HARLOW, United Kingdom, Feb. 15, 2006 /PRNewswire/ -- Raytheon Systems Limited (RSL), the U.K.-based subsidiary of Raytheon Company (NYSE: RTN), has been awarded a contract by the U.K. Ministry of Defence (MoD) to begin competitive "Assimilation Phase" studies for The Military Afloat Reach and Sustainability (MARS) program.

MARS will provide logistics support to Royal Navy vessels at sea comprising Royal Fleet Auxiliary tankers and specialist logistics ships to support expeditionary forces and carrier strike force operations.

The assimilation contract will lead to the final selection of the industry MARS Program Integrator, which will be responsible for forming the alliance to procure and support the MARS capability.

Jack Cronin, RSL's president and managing director, said: "This is an exciting contract for Raytheon and builds on our capability here in the U.K. as a major supplier to the MoD and experience as a Mission System Integrator for major U.S. Navy programs.

"Raytheon has considerable experience in large naval programs where alliances with industry and the customer have been key to successfully developing cost effective system-of-systems solutions. The MARS program will be executed in the U.K. and will benefit from Raytheon 'reach-back' by leveraging the investment in tools, processes, and subject matter expertise developed on our major U.S. Naval programs, which in turn delivers enhanced capabilities while minimizing risk to the MoD."

Upinder Dhinsa, vice president of Raytheon Integrated Defense Systems, said: "MARS represents an ideal opportunity for Raytheon to further extend our global systems integration expertise and offer a solution that will draw on the experience we have gained through our role on U.S. Navy programs, including DD(X), LPD 17, Australian Air Warfare Destroyer, CVN 21 and submarines.

"Our proven performance on ship systems integration programs, coupled with our established partnerships in the U.S. and abroad, positions us well to deliver a highly capable and affordable solution to the Royal Navy and enhance RSL's in-country ship systems skills and naval program expertise."

RSL employs more than 1500 people. The company is a prime contractor and major supplier to the U.K. Ministry of Defence and is involved in numerous, high-priority programs for the U.S. Department of Defense. RSL designs, develops and manufactures a range of high technology defense and commercial electronics.

Based in Tewksbury, Mass., Integrated Defense Systems is Raytheon's leader in Joint Battlespace 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 2005 sales of $21.9 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.

  Contacts:
   In the U.K.                        In the U.S.
   Mike Brown                         Guy Shields
   +44 (0)20 7569 5517                978.858.5246
   mike.brown@raytheon.co.uk

First Call Analyst:
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SOURCE: Raytheon Company

CONTACT: Mike Brown of Raytheon Systems Limited, +44 (0)20 7569 5517,
mike.brown@raytheon.co.uk; or Guy Shields of Raytheon Company, +1-978-858-
5246

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