE destroyers during the 1970s and 1980s (seven of the ships have been retired), and as lead shipbuilder for the Aegis cruiser program, delivered 19 of the 27 ships in the TICONDEROGA Class between 1982 and 1994.