INDIANAPOLIS, Jan. 12, 2006 /PRNewswire/ -- A subsidiary of Raytheon Company (NYSE: RTN) has been awarded a $2.1 million contract by the U.S. Air Force (Aging Aircraft Systems Squadron, Wright-Patterson AFB, Ohio) to design and develop an interface modification for the existing Triple Ejection Rack (TER-9A) to expand the munitions capability of the F-16 aircraft. Options included in the contract provide a potential additional value of $6.3 million.

"With the enhanced capability to provide more precision-guided weapons per sortie at a lower cost, the Smart Triple Ejection Rack (Smart TER) will have the ability to become a true force multiplier and serve a vital role toward enabling mission success," stated Lt. Col. Phil Louden, Aging Aircraft Systems Squadron commander.

Under the basic contract, Raytheon Technical Services Company LLC (RTSC) will design, develop and test a Smart TER. Program options can be exercised for the production of a limited number of proof-of-concept units. Work will be performed in Indianapolis.

"There is a compelling combat need for this modification," said Larry Parsons, program manager for Aircraft Auxiliary Systems at RTSC. "This addition of smart weapons to the force commanders' arsenal not only provides them flexibility but also significantly increases the precision munitions available to them."

To provide this enhanced capability, the aircraft interface of the TER-9A will be modified to allow it to carry multiple smart weapons, including the JDAM (Joint Direct Attack Munition), the Wind Corrected Munitions Dispenser, and MALD (the Miniature Air Launched Decoy), in addition to the conventional weapons it currently carries. By modifying an existing ejection rack to provide the increased capability rather than adding additional carriage equipment to the aircraft, the Smart TER program can significantly reduce the logistics footprint and cost.

Raytheon has a long history of successfully designing, developing and producing weapons carriage and release systems in response to customers' critical mission needs. The knowledge and best practices developed through years of experience allow Raytheon to develop a low-risk, rapid-response solution for the Smart TER requirement.

"Raytheon recognizes that the Smart TER is imperative for the Air Expeditionary Force and has the experience to deliver this breakthrough technology quickly and cost-effectively," said John Balaguer, RTSC vice president and general manager of RTSC's Indianapolis-based business unit. "Our experience also provides excellent insight into future supportability requirements the Smart TER program is likely to encounter, allowing us to design a solution informed by likely future requirements to extend the Smart TER life and ensure it remains a significant component in successful missions for years to come."

Raytheon Technical Services Company LLC, a subsidiary of Raytheon Company, provides technology solutions for defense, federal and commercial customers worldwide. It specializes in Mission Support, counter-proliferation and counter-terrorism, base and range operations and customized engineering services. Mission Support-Raytheon's integrated approach to providing total life-cycle support, predicting customer needs, sensing problems and proactively applying solutions-enables Raytheon to maintain readiness and deliver operational capability on demand, enhancing customer mission success.

Raytheon Company, with 2004 sales of $20.2 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 80,000 people worldwide.

Note to Editors: Additional Information

Raytheon's Miniature Air Launched Decoy is a low-cost, air-launched programmable craft that accurately duplicates the combat flight profiles and signatures of U.S. and allied aircraft. In addition to protecting valuable aircraft, MALD offers counter air operations to neutralize, if not destroy, air defense systems that pose a threat to U.S. and allied pilots.

  Contact:
   Kristen Giddens Pinto-Coelho
   703.295.2535

SOURCE: Raytheon Company

CONTACT: Kristen Giddens Pinto-Coelho of Raytheon, +1-703-295-2535

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