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NGC Stands Ready to Support Air Force Tanker Decision

GAO Analysis Does Not Alter the Air Force Finding that the KC-45 is the Superior Tanker

(Washington, June 25, 2008) -- Northrop Grumman Corporation (NYSE:NOC) said, today, that it continues to support the United States Air Force and looks forward to its next steps regarding the direction of the KC-45 tanker program. This follows today's public release of the full Government Accountability Office (GAO) analysis of the original tanker contract award to Northrop Grumman.

"The document makes clear that the GAO's issues with the contract do not reflect on the tankers' capabilities. In fact, in several areas key to the selection decision the GAO found no basis to object to the Air Force evaluation," said Paul Meyer, Northrop Grumman vice president of Air Mobility Systems and KC-45 program manager. "We look forward to a prompt assessment from the Air Force concerning what happens next."

On Feb. 29, the Air Force selected Northrop Grumman to provide the next generation of aerial refueling tanker, the KC-45. The Air Force has an urgent need to replace its aging tanker fleet.

"The KC-45 is needed now, and Northrop Grumman is ready now to provide it," said Meyer. "Should the Air Force choose to proceed with our existing contract, we are ready to get to work. Northrop Grumman offered the superior tanker and nothing in the GAO analysis contradicts this essential truth.

"Northrop Grumman remains the only company in this competition that has built, tested and flown its plane. In addition, our refueling boom has just completed its 100th flight test. At this point, our competitor has offered only a paper plane," Meyer said. "For our men and women in uniform, the most important thing is to field the new tanker as soon as possible. Only Northrop Grumman is ready to do that."

Source : Northrop Grumman Corporation

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