MCKINNEY, Tex., Feb. 2, 2005  /PRNewswire/ -- Raytheon Company (NYSE: RTN)
recently received $32.5 million in U.S. Marine Corps contract awards for the
M1A1 tank Firepower Enhancement Program (FEP).

    Thirty and a half million dollars are earmarked for initial production of
FEP sensor kits, with $2 million dedicated to spare parts.  Raytheon will
deliver the sensor kits and spares specified in this production option by July
2007.  If the Marine Corps exercises all options, the total contract value
could reach $65 million.

    The Firepower Enhancement Program is a suite of upgrades for the M1A1 tank
that is unique to the Marine Corps and will eventually equip its entire fleet
of M1A1 tanks.

    The contract announced today initiates FEP full rate production; a
subsequent installation phase will lead the program to its targeted FY 2006
initial operating capability date.  By October 2009, more than 400 systems
should be fielded and the Marine Corps will have full operational capability.

    When installed on M1A1 tanks, FEP sensor kits improve the Marines' ability
to engage targets accurately, 24/7, in all weather conditions and at extended
ranges.  A new Far Target Location (FTL) sensor further extends the system's
range. The FTL greatly improves situational awareness and enables artillery or
air power units to perform follow-up engagements in support of armored vehicle
strikes.

    "The FEP greatly increases tank lethality and extends our overmatch of
current and expected threat systems beyond 2018," said Lt. Col. John Swift,
Marine Corps Tank Systems program manager. "Its capability is impressive and
operationally significant."

    Threat overmatch allows warfighters to detect, engage, and defeat enemy
threats before the enemy detects the presence of friendly forces.

    "Giving our troops the ability to 'shoot the enemy before he knows you're
there' is one way we can help them come home safely," said Glynn Raymer, vice
president of Raytheon Combat Systems.

    Raytheon Company, with 2003 sales of $18.1 billion, is an industry leader
in defense and government electronics, space, information technology,
technical services, and business and special mission aircraft.  With
headquarters in Waltham, Mass., Raytheon employs 78,000 people worldwide.

  Note to editors:
   * Work will be performed at Raytheon facilities in McKinney, Texas.
   * Raytheon will use FEP components to upgrade the LAV-25 weapon system; a

     side benefit of this move is that it will take the Marines a step
     closer to "parts commonality" across its armored vehicle fleet.
   * The FEP includes the FTL capability and a second-generation thermal
     sight. The second-generation thermal sight consists of upgrades to the
     M1A1's infrared optics, an infrared focal plane array, associated
     analog and digital electronics. The FTL includes a North Finding Module

     and a Precision Lightweight Global Positioning Receiver.  The FTL
     formulates a targeting solution using inputs from the laser
     rangefinder, the PLGR and the NFM.
   * The M1A1's mission is to close with and destroy the enemy by using
     armor protected firepower, shock effect, and maneuver. In addition, it
     provides anti-mechanized fire in support of the Marine Division.

  Contact:
   Patricia Perlini
   972.952.4033


SOURCE: Raytheon Company



Web site:  http://www.raytheon.com/