TUCSON, Ariz., Aug. 18  /PRNewswire/ -- Raytheon Company (NYSE: RTN) has
been awarded $287 million in Fiscal Year 2004 as part of a full-rate
production contract to supply the U.S. Navy with the next-generation Block IV
Tomahawk cruise missile. The Navy and Raytheon have entered into a multi-year
procurement contract to replenish the Tomahawk inventory. The value of this
contract could reach $1.6 billion once all of the procurement orders are
placed over the next five years.

    Work is expected to be completed on this initial missile order by December
2006. Work will be done at Raytheon's Missile Systems businesses in Tucson,
Ariz., and Camden, Ark. The first low-rate production Block IV missiles were
delivered to the Navy in May.

    "The Navy-Raytheon team is very honored and excited to provide the
warfighter the Block IV Tomahawk missile.  This revolutionary weapon, with its
flexible targeting and loitering capabilities builds on the tremendous 32-year
tradition and success of the legacy Tomahawk program," said Navy Capt. Bob
Novak, Tomahawk All-Up-Round program manager. "The Navy's first weapons multi-
year contract ensures that the fleet will get the best possible cruise missile
at the best price."

    "Reaching this full-rate production milestone is a testament to the hard
work and dedication of everyone who was part of the design, development,
testing and now, production, of this next-generation system," said Louise L.
Francesconi, Raytheon Missile Systems president. "This new Block IV missile is
the result of the collective commitment of the Navy and Raytheon to provide
affordable, operational capabilities for critical long-range, precision strike
missions. This multi-year full-rate production contract confirms the Navy's --
and Raytheon's -- commitment to deliver this needed capability to the
warfighter."

    Block IV Tomahawk will be the centerpiece of the Navy's new Tomahawk
Baseline IV Weapons System.  The system integrates the Block IV missile with
improved mission planning and platform weapons control capabilities. This
latest version of the Navy's surface- and submarine-launched precision strike
standoff weapon incorporates innovative technologies to provide unprecedented
operational capabilities while dramatically reducing acquisition, operations
and support costs. The Block IV missile will have a 15-year warranty and
recertification cycle, compared to the Block III variant's eight-year
recertification cycle.

    The new capabilities that Block IV Tomahawk brings to the Navy's sea
strike capability are derived from the missile's two-way satellite data link
that enables the missile to respond to changing battlefield conditions. The
strike controller can "flex" the missile in flight to preprogrammed alternate
targets or redirect it to a new target. This targeting flexibility includes
the capability to loiter over the battlefield awaiting a more critical target.
The missile can also transmit battle damage indication imagery and missile
health and status messages via the satellite data link.  For the first time,
firing platforms will have the capability to plan and execute Global
Positioning System-only missions. Block IV will also introduce an improved
anti-jam GPS receiver for enhanced mission performance.

    The Navy and Raytheon are entering into a five-year procurement contract
to replenish Tomahawk inventory at the most affordable cost. The legacy
program Tomahawk missile is the Navy's weapon of choice for critical, long-
range precision strike missions against high value, heavily defended targets.
The Block IV costs about half the price of a newly built Block III missile.

    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.


  Contact:
   Alan D. Fischer
   520.794.1211


SOURCE: Raytheon Company

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