AREVA, Northrop Grumman Join Forces to Create World-Class Facility in U.S. to Manufacture...

AREVA, Northrop Grumman Join Forces to Create World-Class Facility in U.S. to Manufacture Heavy Components for American Nuclear Energy Industry

NEWPORT NEWS, Va.--(Business Wire)--
Regulatory News:

AREVA (Paris:CEI) and Northrop Grumman Shipbuilding, a sector of
Northrop Grumman Corporation (NYSE: NOC), have joined forces to build
a new manufacturing and engineering facility in Newport News, Va., to
supply the growing American nuclear energy sector. The joint venture,
AREVA Newport News, LLC, with AREVA will hold 67% and Northrop Grumman
33%, will establish a world-class facility to manufacture heavy
components for the U.S. EPR, AREVA's Generation III+ nuclear reactor.

The 300,000 square-foot facility represents a significant
investment of more than $360 million in the U.S. commercial nuclear
and manufacturing industries and will bring more than 500 skilled
hourly and salaried jobs to the Commonwealth of Virginia. AREVA
Newport News will be the first full-scale manufacturing facility
dedicated to supply heavy components, such as reactor vessels, steam
generators and pressurizers to the U.S. nuclear energy industry. These
components will supply the first new U.S. nuclear power plants to be
built in 35 years. Industry experts have viewed limited production of
heavy components positioned against rising demand as a constraint on
nuclear energy's expansion.

"AREVA Newport News is powerful evidence of the reality of the
U.S. nuclear energy resurgence and our commitment to it," said AREVA
CEO Anne Lauvergeon. "AREVA intends to build one-third of all new
reactors around the world and at least seven in the United States.
AREVA Newport News is a key step in our dual strategy to increase
domestic content in the new nuclear power plants we build and to
produce in dollars area. Together with our Chalon/St. Marcel plant in
France, AREVA strengthens its capabilities to supply the global energy
renaissance."

AREVA has been manufacturing quality heavy components for the
global commercial nuclear industry for more than 30 years at its
Chalon/St. Marcel plant. Together with Northrop Grumman's experience,
AREVA Newport News will provide a secure domestic link in the supply
chain for deploying the U.S. EPR and supporting a diverse energy mix
that will mean safe, clean, affordable electricity for Americans.

"This relationship capitalizes on Northrop Grumman Shipbuilding's
century-long history of quality craftsmanship, skilled engineering and
program management expertise building large nuclear and non-nuclear
ships for the U.S. Navy," said Mike Petters, Corporate Vice President
and President Northrop Grumman Shipbuilding. "Our shipbuilders embrace
the opportunity to apply their considerable skills and training to a
growing U.S. energy sector, backed by the pro-growth environment of
the Commonwealth of Virginia, employing the same dedication and
commitment to domestic energy security that has been applied to
national security."

Northrop Grumman's Shipbuilding sector brings its heavy industrial
engineering and manufacturing expertise and the culture of excellence
required to build U.S. Navy nuclear ships to the venture. Along with
its skilled workforce, Northrop Grumman has existing transportation
access via the James River to deliver heavy components.

"The nuclear power industry is bringing back 'made in America',"
said Tom Christopher, CEO of AREVA Inc., the group's North American
division. "In addition to our joint venture with Northrop Grumman, we
are working with Lehigh Heavy Forge in Bethlehem, Pa., to produce
qualified forgings for the U.S. EPR, further strengthening the U.S.
manufacturing sector. Each new Generation III+ nuclear power plant in
the United States will create thousands of jobs and many more will be
generated as industries gear up to supply the materials and
components."

"This agreement is the result of several years of effort by both
the AREVA and Northrop Grumman teams," said Dan Arczynski, Vice
President for Strategy, Northrop Grumman Shipbuilding. "The
relationship that has formed between our great companies is grounded
in similar cultures of heavy manufacturing excellence. This new
venture will be good for both of our companies, the Commonwealth of
Virginia and City of Newport News, and the future of manufacturing in
America."

More About

AREVA

As the leading U.S. nuclear vendor and a key player in the
electricity transmission and distribution sector, AREVA Inc.'s 5,300
U.S. energy employees are committed to serving the nation and paving
the way for the future of the electricity market. With 45 locations
across the nation and nearly $2 billion in energy revenues in 2007,
AREVA Inc., through its subsidiaries, combines U.S. leadership, access
to worldwide expertise and a proven track record of performance. In
the United States and in more than 100 countries around the world,
AREVA is engaged in the 21st century's greatest challenges: making
energy available to all, protecting the planet, and acting responsibly
toward future generations. AREVA Inc. is headquartered in Bethesda,
Maryland.

Northrop Grumman

Northrop Grumman Corporation is a global defense and technology
company whose 120,000 employees provide innovative systems, products,
and solutions in information and services, electronics, aerospace and
shipbuilding to government and commercial customers worldwide.

Northrop Grumman
Margaret Mitchell-Jones, +1 (202) 550-8746
M.Mitchell-Jones@ngc.com
or
AREVA
Jarret Adams, + 1 (301) 841-1695
Jarret.Adams@areva.com

Copyright Business Wire 2008