FOR IMMEDIATE RELEASE	AT

MONDAY, MARCH 23, 1998                                                                                                                           (202) 616-2771

                                                                                                                                                                                TDD (202) 514-1888




ATTORNEY GENERAL RENO'S STATEMENT REGARDING


THE CHALLENGE OF THE LOCKHEED MARTIN/NORTHROP GRUMMAN


MERGER





	"Good Afternoon.  

	Competition is the lifeblood of a free market economy.  It
produces better products, innovation and lower prices for
consumers.  This Administration's antitrust enforcement policy has
been based on a simple principle:  in a fast-moving global economy,
our nation cannot afford anything less than full-blooded
competition. 




	That is why we asked a federal court in Washington, DC today
to prevent the merger of the Lockheed Martin Corporation and the
Northrop Grumman Corporation -- two of the largest suppliers of
defense systems to the U.S. military.  This is the single largest
merger ever challenged.




	In our complaint we allege that the proposed merger would
substantially reduce competition in many areas of vital importance
to America's national defense.  It would cost taxpayers more and
take the competitive wind out of the sails of innovation in the
production of many critical systems that protect our fighting men
and women.




	The defense industry is already highly concentrated.  If this
merger were to go forward, America could face higher prices and
lower quality in advanced tactical and strategic aircraft, airborne
early warning radar systems, sonar systems, and several types of
countermeasure systems that save our pilots from being shot down
when they are flying in hostile skies.




	This merger isn't just about dollars and cents.  It's about
winning wars and saving lives.  That's why the investigation of
this merger has been conducted jointly by both the Justice
Department and the Department of Defense.  




	Together, we want to insure that any defense merger protects
our soldier's lives and our taxpayers' wallets.  Our message is
simple:  If a merger does not encourage strong competition, it is
not in America's interest." 

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