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Copyright 2006 Northrop Grumman Corporation0

Northrop Grumman 2006 Institutional Investor Conference

November 9, 2006

Gaston KentVice President, Investor RelationsNorthrop Grumman Corporation


Certain statements and assumptions in these presentations and materials contain or are based on “forward-looking” information. Such “forward-looking” information includes, among other things, projected deliveries,expected funding for various programs, future effective income tax rates, financial guidance and estimated amounts regarding sales, segment operating margin, pension expense, employer contributions under pension plans and medical and life benefits plans, cash flow and earnings per share, and is subject to numerous assumptions and uncertainties, many of which are outside Northrop Grumman’s control. These include Northrop Grumman’s assumptions with respect to future revenues, expected program performance and cash flows, returns on pension plan assets and variability of pension actuarial and related assumptions, the outcome of litigation and appeals, environmental remediation, divestitures of businesses, successful reduction of debt, successful negotiation of contracts with labor unions, effective tax rates and timing and amounts of tax payments, and anticipated costs of capital investments, among other things. Northrop Grumman’s operations are subject to various additional risks and uncertainties resulting from its position as a supplier, either directly or as subcontractor or team member, to the U.S. Government and its agencies as well as to foreign governments and agencies; actual outcomes are dependent upon various factors, including, without limitation, Northrop Grumman’s successful performance of internal plans; government customers’ budgetary constraints; customer changes in short-range and long-range plans; domestic and international competition in both the defense and commercial areas; product performance; continued development and acceptance of new products and, in connection with any fixed price development programs, controlling cost growth in meeting production specifications and delivery rates; performance issues with key suppliers and subcontractors; government import and export policies; acquisition or termination of government contracts; the outcome of political and legal processes and of the assertion or prosecution of potential substantial claims by or on behalf of a U.S. government customer; natural disasters, and any associated amounts and timing of recoveries under insurance contracts, availability of materials and supplies, continuation of the supply chain, contractual performance relief and the application of cost sharing terms, impacts of timing of cash receipts and the availability of other mitigating elements; terrorist acts; legal, financial and governmental risks related to international transactions and global needs for military aircraft, military and civilian electronic systems and support, information technology, naval vessels, space systems, technical services and related technologies, as well as other economic, political and technological risks and uncertainties and other risk factors set out in Northrop Grumman’s filings from time to time with the Securities and Exchange Commission, including, without limitation, Northrop Grumman reports on Form 10-K and Form 10-Q.

Safe Harbor Statement


Presentation Format

GuidanceEffective 1/1/07 Radio Systems business will be transferred from Space Technology to Mission SystemsReported results for Q4 2006 & Full Year 2006 will not reflect the transferGuidance does not reflect the changeGuidance does not include Essex

Segment results 2003 - 2005Presented on a pro forma basis reflecting

Previously announced organizational realignmentsTransfer of Radio Systems businessAdoption of dual-margin recognition on inter-segment sales

Copyright 2006 Northrop Grumman Corporation1 110906 Investor Conf. Rev N_KLH

The Leadership Team

Bob HelmCorp VP

Bus Dev &Govt Relations

Jim O’NeillCorp VP & President

InformationTechnology

MissionSystems

Jerry AgeeCorp VP & President

Jim CameronCorp VP & President

TechnicalServices

Information & Services

Jim PittsCorp VP & President

Electronic Systems

Electronics

Mike PettersCorp VP & President

NewportNews

Phil TeelCorp VP & President

ShipSystems

Ships

Burks TerryCorp VP &

General Counsel

Law

Ian ZiskinCorp VP & Chief

HR & Admin Officer

HR &Administration

Rosanne O'BrienCorp VP

Communications

Space Technology

Alexis LivanosCorp VP & President

Scott SeymourCorp VP & President

Integrated Systems

Aerospace

Ron SugarChairman & CEO

Wes BushPresident& CFO

The Right Team For Our StrategyThe Right Team For Our Strategy


Electronics

Operating Margin

1 Non-GAAP Metric - see reconciliation and definition on pages 25 & 262 Dependent on long-term business mix

9+High 8Low 8Total Operating Margin

~10Low 9Low 9Segment OM1

9+Mid 8~7Ships

~12High 11Mid to High 11Electronics

9-10~9Low 9Aerospace

8-9~8Low 8Information & Services

Operating Margin %

Long-TermMargin

Opportunity2

2007E2006E

$31-32~$30.2Total

~10%~$5Ships

~5%~$6.6Electronics

~(5)%~$9Aerospace

8-10%~$11I & S

2006E ($B) 2007EGrowth

Growth


Electronic Systems Overview

November 9, 2006

James F. PittsPresidentNorthrop Grumman Electronic Systems

2006 Institutional Investor Conference


Electronic Systems … $6.6B 2006E Sales

… World Class Solution Provider … World Class Financial Performance

Space Sensors

Ground & SoldierSystems

Airborne Sensors& Self-Protection

Systems

Maritime & Underseas Systems

International & Large

Infrastructure Solutions


Positioned for shifting budget prioritiesPositioned for shifting budget priorities

Strong & Diversified Portfolio …DoD budget trends

Upgrades balanced with new startsAdapting products to GWOT

An evolving marketProtecting core business

Technology insertion Move up value chain

Exploiting international opportunitiesExpanding into adjacent marketsActing with speed

GWOTGWOTGWOT

Peer Competitor

Peer Peer CompetitorCompetitor

Global SecurityGlobal Global

SecuritySecurity

Undersea to Outer SpaceUndersea to Undersea to Outer SpaceOuter Space

DoD55%

Non-DoD20%

International25%


Strong Performance Focus

Top Line…Acquisitions up 17% from 2005

Solid revenue projection

Bottom Line…Retiring risk

Expanding margins

Improving processes

Cash…Improving cash conversion

Reducing capital

Business imperatives …– Leadership & people

– Teamwork & collaboration

– Continuous improvement

– Strategic thinking for growth

4

5

6

7

8

2003 2004 2005 2006E 2007E

Sale

s $B

0%

2%

4%

6%

8%

10%

12%

14%

OM

%


Electronics Systems …

Strong leadership focusImproving top line growthStrong, diversified portfolioExpanding into adjacent markets Exploiting international marketplaceAligning to customer missionsImproving margins and cash performance

ScholarshipScholarship

Learning TeamsLearning TeamsMentoringMentoring

Resource GroupsResource Groups

Delivering shareholder valueDelivering shareholder value

Economy & Finance

northrop grumman Electronics