Frost & Sullivan Names Northrop Grumman Federal Government IT Vertical

    Business Editors/Government Writers

    SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Jan. 12, 2005--Frost & Sullivan will present Northrop Grumman Corporation (NYSE:NOC) with the 2005 U.S. Federal Government IT Vertical Market Company of the Year Award at tonight's Excellence in Information & Communications Technologies Awards Banquet for its outstanding service offerings in the government IT vertical market.
    Today, Northrop Grumman is one of the top two participants in this market. The company's offerings in the federal government IT vertical market encompass areas such as: homeland security solutions; secure network operations; systems integration; command, control, communications, computers, intelligence, surveillance, and reconnaissance; secure wireless; managed services and sourcing solutions; human services; public health; public safety; criminal justice; and transportation management solutions.
    "The federal market is consolidating and most of the participants are looking at tapping the potential in the state and local markets," notes Frost & Sullivan Research Analyst Roopa Shree. "Through a series of mergers and acquisitions, Northrop Grumman has successfully aligned the resulting solutions and services carefully in the government market to carve a commendable position for itself in the federal, state and local vertical."
    In 2004, the firm won numerous contracts from the U.S. Air Force, U.S. Army, Department of Homeland Security, and others. For instance, the U.S. Air Force has commissioned IT products and services for its Network Centric Solutions program with an overall ceiling of $9 billion. Additionally, the State Department selected Northrop Grumman to modernize its messaging and archive retrieval system under a potential $237 million contract, and the Department of Homeland Security awarded Northrop Grumman a $337 million task order to develop a high-speed, secure data network that will be key to enabling intelligence data to flow between federal, state and local law enforcement. These prestigious contracts reinforce Northrop Grumman's position as a leading IT services provider in the government IT market.
    Northrop Grumman has numerous 'firsts' to its credit for technological innovation in the defense industry. The wireless "tactical Internet" system called Force XXI Battle Command Brigade and Below - Blue Force Tracking developed by the company and used on the battlefield during Operation Iraqi Freedom won the award for 'Most Innovative U.S. Government Program' by the Institute for Defense & Government Advancement.
    The company's Space Technology sector attained a CMMI(r) Level 5 maturity rating for software against the latest Software Engineering Institute Capability Maturity Model Integration (CMMI) standard, enabling it to become the only company to earn such high ratings in the defense and IT industries. To date, with 16 CMMI Level 5 ratings, Northrop Grumman has earned more than any other company in the IT and defense industries. Fewer than 20 companies worldwide have achieved CMMI Level 5.
    Northrop Grumman continues to proactively partner with other leading vendors in the market to bring the right mix of solutions and services to the customer. It is also the leading provider on General Services Administration schedules.
    Frost & Sullivan presents this Award each year to a company that has demonstrated excellence in all operations, exhibiting outstanding management, consistent growth, and positive social and economic impact on local and national communities and customers in its industry. It recognizes exceptional customer service and the ability to combine technology and successful strategic initiatives. The recipient has also superior revenue growth skills through significant gains in the marketplace.
    Held in Scottsdale, Frost & Sullivan's 2005 Excellence in Information & Communications Technologies Awards Banquet honors world-class companies for outstanding performance and achievements in the information & communications technologies markets. An annual event, the banquet recognizes the quality and merit of distinguished individuals and companies.

    About Northrop Grumman Corporation

    Northrop Grumman Corporation is a global defense company headquartered in Los Angeles, Calif. Northrop Grumman provides technologically advanced, innovative products, services and solutions in systems integration, defense electronics, information technology, advanced aircraft, shipbuilding and space technology. With 125,000 employees, and operations in all 50 states and 25 countries, Northrop Grumman serves U.S. and international military, government and commercial customers.

    About Frost & Sullivan

    Frost & Sullivan, a global growth consulting company founded in 1961, partners with clients to create value through innovative growth strategies. The foundation of this partnership approach is our Growth Partnership Services platform, whereby we provide industry research, marketing strategies, consulting, and training to our clients to help grow their business. A key benefit that Frost & Sullivan brings to its clients is a global perspective on a broad range of industries, markets, technologies, econometrics, and demographics. With a client list that includes Global 1000 companies, emerging companies, as well as the investment community, Frost & Sullivan has evolved into one of the premier growth consulting companies in the world. For more information, visit www.frost.com.

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CONTACT: Frost & Sullivan, San Antonio Stacie Jones, 210-247-2450 Stacie.Jones@frost.com or Northrop Grumman Corporation Juli Ballesteros, 703-713-4675 juli.ballesteros@ngc.com

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