TUCSON, Ariz., June 12, 2006 /PRNewswire/ -- Raytheon Company (NYSE: RTN) has been awarded the majority share of U.S. Air Force competitive contracts for Paveway™ II Laser Guided Bomb (LGB) components for fiscal year 2006.

The $33.8 million in contracts calls for Raytheon to provide the Air Force with LBG computer control groups and air foil groups that transform "dumb" bombs into precision guided munitions.

Work will be done primarily at Raytheon facilities in Tucson, Ariz., and Dallas, Texas.

The Paveway LGB system features an onboard guidance system, the computer control group that detects and guides the unit to a target illuminated by an external laser source. Since first developed in 1968, the evolving Paveway series of LGBs has revolutionized precision delivery against tactical target sets including bunkers, buildings, bridges, runways, aircraft shelters and missile launchers.

"The Paveway semi-active, laser-guided munitions greatly reduce the number of weapons needed to destroy a target and also feature accuracy, reliability and cost-effectiveness previously unobtainable in conventional weapons," said Capt. Scott Fitzner, Paveway II program manager at Hill Air Force Base, Utah. "Laser-guided bombs have been the weapon of choice in every conflict since Operation Desert Storm. More than 8,700 LGBs were used in Operation Iraqi Freedom, making up about half of all the air-launched, precision-guided munitions used."

The Air Force awarded Raytheon's successful Paveway II the majority of the funding available for the fiscal year LGB 2006 production award, including the maximum computer control group award allowed under the competitive contract.

Raytheon's legacy of more than 35 years of LGB development and manufacturing experience has seen more than 250,000 Paveway II precision-guided weapons delivered to the U.S. and more than 35 allied nations for use on 25 different aircraft.

Raytheon also developed and produces the battle-proven Enhanced Paveway™ family of precision-guided munitions that features a dual-mode GPS/laser guidance capability that can be used in all weather conditions against a variety of targets. Raytheon's Enhanced Paveway II remains the only low-cost, dual-mode, direct-attack weapon system that is combat proven and in full-rate production for more than five years for U.S. and allied forces. Enhanced Paveway II is also programmed for integration on the Joint Strike Fighter and Eurofighter aircraft.

Raytheon is the sole provider of the Paveway family of precision-guided weapons. Paveway is a trademark of Raytheon Company.

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:
  Alan D. Fischer
  520.794.1211

SOURCE: Raytheon Company

CONTACT: Alan D. Fischer of Raytheon Company, +1-520-794-1211

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