Two more DDG 51 Class Aegis destroyers

U.S. Navy awards Ingalls $660 million shipbuilding contract

December 16, 1999 -- Litton Ingalls Shipbuilding, a division of Litton Industries (NYSE: LIT), has been awarded a $660 million contract to build two additional DDG 51 Class Aegis guided missile destroyers for the United States Navy.

The two-ship contract awarded today represents the funding of two additional ships included in a multi-year, multi-ship contract awarded to Ingalls in March 1998. With today’s award, Ingalls has 23 Aegis destroyers under firm contract. Two additional ships are included for funding next year. Of the 25 ships and options awarded to Ingalls, 12 ships have been delivered. A 13^th Ingalls-built destroyer will be delivered in mid-2000.

The Navy plans a total of 57 ships in the DDG 51 program. With awards and options to-date, the Navy has committed to the procurement of 52 ships through the year 2001. The five remaining ships are planned for award in the years 2002 and 2003.

"Building Aegis destroyers and future naval surface combatants for the U.S. Navy is a major, strategic segment of Litton Ship Systems’ business base," said Jerry St. Pé, Chief Operating Officer of Litton Ship Systems and Executive Vice President of Litton Industries. "The Navy’s multi-year procurement approach has brought vital stability to the Aegis destroyer program, to our nation’s shipbuilding industrial base, and to Litton Ship Systems’ business planning process," St. Pé said. "Delivery dates on DDG 51 destroyers at Ingalls extend into 2005, and will keep our experienced, seasoned workforce of destroyer builders engaged well into the 21st century."

Ingalls’ workforce is currently at 10,500. Approximately 4,800 Ingalls employees are involved in the design, construction and postdelivery support of Aegis ships. Including the $660 million awarded today, Ingalls’ total firm business backlog is approximately $4.5 billion.

The U.S. Navy's Aegis program is one of the most important shipbuilding programs in America today. Truly multimission combatants, Aegis ships are designed to provide primary protection for the Navy's battle forces, but are also the most balanced surface warships ever built, equipped with the weapons, electronics, helicopter support facilities, and propulsion, auxiliary and survivability systems to carry out the U.S. Navy's missions today, and into the next century.

Aegis destroyers are equipped to conduct a variety of missions, from peacetime presence and crisis management to sea control and power projection, in support of national military strategy. The ships operate with battle groups in high-threat environments and also provide essential escort capabilities to Navy and Marine Corps amphibious forces, combat logistics ships and convoys. The ships are 509.5 feet long, with a beam of 66 feet. Four gas turbine engines power the 9,238-ton ships to speeds in excess of 30 knots. As the U.S. Navy's first Aegis shipbuilder, Ingalls also delivered 19 ships in the 27-ship TICONDEROGA (CG 47) Class of guided missile cruisers.

Litton Ingalls Shipbuilding, along with Litton Avondale Industries in metro New Orleans, Louisiana, is part of Litton Ship Systems (LSS), one of the nation’s leading full service systems companies for the design, engineering, construction, and life cycle support of major combatant vessels for the U.S. Navy, U.S. Coast Guard and international navies, and for commercial vessels of all types.

Litton Industries is also a 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, and, including the acquisition of Avondale, Litton is expected to have more than $5.5 billion in revenue.