Press Release

DOJ and Northrop Grumman Agree to TRW Acquisition Timeline

By SpaceRef Editor
October 16, 2002
Filed under , ,

Northrop Grumman today announced that it continues to anticipate a
fourth quarter 2002 closing of its proposed acquisition of TRW Inc.
. A 30-day waiting period related to a Second Request for
Information under the Hart-Scott-Rodino Anti-Trust Improvements Act of 1976
expired at midnight Oct. 15. The Justice Department, however, continues to
review the proposed transaction.

Northrop Grumman has agreed with the Justice Department not to close the
proposed acquisition without providing the Department with proper notice.
Such notice will be given no sooner than 10 business days prior to the earlier
of Northrop Grumman’s or TRW’s shareholders’ meeting regarding the
acquisition. According to the company, the agreement is not unusual, and
allows the Department of Justice sufficient time to conclude an orderly review
of the transaction.

Northrop Grumman and TRW jointly announced July 1 that they had entered
into a definitive merger agreement. Under the terms of the agreement,
Northrop Grumman will acquire TRW for $60 per share in common stock in a
transaction valued at approximately $7.8 billion, plus the assumption of TRW’s
net debt at the time of closing.

The exact exchange ratio will be determined by dividing $60 by the average
of the reported closing sale prices per share of Northrop Grumman common stock
on the New York Stock Exchange for the five consecutive trading days ending on
and including the second trading day prior to the closing of the merger. The
exchange ratio will not be less than 0.4348 or more than 0.5357 of a Northrop
Grumman share.

Northrop Grumman Corporation is an $18 billion, global defense company
with its worldwide headquarters in Los Angeles. Northrop Grumman provides
technologically advanced, innovative products, services and solutions in
defense and commercial electronics, systems integration, information
technology and nuclear and non-nuclear shipbuilding and systems. With nearly
100,000 employees and operations in 44 states and 25 countries, Northrop
Grumman serves U.S. and international military, government and commercial

Certain statements and assumptions in this release contain or are based on
“forward-looking” information (that Northrop Grumman believes to be within the
definition in the Private Securities Litigation Reform Act of 1995) and
involve risks and uncertainties. Such “forward-looking” information includes,
among other things, the statements above as to the impact of the proposed TRW
Inc. acquisition on revenues and earnings. Such statements are subject to
numerous assumptions and uncertainties, many of which are outside Northrop
Grumman’s control. These include Northrop Grumman’s ability to successfully
integrate its acquisitions, assumptions with respect to future revenues,
expected program performance and cash flows, the outcome of contingencies
including litigation, environmental remediation, divestitures of businesses,
successful negotiation of contracts with labor unions and anticipated costs of
capital investments. Northrop Grumman’s operations are subject to various
additional risks and uncertainties resulting from its position as a supplier,
either directly or as subcontractor or team member, to the U.S. Government and
its agencies as well as to foreign governments and agencies; actual outcomes
are dependent upon factors, including, without limitation, Northrop Grumman’s
successful performance of internal plans; government customers’ budgetary
restraints; customer changes in short-range and long-range plans; domestic and
international competition in both the defense and commercial areas; product
performance; continued development and acceptance of new products; performance
issues with key suppliers and subcontractors; government import and export
policies; acquisition or termination of government contracts; the outcome of
political and legal processes; legal, financial, and governmental risks
related to international transactions and global needs for military aircraft,
military and civilian electronic systems and support, information technology;
naval vessels, space systems and related technologies, as well as other
economic, political and technological risks and uncertainties and other risk
factors set out in Northrop Grumman’s filings from time to time with the
Securities and Exchange Commission, including, without limitation, Northrop
Grumman reports on Form 10-K and Form 10-Q.

Northrop Grumman Corporation filed a registration statement on Form S-4
(File No. 333-83672) with the Securities and Exchange Commission on March 4,
2002 that has been amended to include a joint proxy statement/prospectus
relating to the proposed merger of Northrop Grumman and TRW Inc. The
directors, certain executive officers and other employees and representatives
of Northrop Grumman and TRW Inc. may be deemed to be participants in the
solicitation of proxies for the shareholders meeting relating to the proposed
merger. The joint proxy statement/prospectus contains important information
regarding such potential participants and other important matters which should
be read by Northrop Grumman and TRW shareholders before making any decisions
regarding the merger. Copies of joint proxy statement/prospectus, and any
amendments or supplements thereto, may be obtained without charge at the SEC’s
website at as they become available.

SpaceRef staff editor.