NEWPORT NEWS, Va., June 4, 1998 – Newport News Shipbuilding (NYSE: NNS) today announced that its Board of Directors approved a shareholder rights plan to replace the company’s current plan, which expires on June 10, 1998.

According to Chairman and Chief Executive Officer William P. Fricks, "The new plan has features that are common to many large, publicly traded companies. Its purpose is also straightforward – to provide the company with protection against any potential takeover tactics that the Board determines to be unfavorable to shareholders’ interests."

The shareholder rights plan will be implemented by the issuance of one preferred stock right (a "Right") for each outstanding share of Newport News common stock. The Rights, which have a ten year life, will become exercisable only in certain circumstances, including the acquisition of more than 15% of the company’s outstanding common stock by any person or group. Details of the rights plan will be contained in a letter to be mailed to all shareholders.

Newport News Shipbuilding designs and constructs nuclear powered aircraft carriers and submarines for the U.S. Navy and provides lifecycle maintenance services for ships in the Navy fleet. The company employs more than 18,000 people, and has annual revenues of approximately $1.8 billion.