FLORENCE, Italy, PARIS, and TUCSON, Ariz., Sept. 14  /PRNewswire-FirstCall/
-- Raytheon Company and EADS SPACE Transportation have signed a cooperative
agreement to begin collaborating on ballistic missile defense (BMD)
interceptor programs in Europe, the United States and around the world.

    The agreement establishes a framework to enable and structure formal
discussions between the two companies to identify and pursue business
opportunities in the emerging global ballistic missile defense market.  Areas
of immediate focus include developing mutual business opportunities in
variants of existing and emerging exoatmospheric multi-stage BMD interceptors.

    "With the proliferation of ballistic missiles and a growing global need
for missile defense, we are proud to work with Raytheon, acknowledged partner
in BMD exoatmospheric interceptors and systems," said Herve Guillou, CEO EADS
SPACE Transportation. "In addition to exo-interceptors and interceptor
components, we will strive to foster our transatlantic relationship in other
areas including civil space programs."

    "EADS SPACE Transportation is a natural partner for us in transatlantic
and global BMD. EADS SPACE Transportation has the mature, complimentary
technology that is key to building highly capable interceptor systems, as well
as compatible and balanced long-term business relationships," said Louise
Francesconi, Raytheon's Missile Systems president. "Beyond domain expertise
and formidable industrial capability, EADS is a pan-European company with a
proven capacity to develop and integrate complex multi-country and multi-
company programs like Ariane 5."

    Raytheon is a global leader in BMD and has developed for operational
deployment all of the United States' exoatmospheric interceptors, including
the land-based Exoatmospheric Kill Vehicle for Ground-based Midcourse Defense,
and the sea-based STANDARD Missile-3 for Aegis BMD. Additionally, with
Northrop Grumman, Raytheon is developing the Kinetic Energy Interceptor.

    EADS ST has proven across-the-board capabilities in missile defense and
strong, unique capabilities making the company Europe's leader in ballistic
missile defense technology. EADS ST has expertise in key areas of missile
defense including: domain knowledge, ballistic threat and ballistic warfare,
system integration and engineering, state-of-the-art, high-performance, carbon
composite interceptor stages, and advanced solid and liquid divert propulsion.

    For BMD mission solutions, in addition to interceptors, Raytheon is a key
contractor for numerous missile defense sensors, command and control, battle
management and weapons systems including: Patriot Air and Missile Defense
System; Upgraded Early Warning Radars; naval BMD systems & radars; the THAAD
Ground-Based Radar; Sea-Based X-band radar; Space Tracking and Surveillance
System; and Forward-Based X-band radar. Additionally, as part of
ThalesRaytheonSystems, the company is building NATO ACCS, which is the
foundation for NATO BMD Command, Control, Battle Management and
Communications.

    EADS SPACE Transportation is the European leading company for civil and
military space transportation and manned spaceflight. EADS SPACE
Transportation is a wholly owned subsidiary of EADS SPACE, which is dedicated
to providing civil and defense space systems and present in France, Germany,
United Kingdom and Spain. In 2003, EADS SPACE Transportation had a turnover of
1.2 billion euros and 4,500 employees.

    EADS is a global leader in aerospace, defense and related services. In
2003, EADS generated revenues of €30.1 billion and employed a workforce of
more than 100,000.

    Raytheon Company (NYSE: RTN), with 2003 sales of $18.1 billion and 78,000
employees worldwide is an industry leader in defense and government
electronics, space, information technology, technical services, and business
and special mission aircraft.


   Raytheon media contact:            EADS ST media contacts:
   Sara Hammond                       Dr. Christian Erles
   520.794.7810                       33-1-39-06-3253


SOURCE: Raytheon Company

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