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Northrop Grumman Federal CreditUnion writes both variable and fixedrate loans for 30,20 and 15-year terms,charges the lowest interest rates possi-ble and fees that are hard to beat.Youcan be pre-qualified on the same dayyou apply and approved in 72 hours(during the business week).A free fea-ture with NGFCU real estate loans iscalled "float down." When you areapproved for your loan, you know theinterest rate you will pay, but if ratesdecline in the weeks before your loancloses, your rate will "float down".

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When you are shopping for a homeloan, think about the NorthropGrumman Federal Credit Union firstfor your mortgage financing needs.

NGFCU wants to get you a better rateon refinancing your current homeloan, lend you money to buy a newhome, and might even be able to getyou a rebate on the commissioncharged by the real estate brokerwhen you buy or sell your home.

"At the Credit Union, you are treatedas a person, not just a loan number,"said Paul Jones, Manager, Real EstateLoans. "I am very proud of our loancounselors.They will go the extra mileto make the loan process convenientand successful for the member. Pluswe retain the servicing on the realestate loans we write so you start withus and finish with us. We have yourrecords if there are ever any problemsand you will always know who to callabout your loan."

Members Get More, Pay Less-

A Special Appearance on NorthropGrumman Night at Dodger Stadium

Northrop Grumman Chairman,President and CEO Kent Kresa (right)threw the ceremonial first pitch toopen the game at Dodger Stadium inLos Angeles on Saturday, April 28.Among the more than 40,000 fans onhand,about 4,000 Northrop Grumman

Federal Credit Union members, familyand friends cheered the Dodger Blue tovictory. Here Mr. Kresa accepts con-gratulations from Northrop GrummanFederal Credit Union President/CEOStan Swenson as they leave the fieldtogether.★

NGFCU Home Loans

A Publication for members of Northrop Grumman Federal Credit Union

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Northrop Grumman Federal CreditUnion members in California, Nevada,Arizona and Utah can now take advan-tage of special group rates for auto andproperty insurance.

This new member benefit is under-written by Civil Service EmployeesInsurance Group (CSE),which is head-quartered in San Francisco. CSE wasfounded in 1949 to provide publicemployees and other special organiza-tions like ours the best in coverage andservice at low competitive rates.

Flight Plan Financial Services, Inc. isour subsidiary organization that offersselected financial and insurance prod-ucts and services. Flight Plan tookseveral years to review potential pro-grams for our members. Before select-ing CSE,they conducted extensive ratereviews using the CaliforniaDepartment of Insurance rating exam-ples and measured CSE’s competitive-ness against major underwriters inCalifornia in those ZIP codes wherethe majority of our members live.

These reviews indicated that CSE’s rateswere the lowest or among the lowestavailable. Of course,not all members willsave money compared to their currentcoverage; however, this new benefitoffers all members the opportunity tomake a comparison without obligation.

Coverages Available Include:

Auto — with comprehensive protectionagainst a wide range of costs. Discountsmay apply to multi-car, good driver orover age 55 as well as other specializedconditions. Also, a multi-policy discountapplies when members choose CSE toprotect both their autos and homes.

Property — offering complete protec-tion for home and condominium own-ers, as well as renters and boat owners.

Umbrella — providing comprehensiveliability coverage for additional protec-tion.

Our members will deal directly withCSE employees both for sales and

service. Claims service is available 24hours a day – 7 days a week with sameday assignment of claim adjuster whenpossible.

Members residing in California,Nevada, Arizona and Utah will bemailed additional details by July 1. Inthe interim, members with pendingrenewals of current policies or need-ing new coverage can call toll free to1-888-CSE-1220 and receive quota-tions and effect coverage as desired.Just identify yourself as a NorthropGrumman Federal Credit Union mem-ber to receive the special discounts.★

Auto And Property InsuranceNow Available At Group Rates

Home loans ... continued "Banks might charge a borrower $400- $1000 for a rate float option, but ourmembers get that free when they gettheir loan from us," Jones said

And Credit Union members get anoth-er opportunity to save as well. Whenyou use NGFCU’s Real Estate RebateProgram for buying or selling yourhome or other real property, you could be eligible for a rebate of up to15 percent from the commission col-lected by a Prudential CaliforniaRealtor.Ask any of the real estate loancounselors for more informationabout this valuable service.

The bottom line is that you get bothpersonal service and cost savingswhen you use Northrop GrummanFCU for real estate loans. Find moreinformation at http://www.norgrum-fcu.org under "Products" or call amember service representative at 800-633-2848 ext. 4817 (Monday-Friday,8:30 a.m. - 5 p.m. Pacific).

NGFCU currently provides first mort-gage services in the states ofCalifornia, Texas, Illinois, Florida,Virginia, Maryland, Oregon,Washington,Pennsylvania, Georgia and Alabama,and in Washington,D.C.★

You lost your wallet or purse.You don’tknow whether it was stolen or simplyleft behind in a store or restaurant.Youhope that whoever finds it will return itto you, but in the meantime you muststart damage control immediately toprevent your good name and recordfrom being used in committing identityfraud.

A Credit Union member recentlyshared this personal experience abouthaving his wallet stolen.

"Within a week, the thieves ordered anexpensive monthly cell phone package,applied for a VISA credit card, had acredit line approved to buy a Gatewaycomputer, received a PIN from theDepartment of Motor Vehicles tochange my driver’s license informationonline, and more."

What To Do

He learned these actions would havereduced the damage:

• Have a list of your credit cards,membership cards, ATM and checkcards that includes the phone numbersto call for canceling them. Findingthose phone numbers is difficult whenyou are under stress.

• Report the loss to the PoliceDepartment where you believe itoccurred. This is important to creditproviders and will be the basis for aninvestigation, if one is initiated in thefuture.

• Report the loss to the three nation-wide credit reporting agencies to placea fraud alert on your name and socialsecurity number. The credit reportingagencies will send you a copy of your

credit report, and any company verify-ing your credit will be alerted to con-tact you before they will approve newcredit.

• Equifax 1-800-525-6285

• Experian (formerly TRW) 1-888-397-3742

• Trans Union 1-800-680-7289

The Social Security Administration alsohas a fraud line at 1-800-269-0271.

For lost NGFCU checks,contact a mem-ber service representative at 800-633-2848 and be prepared to give the rangeof check numbers for the lost checks.Your account will be charged $10 forplacing a stop payment on the entirerange of compromised checks.

As we begin the busy summer vacationseason,it’s a good idea to start out with thepeace of mind knowing that access to yourpersonal finances is protected against lossor theft. We encourage you to share thisinformation with your family and friends.★

It’s gone! With all my credit cards and checks!

Taking Action to Prevent Credit Fraud, Identity Theft

We’re Safeguarding YourInformation... Are You?The Northrop Grumman Federal CreditUnion does not sell any of your personalinformation to outside firms for marketingpurposes.However,there are outside agenciesand companies, including credit reportingagencies,who will.Your personal information,which meets certain criteria, could beincluded on lists and sold to marketingcompanies who are members of the DirectMarketing Association. If you do not want anyof your information shared with thesecompanies and want to cut down on "junkmail" and annoying "dinner time phone calls,"we recommend the following:

•To inform the National Consumer ReportingAgencies (Credit Bureaus) that you do notwant personal information shared formarketing purposes, call 1-800-353-0809.

•To erase your name from direct mailingand/or telemarketing lists, you must write tothe Direct Marketing Association at both ofthe following addresses and ask that yourname be deleted from any lists that they sell.

Mail Preference Service Assoc.c/o Direct Marketing Association

P.O. Box 9008 Farmingdale, NY 11735-9008

Telephone Preference Service Assoc. c/o Direct Marketing Association

P.O. Box 9014Farmingdale, NY 11735-9014

Identity theft is one of the fastest growingcrimes in the world. Thieves steal yourpersonal information and use it to commitfraud or theft, such as opening new checkingor credit card accounts in your name.You canminimize your risk of becoming a victim bycontrolling the amount of personalinformation that you release;by knowing whoyou are releasing the information to; and byverifying why they want or need it and whatit will be used for.If you become a victim you should report itto all of the following: the creditors of anyaccounts that were tampered with or opened;the fraud department of all three major creditreporting agencies; your local police or thelocal police of the community where the thefttook place;and the Federal Trade Commissionat their toll free number 1-877-438-4338.

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All the bells and whistles are ringingfor the general availability ofthe_ Max!, our online branch alternativefrom your personal computer. Wehave created secure, convenient andworry-free access to your CreditUnion accounts from your home,office or anywhere you have Internetaccess. It provides you withimmediate real time access to youraccounts, information about accountactivity and many other services, likebill payer and on-line loan application.

Northrop Grumman Federal CreditUnion has added to its extensivegroup of direct member accountaccessibility services, the powerfuland secure super technology of a"home branch." Why do we call it a"home branch"? With productinformation, disclosure and newsadded to the convenience of on-linetransactions ,you have all the tools youneed to perform most of the businessthat previously required a branch visit.You save time, gas, and money byusing the services provided byNorthrop Grumman FCU withoutmoving from your desk or your den atour web site www.norgrumfcu.org.The "branch" is open for yourconvenience and peace of mind 24hours a day, 7 days a week.

Check out the array of services nowavailable on the_ Max!, your InternetAccount Access Navigator.

TRANSFERS – Transfer funds fromone account to another.

•Move funds between youraccounts

•Move funds from youraccount to another account

•Request an official checkdrawn against funds in youraccount and mailed to you

•Initiate a wire transfer

•Review a log of recurringautomatic transfers fromyour account

BILL PAYER – Schedule billpayments directly from your accountto merchants.

•Set up payments tomerchants quickly and easily

•Schedule fixed and variablepayment amounts

•Obtain payment histories andexport to other software

•Change and delete payeeinformation

ACCOUNTS - Bring up a summaryand detailed information on youraccounts.

•Check account balances

•Obtain account histories andexport to other software

•Obtain dividend/interestinformation

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Is Here!!!

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SERVICES – Manage a variety of account functions online.

•Open new subaccounts

•Open a certificate account

•Request an IRA distribution

•Add a joint owner to youraccount

•Set up overdraft protection

•Submit a loan request

•Calculate estimated loanpayments

•Initiate payroll deduction

•Change your PIN (PersonalIdentification Number)

•Reorder Share Drafts(Checks)

•Order a stop payment on acheck or a series of checks

•Report a lost ATM, checkcard or credit card

•Change your address of record

•Request copies of statements

•Report a dispute on yourcredit card

finances organized efficiently, safelyand securely at home, at work, or onthe road. Simply go to the NorthropGrumman Federal Credit Union website at www.norgrumfcu.org and clickon the the_ Max! icon in the upperright hand corner. Identify yourselfwith your account number and yourCall 24/the_ Max! PIN as requested,and your account is at your fingertips.If you don’t have a Call 24/the_ Max!

PIN, simply e-mail us from our website or call us at 1-800-633-2848. Withthe_ Max!,taking care of your financeshas never been easier, safer or moreconvenient.★

The Southern California HistoricalAviation Foundation (SCHAF) hasproudly announced the arrival of"Sierra Sue" at their Western Museum ofFlight in Hawthorne, California, whereit will be on display for an undeter-mined period of time. A unique "push-er" aircraft with a single propeller inback of its tail, Sierra Sue was designedand built in the 1950s as a race planeby engineers at North American andNorthrop in their spare time. In thelate 1960s, it served as a conceptdemonstrator in developing a prototypeattack aircraft for the U.S.Air Force,butthe design was dropped when the AirForce announced its requirement for ajet, rather than a propeller aircraft.

If you haven’t been to the WesternMuseum of Flight, you may find it’sworth the trip. Located at the corner

of 120th Street and Prairie Avenue inHawthorne, California, the museumdisplays an F-86 Sabre Jet, LockheedY03A Quiet Star,Northrop YF-17 Cobra(prototype of the F/A-18), F-5 and YF-23, among other aircraft. Hours are 10 a.m. - 3 p.m., Tuesday - Saturday.Tuesdays and Thursdays are busy dayswith many volunteers working on vin-tage aircraft restoration.

Because Northrop Grumman FederalCredit Union has a long history of pro-viding financial services for designers,builders and aficionados of NorthropGrumman aircraft, it recently addedSCHAF to the group of organizations itserves by offering credit union servicesto SCHAF members.

To learn more about SCHAF, visittheir web site at www.wmof.comor call (310) 332-6228★

Historical Aviation FoundationAnnounces New Arrival inHawthorne, California

the_Max! Is A Benefit T o

Members Nationwide

the_ Max! is the fast and convenientway to manage your finances on theInternet,24 hours a day,7 days a week.With the_ Max!, you keep your

YES, I am interested in learning more about securing my own financial future.Please send me information on the following:❏ Retirement Planning ❏ Reducing Taxes ❏ Living Trusts❏ IRA Rollovers ❏ Mutual Funds ❏ Life Insurance❏ Long-Term Care ❏ College Funding ❏ Savings and Investment Plan 401(k)❏ Medicare Supplement ❏ Dental Plans * Securities are offered through LINSCO/PRIVATE LEDGER,

Member NASD/SIPC

Send your request to FPFS, Box 1119, Hawthorne, CA 90251Name__________________________________________________Phone Number______________________________Address___________________________________________________________________________________________City___________________________________________________State___________ZIP_________________________I would like to discuss my choices with FPFS.Please call me at:________________________________________________

Flight Plan Financial Services, Inc.A wholly-owned subsidiary of Northrop Grumman Federal Credit Union

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Privacy Notice Flight Plan FinancialServices,Inc.Flight Plan Financial Services, Inc., iscommitted to protecting the privacy of itscustomers. References to "we", "us" and"our" refer to Flight Plan Financial Services,Inc. References to "Credit Union" shall meanNorthrop Grumman Federal Credit Union.We are a subsidiary and an affiliate of theCredit Union.

In the course of providing services to you,we collect information about you. Some ofthis information is nonpublic personalinformation. We do not sell your nonpublicpersonal information but we share some ofthe nonpublic information with our serviceproviders and others in order to better serveyou. We share your nonpublic personalinformation only with contractual safe-guards to protect the confidentiality of yourinformation. The purpose of this notice is toinform you of our Privacy Policy.

If you have any questions regarding thisPrivacy Policy, please contact us at 1-800-200-1121.

Information We CollectAbout You and Disclose toOthersWe collect information about you from thefollowing sources:• Information we receive from you onapplications and other forms (for example,name, address, social security number, assetsand income);• Information about your transactions withus, our affiliate or others including thoseCompanies that work closely with us toprovide you with diverse financial productsand services(for example, your account

balance, payment history, parties totransactions and credit card usage);• Information we receive from a creditreporting agency (for example, your creditworthiness and credit history);• Information obtained when verifying theinformation you provided on an applicationor other forms (this may be obtained fromyour current or past employers, or fromother institutions where you conductfinancial transactions); and• Information we may obtain fromconsumer purchasing and census dataproviders to develop competitive marketingprograms for our members.We may disclose all of the information wecollect, as described above, as permitted bylaw.

Parties Who ReceiveInformation From Us

As affiliates, we share your nonpublicinformation with the Credit Union. Inaddition, we may disclose nonpublicpersonal information about you to thefollowing types of third parties:• Financial service providers such as thosethat provide securities, insurance, andmortgage services; and• Non-financial companies, such as,consumer reporting agencies.In order that we may provide memberscompetitive products and services, we maydisclose all of the information we collect, asdescribed above, to companies that performmarketing or other services on our behalfand to other financial service providers withwhom we have joint marketing agreements.We may also disclose information about youunder circumstances as permitted orrequired by law. These disclosures typicallyinclude information to process transactionson your behalf, conduct our operations,follow your instructions as you authorize orprotect the security of our financial records.

If you decide to terminate your relationshipwith us, we will not share information wehave collected about you, except as may bepermitted or required by law.

Fair Credit Reporting ActDisclosureIn this notice, we are required to also adviseyou of our disclosure policy under the FairCredit Reporting Act. The Fair CreditReporting Act governs the sharing ofinformation that may impact upon you forcertain purposes such as credit, collectionsand insurance. We learn information aboutyou from our experience with you and frominformation provided by others, such asthrough credit reports. The Fair CreditReporting Act permits us and we do shareinformation from our experience with youwith others, including the Credit Union andcredit reporting agencies. The Fair CreditReporting Act permits us to shareinformation we learn from others unless youdirect us otherwise. If we elect to shareinformation about you that we learn fromothers for a purpose under the Fair CreditReporting Act, we will give you a separatenotice of our intention to do so and the rightto direct us not to share the information.

How We Protect YourInformationWe restrict access to information about youto those employees who need to know thatinformation to provide products andservices to you. We maintain physical,electronic, and procedural safeguards thatcomply with federal regulations to guardyour information.

Problems? Inquiries?The Supervisory Committee is charged with theresponsibility of continually reviewing the operation ofthe Credit Union to ensure that it is operating in the bestinterest of its members. Any questions, suggestions orinquiries should be directed to:

Chairman, Supervisory CommitteeNorthrop GrummanFederal Credit UnionP.O. Box 3382Gardena, CA 90247-7082

Important TelephoneNumbers

Credit Union . . . . . . . . . . . . . . . . . . . . . . . (310) 808-4000Outside 213 or 310 . . . . . . . . . . . . . . . . . (800) 633-2848Eastern Region . . . . . . . . . . . . . . . . . . . . (800) 634-7075

CALL 24, 24-HourTouch-Tone Transactions . . . . . . . . . . . . . (310) 327-0682Outside 213 or 310 . . . . . . . . . . . . . . . . . (800) 676-3328

To report a lost or stolencredit union MasterCard . . . . . . . . . . . . . (800) 453-4270

CO-OP Network ATM Locations . . . . . . (888) SITECOOPCU Service Center Locations . . . . . . . . . . (888) 287-9475Internet Access . . . . . . . . . . . . . . . www.norgrumfcu.org

Auto Loan Rates may be discounted up to 1%. Call for details.

Account Min. Bal. APY*Money Market $2,500 4.28% Lower rates apply if balance falls

below the minimum shown6-Month Term $5,000 4.04% A penalty may be imposed for1-Year Term $5,000 4.18% early withdrawal2-Year Term $5,000 4.31% 30-Month Term$5,000 4.45% Rates change weekly3-Year Term $5,000 4.58% 4-Year Term $5,000 4.91% Call for current rates5-Year Term $5,000 5.13% A .25% bonus dividend will be applied to all term accounts $40,000 & over

MasterCard MoneyMaster

Real Estate Loans

Variable 12.75% APR 12.25% APRFixed 15.75% APR 16.00% APRLoan limits of $500 to $25,000, no annual fee.Total of MasterCard and MoneyMaster Line of Credit may not exceed $25,000.

SAVINGS RATES

Credit Union Rates The following is a sampling of most recent rates at time of publication. Pleasecall for other rates and terms. Rates subject to change.

LOAN RATESFirst Trust Deed LoanAvailable in the states of: California, Texas, Florida, Washington,Oregon, Pennsylvania, Georgia, Maryland, Virginia, Illinois, Alabamaand Washington D.C.For Current Information, call (800) 633-2848 ext.4817Home Equity Line of Credit — 7.25% APR Variable Rate$650 fee allowance. Up to 15 years financing. 90% of Appraised Value lessbalance on 1st Trust Deed. $100,000 maximum line amount. Primary res-idences (1-4 units). The Home Equity Line of Credit rate index is the indexin effect at the time of funding and remains in effect for the term of the loan (including loan advances). Available in California, Maryland,Pennsylvania & Illinois only.* APY - Annual Percentage Yield • APR - Annual Percentage Rate

New& UsedVehicles

Loan Value

80%

90%

100%

VariableRate

Up to 6 yr.

7.00%

7.50%

8.00%

FixedRate4yr.

7.50%

8.00%

8.50%

Fixed Rate5yr.

7.75%

8.25%

8.75%

Fixed Rate6 yr.

8.00%

8.50%

9.00%

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To: Northrop Grumman Federal Credit UnionAttn: Service Group

YES, I WANT TO KNOW MORE. PLEASE SEND ME:❏ B-2 Image/Gold MasterCard application ❏ CALL 24 application❏ First Trust Deed Loan application ❏ Term Savings Account information❏ Home Equity Line of Credit application ❏ Auto Loan information❏ MoneyMaster Line of Credit application ❏ Net Paycheck sign-up form❏ Share Draft (checking) application ❏ Star System/Cirrus ATM locations❏ ATM application (Share Draft Account holders only) ❏ PALSsm (Precision Auto Locator System)❏ Direct Deposit of Social Security application ❏ Family Membership Kit❏ Direct Deposit of Retirement application ❏ Holiday Account applicationNot necessary to complete if mailing label is affixed to reverse side.Name ______________________________Account Number ____________________________________________Address ________________________________________________________________________________________

______________________________________________________________________________________________

So you want a new car or a secondcar—maybe one of those cute littlesports cars to take out on Sundaygetaways—but you think rates for autoloans might still be too high? Youmight have those new wheels soonerthan you think. As a member ofNorthrop Grumman Federal CreditUnion, you may be half-way towardsaving one full percentage point onour already low loan rates to purchasea new or previously owned auto. Nowyou can borrow at a rate as low as6.25% when you use some or all ofthese Credit Union services:

■ Fee-free, low-rateMasterCard

■ Highly liquid, lowminimum-deposit MoneyMarket Account

■ Electronic transfer of fundsfrom your paycheck to aNGFCU account or loan

■ Northrop Grumman FCU’sconvenient VISAATM/Check Card

■ Call 24/the Max! phone orweb-based access to yourNGFCU accounts

■ Another NGFCU loan

Use 2 of the above products, you get1/4% off. Use 3, you get 1/2% off.You, like most NGFCU members,might already be eligible for the 1/2%discount for using at least three ofthese services because they offerconvenience and value. Increase thevalue of your membership by using 4,and you get 3/4% off. When you use 5,you are eligible for the lowest possiblerate on your next auto loan with a full1% discount.

This is an exciting way for membersto save money on an auto loan.You’ll also discover how easy it is touse NGFCU services that give youpeace of mind when managing yourCredit Union accounts. Your CreditUnion also offers the convenience ofpre-approved auto loans. To learnmore about the services describedabove and to apply for your pre-approved auto loan, simply call aMember Service Representative at800-633-2848.★

PRSRTSTD U.S. POSTAGE

PAID SUN VALLEY, CA

PERMITNO. 8

Each member credit union federally insured to$100,000 by the National Credit Union Administration,a U.S. Government Agency

Save Money With OurDiscounted Auto Loan Rates.

Take Advantage Of This Valuable

And Covenient Service