Wednesday, January 7, 2009

Northrop Grumman Announces Organization and Leadership Changes to Position for the Future

Northrop Grumman Announces Organization and Leadership Changes to Position for the Future

Organization and Leadership Changes Will Strengthen Customer Alignment, Drive Performance and Improve Cost Competitiveness

* Integrated Systems and Space Technology sectors combined to form
new Aerospace Systems sector, led by Gary W. Ervin

* Information Technology and Mission Systems sectors combined to
form new Information Systems sector, led by Linda A. Mills

* Alexis C. Livanos named Chief Technology Officer

* Philip A. Teel to retire

LOS ANGELES -- Jan. 7, 2009 -- Northrop Grumman Corporation (NYSE:NOC) today announced several structural actions to strengthen alignment with its customers, improve the company's program performance and growth potential, and enhance its cost competitiveness. These actions, effective immediately, include streamlining its organizational structure, reducing the number of sectors from seven to five. The five sectors will be Aerospace Systems; Electronic Systems; Information Systems; Shipbuilding; and Technical Services.

"These actions are critical steps in shaping our future," said Ronald D. Sugar, Northrop Grumman chairman and chief executive officer. "Key to our success is the early anticipation of changes in our markets, and then the adjustment of our business structure to better position us to address our customers' needs and improve our competitiveness. These actions build on last year's realignment of our shipbuilding business into a single sector and the establishment of a centralized Enterprise Shared Services organization."

In merging the Integrated Systems and Space Technology sectors, Northrop Grumman creates an approximately $10 billion business, which is a premier provider of manned and unmanned aircraft, space systems, missile systems and advanced technologies critical to our nation's security. Gary W. Ervin, currently corporate vice president and president of the Integrated Systems sector, will lead Northrop Grumman Aerospace Systems, bringing nearly thirty years of aerospace experience, from both within Northrop Grumman and outside the company.

The new Information Systems sector, which combines the Information Technology and Mission Systems sectors, is an approximately $10 billion leading global provider of advanced solutions for defense, intelligence, civil agency and commercial customers. In leading Northrop Grumman Information Systems, Linda A. Mills, currently corporate vice president and president of the Information Technology sector, draws from her significant leadership experience within both the Mission Systems and Information Technology sectors over her nearly thirty years with the company.

"Gary Ervin's demonstrated leadership, customer focus, technology depth and manufacturing experience will serve us well as leader of our new Aerospace Systems sector," Sugar said. "Linda Mills' proven track record, broad customer experience in the areas served by the sector and deep understanding of the systems integration and IT capabilities of the business make her ideally suited to serve as president of the Information Systems sector."

In recognizing the increasing importance of technological innovation in positioning Northrop Grumman for the future, the company has named Alexis C. Livanos corporate vice president and chief technology officer. "As chief technology officer and member of the company's Corporate Policy Council, Alexis Livanos will increase our focus on developing new technologies for our customers' future needs," Sugar said. "Dr. Livanos brings an extensive background in advanced technology development and insertion into operational systems."

Philip A. Teel, corporate vice president and president of the Mission Systems sector, has decided to retire from the company, effective Jan. 31. He will serve as corporate vice president reporting to Sugar and will assist with the sector transition until his departure. "Philip Teel has provided outstanding leadership as president of two of our sectors," Sugar said. "We thank him for his many contributions over nearly a decade of leadership and wish him well in his retirement."

Northrop Grumman Corporation is a leading global security company whose 120,000 employees provide innovative systems, products, and solutions in aerospace, electronics, information systems, shipbuilding and technical services to government and commercial customers worldwide.

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