NEWPORT NEWS SHIPBUILDING ANNOUNCES SHAREHOLDER DIVIDEND FOR FOURTH QUARTER

January 16, 1997, NEWPORT NEWS, Va. -- Newport News Shipbuilding (NYSE: NNS) announced today that its board of directors has declared a dividend of $0.04 per share on the issued and outstanding common stock of the company.

The dividend will be paid on or about February 15, 1997, to stockholders-of-record on January 27, 1997. This is the first quarterly dividend to be paid by Newport News Shipbuilding since it was spun off from its former parent company, Tenneco, in December 1996.

Newport News Shipbuilding is America's largest ship design and construction company. It has produced approximately 800 ships during its 110 years of operations -- including Navy aircraft carriers, submarines and cruisers. The company is currently building the nuclear-powered aircraft carriers Harry S. Truman (CVN 75) and Ronald Reagan (CVN 76) and has begun work in preparation for construction of the Navy's New Attack Submarine. Its 1995 revenues totaled $1.8 billion, with operating income of $157 million. The current backlog is approximately $3.5 billion. The workforce numbers 18,000, making it Virginia's largest private employer.