Northrop Grumman Buys 6.5 Million Shares in Accelerated Share Repurchase

LOS ANGELES, July 31 /PRNewswire-FirstCall/ -- Northrop Grumman Corporation has entered into a $500 million accelerated share repurchase (ASR) agreement with JPMorgan Chase Bank, NA, London Branch (JPMorgan Chase).

Under the accelerated share repurchase agreement, the company repurchased 6,483,402 shares of Northrop Grumman common stock from JPMorgan Chase at a price per share of $77.12. JPMorgan Chase plans to purchase an equivalent number of shares in the open market, and Northrop Grumman may receive or be required to remit a price adjustment based upon the volume weighted average price of Northrop Grumman common shares purchased by JPMorgan Chase.

Upon completion of the repurchase agreement, and subject to the price adjustment noted above, the company expects to have less than $100 million remaining of the $1 billion share repurchase authorization announced in December 2006.

Including today's ASR agreement, the company has retired 14.5 million shares of its common stock in 2007 for $1.1 billion, and in total, has repurchased approximately 67.6 million shares of its common stock for $4.1 billion since it began repurchasing its shares in August 2003.

About Northrop Grumman

Northrop Grumman Corporation is a $30 billion global defense and technology company whose 120,000 employees provide innovative systems, products, and solutions in information and services, electronics, aerospace and shipbuilding to government and commercial customers worldwide. Note: Certain statements and assumptions in this release contain or are based on "forward looking" information that Northrop Grumman Corporation (the "Company") believes to be within the definition of the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties, and include among others, statements in the future tense, and all statements accompanied by terms such as "plans," "expects," "may" or variations thereof. This information reflects the Company's best estimates when made, but the Company expressly disclaims any duty to update this information if new data become available or estimates change after the date of this release. A complete list of these risks and uncertainties is set out in the company's filings with the Securities and Exchange Commission, including without limitation, on Form 10-K and Form 10-Q.

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