TUCSON, Ariz., June 7, 2006 /PRNewswire/ -- Raytheon Company (NYSE: RTN) has been awarded a U.S. Navy contract with a potential total value of $424 million if all options are exercised for engineering and manufacturing to complete development of Standard Missile-3 (SM-3) Block IA and to continue Block IB development, leading to sea-based missile defense deployment. Initial funding of $96 million has been issued to support engineering services, engineering studies and technology development technical instruction efforts.

The SM-3 Block IA provides an incremental upgrade to improve missile reliability and supportability at a reduced cost. Block IB incorporates into the kinetic warhead an advanced two-color infrared seeker and a throttling divert and attitude control system providing additional capability against evolving threats.

"SM-3 is an excellent example of spiral development," said Ed Miyashiro, vice president of Raytheon Missile Systems' Naval Weapon Systems. "We are focusing on Mission Assurance to deliver near-term capability to the fleet, while we develop and integrate incremental block upgrades to counter the evolving ballistic missile threat."

SM-3 has transitioned from engineering development to manufacturing build process and is being built along with production SM-2s in Raytheon Missile Systems' factories in Tucson, Ariz., and Camden, Ark. The SM-3 kinetic warhead (KW) is built and tested at a state-of-the-art kill vehicle manufacturing facility in Tucson, which enables the company to incorporate the best of spacecraft quality and high-rate missile manufacturing expertise. The entire upper stage including KW and third stage also is integrated in Tucson before going to Camden for all up round integration.

Raytheon leads an integrated team that includes The Boeing Company, Aerojet and Alliant Techsystems. Work on SM-3 also is done in Anaheim and Sacramento, Calif., Camden, Ark., and Elkton, Md.

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:

The Department of Defense originally announced this contract award on May 26, 2006.

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 Company, +1-520-794-7810

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