1. Copyright 2003 Northrop Grumman Corporation 1 Equipping the Future Force 8 th Annual Expeditionary Warfare Conference Equipping the Future Force 8 th Annual Expeditionary Warfare Conference Ronald D. Sugar Chairman, CEO and President, Northrop Grumman Corporation October 21, 2003

2. Copyright 2003 Northrop Grumman Corporation 2 Most Likely Peace Keeping Terrorism Regional Conflict Major Resurgent Power The Spectrum of Future Conflicts

3. Copyright 2003 Northrop Grumman Corporation 3 France 1966 (Restricted Base Use) Spain/France 1986 (Overflight Denied) Spain 1964, 88 (Transit Rights Denied, Base Lost) Italy 1992-95 (Restricted Base Use) Western Europe 1973 (Base Access and Overflight Denied) Greece/Austria/ Switzerland 1958 (Overflight Denied) Turkey 1975 (Base Lost) Costa Rica 1979 (Base Access Denied) Panama 1999 (Canal & Facilities Relinquished) Iran 1979 (Access Agreements Terminated) Persian Gulf 1980-90, 96-98 (Base Access Problematic, Base Access Delayed; Use for Offensive Purposes Denied) Saudi Arabia 1958, 62, 94, 01, 03 (Base Access Denied; Overflight Denied, Bases Lost, Base Access Delayed) Somalia 1990 (Supply Storage Rights Terminated) Morocco 1963 (Bases Lost) Ethiopia 1978 (Bases Lost) Liberia 1990 (Access Rights Terminated) Australia 1947-48 (Basing Rights Denied) Okinawa 1996 (Base Constraints) Vietnam 1965-66, 75 (Physical Base Limitations, Bases Lost) Philippines 1991 (Bases Lost) Thailand 1973-74, 75 (Bases Lost, Base Use Restricted)) Libya 1970 (Bases Lost) The Access Gap Turkey 2003 Denied use of facilities for Operation Iraqi Freedom in addition to denying 4 th ID access for assault into Turkey. “Our forces in the next century must be agile, lethal, readily deployable, and require a minimum of logistical support. We must be able to project out power over long distances, in days or weeks, rather than months.” -- President George W. Bush

4. Copyright 2003 Northrop Grumman Corporation 4 GLOBAL FORCE PROJECTION / PRECISION STRIKE PERSISTENT SURVEILLANCE TARGETING SURVIVABILITY INFORMATION WARFARE MISSILE DEFENSE HOMELAND SECURITY 21st Century National Security Needs

5. Copyright 2003 Northrop Grumman Corporation 5 Northrop Grumman’s Transformation Strategy  Anticipate the future of war-fighting  Create/acquire the enabling technologies  Integrate and motivate superior human talent  Drive operating performance

6. Copyright 2003 Northrop Grumman Corporation 6 –First-tier defense contractor –$25B+ Sales, 120,000 employees, 25 countries –Largest military shipbuilder –Largest federal IT provider –Premier aircraft, space and missile defense contractor –Premier airborne radar & electronic warfare systems provider Northrop Grumman Today Focused on network-centric warfare systems across all military services

7. Copyright 2003 Northrop Grumman Corporation 7 Equipping the Future Force

8. Copyright 2003 Northrop Grumman Corporation 8 B-2 Stealth Bomber Delivering 80 independently targeted JDAMs

9. Copyright 2003 Northrop Grumman Corporation 9 F-35 Joint Strike Fighter (STOVL)

10. Copyright 2003 Northrop Grumman Corporation 10 E-2C Advanced Hawkeye

11. Copyright 2003 Northrop Grumman Corporation 11 EA-6B Prowler (ICAP III)

12. Copyright 2003 Northrop Grumman Corporation 12 Joint Unmanned Combat Air System (J-UCAS)

13. Copyright 2003 Northrop Grumman Corporation 13 Global Hawk

14. Copyright 2003 Northrop Grumman Corporation 14 Fire Scout

15. Copyright 2003 Northrop Grumman Corporation 15 E-10A Multi-sensor Command and Control Aircraft (MC2A)

16. Copyright 2003 Northrop Grumman Corporation 16 Space Based Radar

17. Copyright 2003 Northrop Grumman Corporation 17 Advanced EHF

18. Copyright 2003 Northrop Grumman Corporation 18 LPD 17 Amphibious Assault Ship

19. Copyright 2003 Northrop Grumman Corporation 19 LHA(R) Amphibious Assault Ship

20. Copyright 2003 Northrop Grumman Corporation 20 CVN 21 Next-Generation Carrier

21. Copyright 2003 Northrop Grumman Corporation 21 DD(X) Next-Generation Destroyer

22. Copyright 2003 Northrop Grumman Corporation 22 USCG Deepwater

23. Copyright 2003 Northrop Grumman Corporation 23 Advanced SEAL Delivery System (ASDS)

24. Copyright 2003 Northrop Grumman Corporation 24 FBCB2 — Blue Force Tracking

25. Copyright 2003 Northrop Grumman Corporation 25 Joint Fires Network (JFN)

26. Copyright 2003 Northrop Grumman Corporation 26 Global Command and Control System (GCCS)

27. Copyright 2003 Northrop Grumman Corporation 27 Equipping the Future Force

28. Copyright 2003 Northrop Grumman Corporation 28 The Most Important Asset

29. Copyright 2003 Northrop Grumman Corporation 29