NEWPORT NEWS SHIPBUILDING ANNOUNCES ODDLOT SHAREOWNER BUY-SELL PROGRAM

Newport News Shipbuilding (NYSE: NNS) today announced a low-cost program through which shareowners with fewer than 100 shares of Newport News Shipbuilding common stock as of January 7, 1997, may purchase additional shares to reach a position of exactly 100 shares or sell all of their eligible shares.

The voluntary program allows participating shareowners to make purchases or sales at a market-based weighted average price per share based on the total shares purchased or sold according to the program. A processing fee of 65 cents per share will be deducted from purchase deposits or sales proceeds (with a maximum charge of $40) to defray the administrative costs of the program. Program materials are scheduled to be mailed to eligible Newport News Shipbuilding shareowners this week.

Newport News Shipbuilding is making the program available because many of its shareowners received fewer than 100 shares of stock in conjunction with the company's December 1996 spin-off from Tenneco Inc. Newport News Shipbuilding shareowners received one share of Newport News Shipbuilding stock for every five shares of Tenneco stock they held. The buy-sell program saves shareowners servicing costs while providing shareowners who own only a few shares with a convenient and inexpensive method of purchasing or selling shares.

Shareholder Communications Corporation, a specialist in the design and implementation of oddlot programs, will administer and manage the program, which is set to expire on February 26, 1997, unless extended.

Newport News Shipbuilding is America's largest ship design and construction company. It has produced approximately 800 ships during it 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.