Northrop Grumman is working on structural components for the K-1's launch assist platform and orbital vehicle. The agreement announced today incorporates a preliminary development contract awarded in January 1997.

The K-1 has been designed by Kistler as a two-stage vehicle for ground launch of communications satellites into low-earth orbit, where it delivers its payload and then returns to earth to be prepared for relaunch. These vehicles are intended to serve as a fleet of light space ``trucks'' to transport satellites into orbit at a substantially reduced cost per launch compared to existing expendable platforms. Each K-1 vehicle is expected to accomplish approximately 100 flights.

``This contract with Kistler Aerospace is an opportunity for Northrop Grumman to demonstrate its technological and production expertise on an advanced program that complements our existing aerostructures business area,'' said William H. Lawler, corporate vice president and general manager of Northrop Grumman's Military Aircraft Systems Division (MASD).

About 400 people are employed on the K-1 program at the company's MASD facility in El Segundo, Calif. No additional hiring is expected.

Kistler Aerospace Corporation, the developer of the K-1 reusable launch vehicle, is a privately funded U.S. company with corporate offices in Kirkland, Wash., and executive offices in Los Angeles.