NEWPORT NEWS SHIPBUILDING ANNOUNCES ACQUISITION OF WEST COAST SHIP REPAIR YARD

• Newport News signs definitive agreement to buy Continental Maritime, a San Diego, California ship repair yard.
• Acquisition provides base to expand Newport News’ aircraft carrier support services to the West Coast.
• Transaction is scheduled to be completed by year end.

NEWPORT NEWS, Va., November 24, 1997 – Newport News Shipbuilding (NYSE: NNS) announced today that it has entered into a definitive agreement to acquire Continental Maritime Industries of San Diego, California. The transaction, which is subject, among other things, to approval by regulatory authorities and a vote of Continental’s Employee Stock Ownership Plan participants, is expected to be closed by year end. Upon completion of the transaction, Continental Maritime will operate as a wholly owned subsidiary of Newport News Shipbuilding focused on repair programs for the U.S. Navy’s West Coast fleet.

"Continental Maritime provides Newport News with exciting opportunities on the West Coast," said William P. Fricks, Chairman and Chief Executive Officer of Newport News. "In addition to being accretive to earnings in 1998, the acquisition enhances our collective ability to deliver high-quality, cost-effective fleet support services to the U.S. Navy."

The acquisition is a key component of Newport News’ strategy to broaden its base of services to the Navy’s nuclear powered aircraft carrier fleet. Newport News will gain an immediate presence in San Diego, the Navy’s primary homeport on the West Coast. Continental also brings an experienced management team that has developed a strong relationship with the U.S. Navy and has established a successful track record in the West Coast ship repair and fleet support markets.

"Simply stated, we are following the nuclear carriers as they move to the San Diego harbor," said Fricks. "The acquisition of a West Coast repair yard of Continental Maritime’s quality and reputation is consistent with our stated strategy to pursue opportunities in U.S. Navy fleet maintenance."

USS John C. Stennis, which is scheduled to arrive in San Diego in the summer of 1998, provides a near-term opportunity for the Newport News-Continental Maritime team to take advantage of the strategy. Stennis, which was built by NNS, will be the first nuclear powered carrier homeported in San Diego.

Commenting on the acquisition, David H. McQueary, President and CEO of Continental Maritime, said, "We could not have found a better strategic partner than Newport News Shipbuilding. This relationship will provide Continental with the capability to expand the services we offer to our U.S. Navy surface ship and aircraft carrier customers in the San Diego harbor. We expect those enhanced services to translate into strong growth opportunities for Continental and its employees."

Newport News Shipbuilding is America’s premier shipbuilding company with annual revenues of approximately $1.8 billion and 18,000 employees. The company is the leader in the design and construction of nuclear powered aircraft carriers and submarines for the U.S. Navy and produces a variety of ships for domestic and international customers.

Continental Maritime is a qualified master ship repair company based in San Diego, California, and is primarily engaged in ship repair programs for the U.S. Navy. The company has average annual revenues of approximately $40 million and 350 employees.