Northrop Grumman Responds To Inaccurate Comments Concerning The U.S. Air Force KC-45A Award Decision

Northrop Grumman Responds To Inaccurate Comments Concerning The U.S. Air Force KC-45A Award Decision

LOS ANGELES - March 5, 2008 - When the process to replace America's aging fleet of KC-135 aerial refueling tankers began in 2005, the U.S. Air Force made clear that it wanted a full and fair competition. Northrop Grumman Corporation (NYSE:NOC) entered the competition with the understanding that if its proposal provided the best value to the warfighter and the American taxpayer, it could win the contract.

Since the Air Force's decision to award Northrop Grumman the KC-45A contract was announced, numerous erroneous comments have been repeated in the media and in Congress. In response, the company wants to make the following points clear:



Industrial Base
* The Northrop Grumman KC-45A tanker program will create a new
aerospace manufacturing corridor in the southeastern United States.
* The KC-45A program helps return competitiveness to the U.S.
aerospace industry.

Jobs
* The Northrop Grumman KC-45A tanker program does not transfer any
jobs from the United States to France or any other foreign country.
* The KC-45A tanker will support more than 25,000 jobs in the United
States.
* The KC-45A U.S. supplier base will include 230 companies in 49
states.
* Assembly and militarization of the KC-45A tanker will take place in
Mobile, Ala., resulting in the creation of approximately 2,000 direct
jobs in the United States.

Acquisition Process
* The KC-45A competition underwent the most rigorous, transparent
acquisition process in U.S. Department of Defense history.
* Throughout the process, both competitors in the KC-45A acquisition
hailed the Air Force for conducting a fair and open competition.

Foreign Content
* All modern jetliners are built from a global supplier base and the
two entrants in the KC-45A competition are no exception. The Boeing
tanker includes parts manufactured in Japan, United Kingdom, Canada
and Italy. The Northrop Grumman tanker includes parts built in the
United Kingdom, Germany, Spain and France.
* The Northrop Grumman KC-45A will include approximately 60 percent
U.S. content. It is America's tanker.

Foreign Suppliers to U.S. Military Programs
* There are numerous examples of transatlantic cooperation on vital
U.S. military programs. Foreign suppliers currently play essential
roles in the F-35 Joint Strike Fighter and the VH-71 Presidential
Helicopter. In fact, on the C-27J Joint Cargo Aircraft program,
Boeing is responsible for producing the Alenia Aeronautica (Italy)
aircraft in Jacksonville, Fla.
* No sensitive military technology will be exported to Europe. For
the KC-45A program, a commercial A330 jetliner will be assembled by
American workers in EADS's facility in Mobile. The aircraft will
then undergo military conversion in an adjacent Northrop Grumman
facility. All of the KC-45A's critical military technology will be
added by an American company, Northrop Grumman, in America, in
Mobile Ala.