NEWPORT NEWS SHIPBUILDING AWARDED CONTRACT FOR NEW NIMITZ-CLASS CARRIER, CVN 77

NEWPORT NEWS, Va., September 10, 1998 – The country’s only shipyard capable of building nuclear-powered aircraft carriers, Newport News Shipbuilding (NYSE: NNS), announced today that it has been awarded a contract by the U.S. Navy for advanced procurement and advanced construction for the next Nimitz-class aircraft carrier.

The as-yet unnamed CVN 77 will serve as the first transition ship to a new class of carriers. The contract is valued at approximately $45.3 million. It includes three options that, if exercised, would bring the total value of this contract to approximately $190 million. Full construction authorization is expected in the year 2000. Work performed under the contract will include planning and material procurement with the intent to begin advance construction as early as next year.

"CVN 77 is an important transitional step toward the evolution of future carriers," said Mike Petters, Vice President and General Manager for Aircraft Carriers at Newport News Shipbuilding. "The CVN 77 will incorporate new technologies that pave the way for development of the Navy’s next class of large deck, nuclear-powered carriers."

Program objectives include incorporating new sensor and communication system technology, significantly reducing total ownership cost of the ship while improving certain operational capabilities. The contract will enable Newport News Shipbuilding to

begin buying some materials to start construction in areas below the waterline where no major design changes are expected, such as on the inner bottoms of the ship.

Newport News Shipbuilding is America’s premier shipbuilding company with annual revenues of approximately $1.7 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.