NEWPORT NEWS SHIPBUILDING ANNOUNCES REGULAR SHAREHOLDER DIVIDEND

NEWPORT NEWS, Va., October 10, 1997 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 October 31, 1997, to shareholders of record on October 20, 1997. This is the fourth consecutive regular dividend declared since Newport News became an independent company in December 1996.

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.