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Australia's Air Warfare Destroyer Build Begins With Signing of Contract Valued at US$1.2 Billion

CANBERRA, Australia, Oct. 4, 2007 /PRNewswire/ -- Representatives of the AWD Alliance (the Commonwealth of Australia, Raytheon Australia and ASC Shipbuilding) have signed Australia's Air Warfare Destroyers (AWD) Phase III contract signaling the start of building.

As the AWD Mission Systems Integrator, Raytheon Australia will "Australianize" the combat system around the Aegis core. The contract covers the design, development and procurement of the "Australianized" combat system, and is valued at US$1.2 billion (A$1.4 billion) to Raytheon.

The AWD Alliance is committed to working together as an integrated team to deliver the Royal Australian Navy's (RAN) next generation Hobart Class AWDs. The AWDs will provide air defense for accompanying ships, land forces and infrastructure in proximate coastal areas and for self-protection against attacking missiles and aircraft.

Ron Fisher, managing director of Raytheon Australia, said, "Today's milestone is about our commitment to deliver 'no doubt' Mission Assurance to the RAN through Raytheon's expertise as a Mission Systems Integrator. We've prepared well in the earlier phases, and today marks the moment when the alliance begins building Australia's most advanced ships."

Dan Smith, president of Raytheon Integrated Defense Systems and a member of the AWD Principals' Council, affirmed the importance of the program to Raytheon. "Our strong pedigree as a Mission Systems Integrator provides our Australian team with 'reachback' - the ability to draw on the company's collective wealth of experience and expertise for the program's success.

"Raytheon is proud to be a partner with this team in what will be the most advanced shipbuilding project in Australia's history," he said.

Raytheon Australia was selected for the AWD Alliance in April 2005 and will continue to partner with Australian industry over the life of the project. Further information about industry involvement may be found at http://www.ausawd.com/ and http://www.raytheon.com.au/

With facilities located across the country, Raytheon Australia is a highly capable prime contractor with an engineering and technical workforce of some 1,300 backed by world-class management and quality systems. This local presence is bolstered by strong relationships with small and medium sized enterprises and access to the global resources of Raytheon Company.

Raytheon Australia is a wholly owned subsidiary of Raytheon Company (NYSE: RTN).

Raytheon Company, with 2006 sales of $20.3 billion, is a technology leader specialising in defence, homeland security and other government markets throughout the world. With a history of innovation spanning 85 years, Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems, as well as a broad range of mission support services. With headquarters in Waltham, Mass., Raytheon employs 73,000 people worldwide.

  Contacts:
  Raytheon Australia                  Raytheon Integrated Defense Systems
  Chloe Wilson                        Guy Shields
  0414 896 961                        978.858.5246
  Cwilson2Araytheon.com.au

SOURCE: Raytheon Company

CONTACT: Chloe Wilson of Raytheon Australia, 0414 896 961,
Cwilson2Araytheon.com.au; Guy Shields of Raytheon Integrated Defense Systems,
+1-978-858-5246

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

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