GenCorp's Aerojet Segment Signs Agreement With Northrop Grumman Corporation To Sell Electronics and Information Systems Business

Apr 20, 2001, 01:00 ET from GenCorp

    SACRAMENTO, Calif., April 20 /PRNewswire Interactive News Release/ --
 GenCorp (NYSE:   GY) today announced that its aerospace and defense segment,
 Aerojet-General, has signed a definitive agreement to sell its Electronic and
 Information Systems (EIS) business to Northrop Grumman Corporation (NYSE:   NOC)
 for $315 million in cash.  The EIS business had revenues of $323 million in
 fiscal year 2000.  The sale, which is subject to the receipt of government
 approvals, is expected to close by the summer.  Northrop Grumman will acquire
 the assets of EIS operations in Azusa, California, and in Boulder and
 Colorado Springs, Colorado, and the EIS employees will transfer to
 Northrop Grumman.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20010108/SFM125LOGO )
     "The sale of Aerojet's EIS business allows us to focus our defense sector
 efforts on growing our propulsion and related defense businesses, which are
 located principally in Sacramento, California," said Bob Wolfe, GenCorp
 Chairman and CEO.  "The sale achieves key objectives for GenCorp:
 
     -- The sale of EIS strengthens GenCorp's balance sheet, allows us to pay
        down existing debt, and gives us the ability to more readily access the
        capital markets to grow other businesses, primarily the propulsion and
        defense related unit of Aerojet, and GenCorp's new real estate
        business.
     -- The sale offers EIS employees the opportunity to be part of Northrop
        Grumman's rapidly growing Electronic Sensors and Systems Sector."
 
     Effective immediately, GenCorp will implement two management changes
 related to the transaction.  Carl Fischer, currently President of the Aerojet
 segment, will continue to head Aerojet's EIS business in Azusa, and will lead
 the transition between Aerojet and Northrop Grumman.  In addition, Fischer
 will remain a Vice President of GenCorp until the transaction closes.
 Michael Martin has been given a temporary assignment to head Aerojet's Missile
 and Space Propulsion business in Sacramento, and will retain his current
 position as GenCorp Vice President and Controller.
     Aerojet's EIS business is widely recognized for its expertise in infrared
 and microwave satellite sensor payloads used for remote sensing and
 meteorological applications, ground systems and software engineering, as well
 as the design and development of smart munitions and armaments -- all areas
 that are highly complementary with Northrop Grumman's operations.  EIS Azusa
 operations employ 1,256 people.  There are 195 EIS employees at the Colorado
 operations.
     Northrop Grumman Corporation is a $15 billion, global aerospace and
 defense company with its worldwide headquarters in Los Angeles.  Northrop
 Grumman provides technologically advanced, innovative products, services and
 solutions in defense and commercial electronics, systems integration,
 information technology and non-nuclear shipbuilding and systems.  With
 80,000 employees and operations in 44 states and 25 countries, Northrop
 Grumman serves U.S. and international military, government and commercial
 customers.
     GenCorp is a technology-based manufacturer with leading positions in
 aerospace and defense, pharmaceutical fine chemicals and automotive
 industries.  Merrill Lynch & Co. advised GenCorp on the transaction.  For more
 information on the Company, visit GenCorp's Web site at www.GenCorp.com.
 
                      MAKE YOUR OPINION COUNT - Click Here
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SOURCE GenCorp
    SACRAMENTO, Calif., April 20 /PRNewswire Interactive News Release/ --
 GenCorp (NYSE:   GY) today announced that its aerospace and defense segment,
 Aerojet-General, has signed a definitive agreement to sell its Electronic and
 Information Systems (EIS) business to Northrop Grumman Corporation (NYSE:   NOC)
 for $315 million in cash.  The EIS business had revenues of $323 million in
 fiscal year 2000.  The sale, which is subject to the receipt of government
 approvals, is expected to close by the summer.  Northrop Grumman will acquire
 the assets of EIS operations in Azusa, California, and in Boulder and
 Colorado Springs, Colorado, and the EIS employees will transfer to
 Northrop Grumman.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20010108/SFM125LOGO )
     "The sale of Aerojet's EIS business allows us to focus our defense sector
 efforts on growing our propulsion and related defense businesses, which are
 located principally in Sacramento, California," said Bob Wolfe, GenCorp
 Chairman and CEO.  "The sale achieves key objectives for GenCorp:
 
     -- The sale of EIS strengthens GenCorp's balance sheet, allows us to pay
        down existing debt, and gives us the ability to more readily access the
        capital markets to grow other businesses, primarily the propulsion and
        defense related unit of Aerojet, and GenCorp's new real estate
        business.
     -- The sale offers EIS employees the opportunity to be part of Northrop
        Grumman's rapidly growing Electronic Sensors and Systems Sector."
 
     Effective immediately, GenCorp will implement two management changes
 related to the transaction.  Carl Fischer, currently President of the Aerojet
 segment, will continue to head Aerojet's EIS business in Azusa, and will lead
 the transition between Aerojet and Northrop Grumman.  In addition, Fischer
 will remain a Vice President of GenCorp until the transaction closes.
 Michael Martin has been given a temporary assignment to head Aerojet's Missile
 and Space Propulsion business in Sacramento, and will retain his current
 position as GenCorp Vice President and Controller.
     Aerojet's EIS business is widely recognized for its expertise in infrared
 and microwave satellite sensor payloads used for remote sensing and
 meteorological applications, ground systems and software engineering, as well
 as the design and development of smart munitions and armaments -- all areas
 that are highly complementary with Northrop Grumman's operations.  EIS Azusa
 operations employ 1,256 people.  There are 195 EIS employees at the Colorado
 operations.
     Northrop Grumman Corporation is a $15 billion, global aerospace and
 defense company with its worldwide headquarters in Los Angeles.  Northrop
 Grumman provides technologically advanced, innovative products, services and
 solutions in defense and commercial electronics, systems integration,
 information technology and non-nuclear shipbuilding and systems.  With
 80,000 employees and operations in 44 states and 25 countries, Northrop
 Grumman serves U.S. and international military, government and commercial
 customers.
     GenCorp is a technology-based manufacturer with leading positions in
 aerospace and defense, pharmaceutical fine chemicals and automotive
 industries.  Merrill Lynch & Co. advised GenCorp on the transaction.  For more
 information on the Company, visit GenCorp's Web site at www.GenCorp.com.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X75168607
 
 SOURCE  GenCorp

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