NEWPORT NEWS SHIPBUILDING JOINS FORCES WITH SAP AND OTHER MARKET LEADERS TO ESTABLISH A SHARED DATA ENVIRONMENT

NEWPORT NEWS, Va., Sept. 29, 1997 –Today, Newport News Shipbuilding (NYSE: NNS) announced that it has formed a multi-year partnership with SAP America Inc., IBM Global Services, Aspect Development and i2 Technologies, Inc. to create and implement a Shared Data Environment at America’s largest private shipbuilding company.

The creation and implementation of a Shared Data Environment is one result of a Process Innovation program kicked-off by NNS in early 1996. Dubbed "Full Speed Ahead = 2X," the program is designed to reduce cycle times and improve processes throughout the company. Benefits anticipated from the project are: improved material control, enhanced sequencing of work, improved information research and legacy systems cost avoidance.

"This project will make us more productive and strengthen our competitive position in all aspects of our business," said NNS Executive Vice President Tom Schievelbein. "The implementation of this project and our partnership with the preeminent leaders in the field of Enterprise Resource Planning cement Newport News Shipbuilding’s position as the most technologically advanced shipbuilder in the world."

A team of 100 people representing the five companies will further implement the improvements developed in the Process Innovation project by replacing existing systems with state-of-the-art commercial software that will standardize the shipyard’s business processes.

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 eight 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 $3.1 billion. The workforce numbers 18,000, making it Virginia's largest private employer.

Founded in 1972, SAP (Systems Applications and Products in Data Processing) in Walldorf, Germany, is the leading global provider of client/server business applications solutions. Commanding a 31 percent share of the worldwide client/server enterprise application software market, SAP is the number one vendor of standard business application software and the fourth largest independent software supplier in the world.

IBM Global Services, with headquarters in Somers, N.Y., provides information technology solutions that enable enterprises to lead in their marketplaces. With 1996 revenue of $22.9 billion and 116,000 professionals in 164 countries, IBM Global Services is the world’s largest and most versatile IT services provider.

Aspect Development Inc., with corporate headquarters in Mountain View, Calif., is the leading worldwide provider of Component and Supplier Management solutions. Aspect develops, markets and supports enterprise client/server software and reference data products that enable customers to improve product development and business processes.

Founded in 1988, i2 Technologies’ planning, optimization and decision support solutions are in use across a variety of industries, including consumer goods, automotive, metals, high tech and electronics. The company is headquartered in Irving, Tex., has approximately 800 employees and maintains offices worldwide. i2 was ranked number eight on Business Week’s 1997 list of 100 "Hot Growth Companies."