NEWPORT NEWS, Va., July 15, 1998 – Newport News Shipbuilding (NYSE: NNS) announced today that its Board of Directors has approved a $45 million share repurchase program. This new program is expected to be implemented over the 1998-99 time period and will be accomplished through open market and privately negotiated transactions. Shares repurchased through the program will be used primarily to fund ongoing employee compensation and benefit plan obligations.

"The share repurchase program reflects the Board’s confidence in the company’s future performance," said Bill Fricks, Chairman and Chief Executive Officer. "Our core business is on track to deliver strong results in 1998 and beyond. We continue to view share repurchases as an efficient and cost-effective approach to funding our employee benefit plans while also providing flexibility for other purposes."

This program follows the completion of the company’s prior authorizations of $10 million and $35 million, which were announced in September and October of 1997. Shares repurchased under the previous authorization were used to fund employee benefit plans in 1997 and 1998, as well to facilitate the purchase of Continental Maritime Industries late last year.

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 $1.7 billion.