Press Release

Northrop Grumman Reaches Agreement With Justice Department on Acquisition of TRW, Inc.

By SpaceRef Editor
December 10, 2002
Filed under , ,

Northrop Grumman
Corporation announced today that it has agreed on the essential
terms of a consent decree with the United States Department of Justice that
should allow the company to promptly close its acquisition of TRW, Inc.
after shareholders of both companies approve the transaction at
separate meetings Dec. 11, 2002.

Key provisions of the consent decree are intended to assure that the
merger will not impede fair and open competition related to certain electronic
satellite payloads. As expected, the consent decree does not require the
divestiture of any businesses and will permit Northrop Grumman to operate its
businesses and those of TRW as planned.

The European Union antitrust authority approved the transaction Oct. 16,

“We are pleased to complete another significant milestone in our planned
acquisition of TRW,” said Kent Kresa, Northrop Grumman chairman and chief
executive officer. “Northrop Grumman has always championed open and fair
competition and this agreement reflects our continued commitment to this
principle. This combination will produce a strong competitor in complex space
systems important to future defense requirements.”

On July 1, 2002, Northrop Grumman and TRW entered into a definitive
agreement. The agreement stated that Northrop Grumman would acquire TRW in
exchange for Northrop Grumman common stock. 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. Assuming a
closing date of Dec. 11, the five-day trading period commenced Dec. 3.

Northrop Grumman Corporation is a $17 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
96,000 employees and operations in 44 states and 25 countries, Northrop
Grumman serves U.S. and international military, government and commercial


Certain statements made or implied in this release contain or are based
upon forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, and in particular, statements that are in the
future tense or that imply events that have not yet occurred, are forward-
looking, and actual outcomes may differ materially from those described or
anticipated in this release. Other risks associated with the TRW Inc.
acquisition may be found in Northrop Grumman Corporation’s filings with the
SEC, including without limitation, the joint proxy statement/prospectus dated
November 4, 2002 contained in the Registration Statement on Form S-4 described
below, together with all Supplements thereto.

Northrop Grumman filed a registration statement on Form S-4 (File No.
333-83672) with the Securities and Exchange Commission (SEC) 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 shareholder meetings relating to the proposed merger. The
definitive joint proxy statement/prospectus dated November 4, 2002, contains
important information regarding such potential participants and other
important matters that should be read by Northrop Grumman and TRW shareholders
before making any decisions regarding the merger. Copies of the joint proxy
statement/prospectus, and any amendments or supplements thereto, may be
obtained without charge at the SEC’s website at as they become

SpaceRef staff editor.