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NEWPORT NEWS SHIPBUILDING ANNOUNCES POSITIVE SECOND QUARTER OUTLOOK

• NNS on track to exceed second quarter earnings estimates as strength in core programs drive higher margins.
• In combination with higher margins, one-time items to add approximately $0.40 to EPS and $15 million in free cash flow.
• Full details in earnings release scheduled July 15, 1999.

NEWPORT NEWS, Va., June 28, 1999 – Newport News Shipbuilding (NNS) announced today that it was increasing its second quarter earnings estimates by approximately $0.40 per share due to stronger margins in its core business and one-time pre-tax gains of $25 million. The $25 million pre-tax gains consisted of termination fees associated with the Avondale Merger Agreement and settlements of insurance claims on completed contracts.

"The favorable one-time items together with the continued strong operating performance will combine to produce an exceptional quarter," said Bill Fricks, Chairman and Chief Executive Officer. "Additionally, as we continue to achieve productivity improvements in our operations and redeploy cash flow, we plan to exceed expectations throughout 1999."

Newport News included in its merger agreement with Avondale Industries clauses pertaining to termination penalties. As a result, the Company received $20 million in payments consisting of a $15 million break-up fee and $5 million in connection with a stock option agreement. The termination fees will be partially offset by approximately $5 million in deal related expenses incurred by the Company.

Additionally, the Company will recognize a gain of $10 million from insurance settlements related to previously completed ship construction projects.

Newport News Shipbuilding (NYSE: NNS) 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 $1.8 billion. More information about Newport News Shipbuilding can be found on the Internet at (www.nns.com).