FOR IMMEDIATE RELEASE

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NEWPORT NEWS SHIPBUILDING DECLINES TO INCREASE BID FOR AVONDALE INDUSTRIES

NEWPORT NEWS, Va., June 3, 1999 – Newport News Shipbuilding (NYSE: NNS) announced today that it will not increase its bid to merge with Avondale Industries, Inc. This announcement was made after the company received formal notification from Avondale that its Board of Directors determined that it would accept Litton Industries, Inc. offer to acquire Avondale. Newport News Shipbuilding was notified of this decision on June 1, 1999. On January 19, 1999 Newport News and Avondale agreed to a stock-for-stock transaction valued at $35.50 per share.

"We thoroughly reviewed the issues and determined that it was not in the best business interests of our shareholders to raise our offer for Avondale," said William P. Fricks, Chairman and CEO of Newport News Shipbuilding.

Newport News Shipbuilding designs and constructs nuclear-powered aircraft carriers and submarines for the U.S. Navy and provides life-cycle services for ships in the Navy fleet. The company employs 18,000 people and has annual revenues of approximately $1.9 billion. Visit NNS on the Web at www.nns.com.