MCKINNEY, Texas, April 25, 2006 /PRNewswire/ -- Raytheon Company (NYSE: RTN) has been awarded a contract worth up to $70 million from BAE Systems to develop the hard-kill Active Protection System (APS) for Future Combat System (FCS) vehicles under a three-phase agreement. The initial phase is pegged at $10 million.

The Boeing Company, FCS Lead Systems Integrator, announced the selection of Raytheon as the APS developer earlier this month.

APS is a key element in a full-spectrum suite of "hit avoidance" technologies designed to keep FCS manned ground vehicles and their troops safe from harm. Using FCS's sensors and its common radar, the APS detects, tracks and defeats enemy threats with precision munitions in the blink of an eye.

"This selection will tap Raytheon's sensor, fire control and interceptor expertise to accelerate APS's development and integration with FCS manned ground vehicles and 'spin out' to current force vehicles," said Dennis Muilenburg, FCS program manager and Boeing vice president.

"BAE Systems is pleased to have a world-class product developer like Raytheon on the team to develop this critical element of FCS technology. We are looking forward to working with Raytheon on the development and integration of the active protection hard-kill subsystem into the overall vehicle suite of defensive capabilities. Raytheon brings a comprehensive systems engineering approach and innovative technology options to the APS development effort," said Sam Cole, FCS Manned Ground Vehicle program manager for BAE Systems.

"APS will shield warfighters and their vehicles from enemy threats," said Glynn Raymer, vice president of Raytheon Combat Systems. "Using a combination of sensor technologies and precision counter munitions instead of heavy armor, the new system will also help FCS meet its survivability requirements."

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.

  Contact:
   Kevin Ramundo
   972.952.2550

   Jenna Rosson
   972.952.6746

SOURCE: Raytheon Company

CONTACT: Kevin Ramundo, +1-972-952-2550, or Jenna Rosson,
+1-972-952-6746, both of Raytheon Company

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