Labor Contract Communication

To: All Employees August 26, 2008

Subject: Labor Contract Communication

You may have seen the notice posted on our bulletin boards announcing the International Association of Machinists and Aerospace Workers plans to meet on Thursday, August 28 to vote on the Northrop Grumman contract offer for a new Collective Bargaining Agreement. The current Collective Bargaining Agreement expires at midnight on August, 31.

Members of the International Brotherhood of Teamsters, the United Brotherhood of Carpenters, and the International Brotherhood of Electrical Workers will also be voting on the Northrop Grumman contract offer. We are confident that a new agreement will be negotiated and in place for all of our union represented employees prior to the August, 31 deadline.

The company will endeavor to keep all employees informed of this critical matter as progress is made throughout the week. Since the final decision may not be reached until after normal working hours on Thursday, August 28, a toll free phone number and a website will be available for up-to-date information. All employees are required to phone the toll free number or access the website prior to coming to work on Tuesday, September 2nd. The purpose of this is to inform you of any special parking arrangements on Tuesday morning when you arrive at work.

The toll free phone number is 800-995-4318, and the web site address is NorthropGrummanNegotiations.com. Information will be available after Friday, August 29.