Litton Forms New Company To Provide Full Range OfShipbuilding-Related Services.

Business Editors

WOODLAND HILLS, Calif.--(BUSINESS WIRE)--March 2, 2000

Continuing its business strategy to become the marine industry's full-service leader, Litton Industries (NYSE:LIT) today announced the formation of a new company, the Litton Ship Systems Full Service Center

Operating as a stand-alone business within the existing Litton Ship Systems (LSS) organization, with headquarters in Pascagoula, Miss., LSS FSC will provide its customers a full range of research and development, design analysis and life cycle support services. These services will be offered in conjunction with the two LSS shipyards -- Litton Avondale Industries in metro New Orleans, Louisiana, and Litton Ingalls Shipbuilding in Pascagoula -- as well as a worldwide network of fleet support offices already in place.

"Through our two shipyards, Litton is already one of the nation's leading 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, as well as commercial vessels of all types," said Michael R. Brown, Litton chairman, president and chief executive officer.

"In forming this company, Litton is taking the next step in broadening our ability as a significant industry partner in R&D, as a prime contractor for design and production, and as a single point of contact for support services throughout the operational lifetime of a single ship or a fleet of vessels," Brown stated.

"This new company supplements Litton's well-positioned core businesses, enabling Litton Ship Systems to meet the full-service contractor needs of commercial and international customers, as well as every non-nuclear full-service contractor requirement of the U.S. Navy, Marine Corps and Coast Guard," said Jerry St. Pe, Litton executive vice president and chief operating officer of Litton Ship Systems.

"As a lead shipbuilder for several current classes of U.S. Navy surface combatant and amphibious assault ships, Litton Ingalls and Litton Avondale have a demonstrated expertise as full-service contractors.

"In forming LSS FSC, we move to the `next level' of full-service support, offering customers a wide range of technical knowledge and a worldwide network from which to expand our ongoing efforts in R&D, fleet support in Navy homeports, and in the Navy's future conversion, modernization and repair needs. Additionally, this new company provides an exceptional platform from which to support such critical Navy programs as DD 21, LPD 17 and T-ADC(X).

"As our commercial and military customers continue to change the way they acquire products and services, they have stated their desire for greater industry involvement in all phases of a program. Forming our new Litton Ship Systems Full Service Center is a key element of Litton's response to this customer need," concluded St. Pe.

Cavaiola Named President of Litton Ship Systems Full Service

Center

St. Pe announced that Dr. Lawrence J. Cavaiola, age 52, has been named president of the new Litton Ship Systems Full Service Center. Cavaiola joined Litton Ingalls in 1998 as vice president for government relations and strategic development, and prior to the new assignment was named LSS vice president for strategic and business development.

Cavaiola graduated with distinction from the U.S. Naval Academy, Annapolis, Md., in 1969. He holds a Ph.D. in operations research from The Johns Hopkins University, Baltimore. Prior to joining Litton Ingalls, he served in senior staff positions with the U.S. Congress, in the Department of Defense, and in industry. He served for 26 years on active and reserve service with the U.S. Navy, retiring as a Captain.

Litton is one of the nation's leading shipbuilders for the U.S. Navy and the largest builder of non-nuclear ships. Litton designs, builds, and overhauls surface ships for government and commercial customers, worldwide.

The company is 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.

With headquarters in Woodland Hills, Calif., the company has more than 40,000 employees, and is expected to have more than $5.5 billion revenue. For more information, visit Litton's Web site at www.litton.com.