INGALLS, TEAMMATES BEGIN WORK IN U.S.C.G. DEEPWATER PROGRAM

PASCAGOULA, Mississippi, August 20, 1998 — The U.S. Coast Guard today announced that a team that includes Ingalls Shipbuilding division of Litton Industries is one of three nationwide industrial teams to be awarded $7 million contracts to begin Phase I work in the Coast Guard’s Integrated Deepwater Program.

The Coast Guard’s current deepwater fleet of cutters, patrol boats and support aircraft is facing retirement in the near future. In this 16-month first phase of the Integrated Deepwater Program, competing in-depth studies will be performed by the three industry teams that will assist the Coast Guard in making decisions on how many, and what type of, new ships and aircraft are to be built and what type of Command and Control network will be used to replace retiring assets.

"Ingalls and its teammates are most pleased to be included in this major Coast Guard program," said Ingalls President Jerry St. Pe’. "The Coast Guard’s unique approach to this major upgrade program will not only improve the quality of the product that is delivered, but will also reduce the life cycle costs of operating the ships, aircraft and equipment."

The Ingalls team is led by Lockheed Martin, and includes several other Litton Divisions, including PRC, Data Systems and Sperry Marine, as well as M. Rosenblatt & Son, Inc., and Bell Helicopter Textron.

Following this stage of the competition, the Coast Guard will award additional contracts to competing teams for Phase II concept designs for the Integrated Deepwater Program.

The Coast Guard has projected the total value of the program, involving as many as 30 new vessels to be built beginning as early as 2002, to be in excess of $7 billion over the next 20 years.