TUCSON, Ariz., May 24, 2006 /PRNewswire/ -- Raytheon Company and Rafael Armament Development Authority have been selected to develop a new terminal missile defense interceptor to defeat a variety of low-cost, short-range ballistic missile threats. The source selection was made by the Israel Missile Defense Organization (IMDO).

"Raytheon's cooperation with Rafael ensures that Rafael's multi-mission interceptor is designed from the start for seamless insertion into U.S. terminal missile defense systems. Our approach provides the U.S. Army with a low-cost extended air defense option for the future," said Michael Booen, Raytheon vice president of Advanced Missile Defense programs.

"Our interceptor solution fundamentally redefines the performance-cost value equation for terminal missile defense, providing all-weather, hit-to-kill performance at a tactical missile price," said David Stemer, Rafael Missile Division general manager.

The Short Range Ballistic Missile Defense program is an IMDO initiative to address the proliferating threat of short-range ballistic threats. Such missiles and rockets are cheap, plentiful, easily concealed and largely exempt from international arms control accords. These relatively insignificant battlefield weapons can be transformed into deadly, strategic threats when fitted with unconventional warheads and deployed in large quantities.

Raytheon Company (NYSE: RTN), 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.

Note to Editors:

Raytheon is the leader in missile defense interceptors for both ground- and sea-based programs. Raytheon's hit-to-kill successes with the sea-based Standard Missile-3, part of the Aegis Ballistic Missile Defense Program, occurred Jan. 25, June 13 and Nov. 21, 2002, Dec. 11, 2003, and Feb. 24 and Nov. 17, 2005; and with the Ground-based Missile Defense program Oct. 2, 1999; July 13 and Dec. 3, 2001; and March 15 and Oct. 14, 2002.

  Contact:
  Sara Hammond
  520.794.7810

SOURCE: Raytheon Company

CONTACT: Sara Hammond of Raytheon, +1-520-794-7810

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