NYSE Symbol: LIT

For Immediate Release

WOODLAND HILLS, CALIFORNIA, October 13, 2000 … Litton Industries (NYSE: LIT) announced today that Polar Tankers, Inc., of Long Beach, CA, a subsidiary of Phillips Petroleum Company, has exercised an option with Litton’s Avondale Industries, Inc. subsidiary for a fourth double hull, crude oil carrier, valued at $197 million.

Under a contract awarded in 1997, Litton Avondale currently has three 125,000 DWT crude oil carriers under construction. Delivery of the first ship is scheduled for January 2001. Polar Tankers has an option with Litton Avondale for a fifth ship to be exercised in the first quarter of calendar year 2001.

"We are pleased to be working with Polar Tankers on building the ships of the Millennium Class," said Tom Kitchen, Litton Avondale president. "During the building of the first three ships of this contract, Litton Avondale has instituted continuous process improvements to enhance efficiencies in their construction. The fourth and fifth ships will receive the full benefit of these initiatives," Mr. Kitchen said.

The Millennium Class "next generation" tankers being built at Litton Avondale are the

first new crude-oil carriers being built for the Alaskan trade in compliance with the Federal Oil Pollution Act of 1990. The Millennium Class tankers are being built to meet and/or exceed existing and proposed environmental regulations and will set new standards for innovation and environmental protection.

In addition to being built with double hulls that exceed regulatory minimums, the tankers incorporate double, independent engine rooms, twin propellers and twin rudders for greater maneuverability. The Millennium Class vessels will have all cargo, fuel and lubricating oils isolated from the ship’s side by ballast tanks or void spaces. The vessels will meet pending air emissions regulations for engines. The ships are also being painted with tin-free anti-fouling paint in anticipation of proposed regulations.

The crude carriers are 272.69 M long by 46.2 M wide by 26.3 M deep (894.7’ x 151.6’ x 86.29’). The ships will hold just over 1,000,000 barrels of cargo at full capacity.

Polar Tankers is the shipping unit of Phillips Alaska, Inc., a wholly owned subsidiary of Phillips Petroleum Company. Polar Tankers' fleet consists of five vessels ranging in size from 50,000 to 265,000 DWT. The entire fleet is employed in the Alaskan crude trade.

Litton Ship Systems (LSS), headquartered in Pascagoula, Mississippi, includes Litton Avondale Industries, located in New Orleans, Louisiana, as well as Litton Ingalls Shipbuilding and the Litton Ship Systems Full Service Center, both in Pascagoula. 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.

Litton is the largest builder of non-nuclear ships for the U.S. Navy and designs, builds, and overhauls surface ships for government and commercial customers worldwide. The company is a prime contractor to the U.S. government for information technology and provides specialized IT services to commercial customers and government customers in local/foreign jurisdictions. Litton is a leading provider of defense and commercial electronics technology, components, and materials for customers worldwide. Headquartered in Woodland Hills, California, Litton has more than 40,000 employees and $5.6 billion in annual revenue. For more information, visit Litton’s Web site at www.litton.com.