NEWPORT NEWS SHIPBUILDING HOLDS FIRST ANNUAL SHAREHOLDERS MEETING AND APPROVES FOUR PROPOSALS

May 16, 1997, NEWPORT NEWS, Va. -- America's largest ship design and construction company, Newport News Shipbuilding (NYSE: NNS) held its first annual Shareholders Meeting today in Newport News, Va. Business conducted during the meeting included shareholder approval of several proposals. These proposals included:

Extension of terms through the year 2000 for three members of the Board of Directors: Mr. William P. Fricks, Chairman and CEO, Newport News Shipbuilding; Mr. Stephen R. Wilson, Executive Vice President and Chief Financial Officer, Readers' Digest Association; and Mr. William R. Harvey, President, Hampton University.

Amendments to the company's Stock Ownership Plan and Employee Stock Purchase Plan to authorize shares to fund the plans through 1998.

Ratification of the appointment of Arthur Andersen as the independent auditors of the company for 1997.

Newport News Shipbuilding is America's largest ship design and construction company. It has produced approximately 800 ships during its 111 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. It is also building nine Double Eagle product tankers. Its 1996 revenues totaled $1.87 billion, with earnings before interest and taxes of $140 million. The current backlog is approximately $3.3 billion. The workforce numbers 18,000, making it Virginia's largest private employer.