TEWKSBURY, Mass., Jan. 27, 2005  /PRNewswire/ -- Raytheon Company (NYSE:
RTN) has been awarded a contract modification valued at $112.5 million to
provide three ship sets of Aegis Weapon System to the U.S. Navy.  This
equipment will be installed on the Arleigh Burke class destroyers, DDG110,
DDG111 and DDG112.

    This was the third and final option included in the contract, originally
awarded in December 2001.  As a result of this contract modification, the
total amount obligated by the U.S. Navy to this contract increases to $612.4
million.

    Raytheon Integrated Defense Systems (IDS) will provide one ship set of
hardware for each DDG, consisting of a SPY-1D(V) transmitter, three FCS Mk99
transmitters and shipboard spares.  Work will be performed in Sudbury and
Andover, Mass., and in Portsmouth, R.I.  Aegis production will continue at
Raytheon through June 2008.

    "With more than 25 years of Aegis experience, Raytheon is proud to build
and support these systems. The Arleigh Burke Class destroyers are 'built to
fight,' and this equipment stands up to that legacy with no doubt," said Dan
Martin, IDS vice president of Surveillance and Sensor Systems.  "I would like
to salute our workers from both the IBEW and the IAM for their committed
support to Raytheon, the U.S. Navy and the Aegis Program."

    Based in Tewksbury, Mass., Integrated Defense Systems is Raytheon's leader
in mission systems integration. With a strong international and domestic
customer base, including the U.S. Missile Defense Agency and the U.S. Armed
Forces, Integrated Defense Systems provides integrated air and missile defense
and naval and maritime warfighting solutions.

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

    Note to Editors: Additional Information

    Raytheon has been providing the Aegis equipment since 1978.  To date, for
the U.S. Navy, 27 transmitter sets have been shipped for the CG47 Ticonderoga
Class cruisers and 53 transmitter sets have been shipped for the DDG-51
Arleigh Burke Class destroyers. Additionally five sets of transmitters have
been shipped for the Japanese Kongo Class and four sets for Spanish F100
class. Backlog includes Aegis transmitters for U.S. Navy, Japan and Korea.

    The SPY-1D(V) transmitter is an S-Band multifunction phased array
shipboard radar used to acquire and track multiple targets in littoral
environments

    The Mk99 FCS is an X-Band Continuous Wave Illuminator used to provide
uplink and rear reference to the Standard and Extended Seasparrow Missiles

    This contract modification was originally announced by the Department of
Defense on Jan. 21, 2005

  Contact:
   Guy Shields
   978.858.5246


SOURCE: Raytheon Company



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