Northrop Grumman Announces Key Leadership and Organizational Changes

LOS ANGELES, Jan. 14 /PRNewswire-FirstCall/ -- Northrop Grumman Corporation today announced a strategic realignment of several of its operating sectors to enhance the company's support to its customers, better utilize its capabilities and resources and drive operating improvements. The company stated that its two shipbuilding sectors, Newport News and Ship Systems, will be realigned into a single sector called Northrop Grumman Shipbuilding, effective Jan. 28, 2008. In addition, the company is realigning the reporting of its missiles business from its Mission Systems sector to its Space Technology sector, effective July 1, 2008. With this new reporting structure, Mission Systems will focus on the rapidly growing C4ISR business, and the missiles business will be an integrated element of the company's Aerospace business growth strategy.

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C. Michael Petters, currently corporate vice president and president of Newport News, has been elected corporate vice president and president of Northrop Grumman Shipbuilding. Philip A. Teel, currently corporate vice president and president of Ship Systems, has been elected corporate vice president and president of the company's Mission Systems sector effective April 1, 2008. He will succeed Jerry B. Agee who is retiring in August 2008, in keeping with the company's mandatory retirement policy for officers. Following April 1, Agee will continue as a member of Northrop Grumman's Corporate Policy Council on special assignment to Ronald D. Sugar, Northrop Grumman's chairman and chief executive officer, until his retirement.

"This strategic realignment will enhance our world-class military shipbuilding enterprise and provide an integrated interface and full range of capabilities to our customers," Sugar said. "It will enable the company to more effectively utilize our shipbuilding assets and deploy its talented shipbuilders, processes, technologies, production facilities and planned capital investments to meet its customers' needs.

"With the significant progress in the recovery and regeneration of our Gulf Coast shipyards following Hurricane Katrina, the improvements resulting from our investments in our yards, and the continued strength of our nation's military shipbuilding program, this realignment positions the company for the future," Sugar continued.

"Mike Petters brings extensive shipbuilding expertise and broad management experience to his new role as we leverage our capabilities, resources and talent to enhance our shipbuilding powerhouse," Sugar said. "Phil Teel is a seasoned executive whose strong background in systems engineering and C4ISR makes him an excellent successor to Jerry Agee in leading Mission Systems. We look forward to a seamless transition and the continuation of Mission Systems' strong performance following Jerry's retirement. We thank Jerry for his excellent stewardship and integral role in establishing the sector's strategic position."

The realignment and transition process for the new Shipbuilding sector is expected to continue throughout 2008. Petters will assume day-to-day responsibility for the Gulf Coast operations of Shipbuilding and will operate from Pascagoula, Miss., during this transition phase. All current Gulf Coast and Newport News customer interfaces, as well as internal management and financial reporting structures, will remain in place until specific changes are communicated. The company is committed to ensuring a smooth transition with a focus on meeting all its program execution, safety and customer commitments. The company does not anticipate any facility closures or significant reductions in yard employment levels as a result of this realignment.

The missiles business, which includes the ICBM Prime Integration program, the Kinetic Energy Interceptor program and the Missile Engineering Center, will be led by John Clay, vice president and general manager, reporting to Alexis Livanos, corporate vice president and president of Space Technology. The $900 million missiles business employs approximately 750 people and has operations in Utah, Ala., Va., and Calif.

Petters, 48, joined Newport News in 1987 in the submarine construction division. His assignments at Newport News have included nuclear ship design and construction, contracts, human resources and management of the shipbuilding trades, culminating in his election as corporate vice president and president in 2004. Petters graduated from the U.S. Naval Academy in 1982 with a bachelor's degree in physics. He served as an officer aboard the USS George Bancroft before joining the Naval Reserve in 1988. He earned a master's degree in business administration from the College of William and Mary in 1993.

Teel, 59, joined Northrop Grumman in 2000 and was elected corporate vice president and president of Ship Systems in 2005. His leadership during and following the devastating Hurricane Katrina allowed the company to execute a remarkable recovery and regeneration of the Gulf Coast shipyards, including delivery of six warships whose construction was severely disrupted by the storm. Prior to his Ship Systems assignment, Teel was sector vice president, Airborne Early Warning & Electronic Warfare Systems for the company's Integrated Systems sector. He has nearly 30 years of experience in engineering and program management for C4ISR systems. Teel graduated from the Georgia Institute of Technology with a bachelor's degree in aerospace engineering, and from George Washington University with a master's degree in engineering management.

Agee, 64, was elected corporate vice president and president of Mission Systems in 2005. He came to Northrop Grumman in 1987 following a distinguished career in Naval Intelligence, and during his tenure he managed many of the company's C4ISR and missile systems businesses.

Livanos, 59, joined Northrop Grumman in 2003 and has led a number of Northrop Grumman divisions. He was elected corporate vice president and president of Northrop Grumman's Space Technology sector in 2005. Livanos earned a bachelor's degree in mechanical engineering, a master's degree in engineering science, and a Ph.D. in engineering science and physics from the California Institute of Technology.

Northrop Grumman Shipbuilding is the world's leading military shipbuilder, with approximately $5.5 billion in revenues and nearly 40,000 employees. It constructs and overhauls conventionally-powered surface combatants, amphibious and auxiliary ships and nuclear-powered submarines and aircraft carriers. Northrop Grumman's principal shipbuilding operations are located in Va., Miss., La., and Calif., with support operations around the world.

Northrop Grumman Mission Systems, with approximately $5 billion in revenues, is a global integrator of complex, mission-enabling systems and services with approximately 17,000 employees. It is focused on advancing solutions for its defense and intelligence customers through technology leadership in command, control and communications; and intelligence, surveillance and reconnaissance. The sector is headquartered in Reston, Va., with more than 300 locations around the world.

Northrop Grumman Space Technology, with approximately $4 billion in revenues and approximately 9,000 employees, develops a broad range of systems at the leading edge of space and missile systems, defense, and electronics technology and creates sophisticated products that contribute significantly to the nation's security and leadership in science and technology. The sector is headquartered in Redondo Beach, Calif., with facilities in Va., and several other states.

Northrop Grumman Corporation is a $31.5 billion global defense and technology company whose 122,000 employees provide innovative systems, products, and solutions in information and services, electronics, aerospace and shipbuilding to government and commercial customers worldwide.