NORFOLK, Va., June 15, 2006 /PRNewswire/ -- Raytheon Technical Services Company LLC (RTSC), a subsidiary of Raytheon Company (NYSE: RTN), received a $31.5 million U.S. Navy contract to provide logistics support for the USC-38 satellite communications system.

Under the five-year performance based logistics (PBL) contract, RTSC will provide Mission Support to the Navy's Extremely High Frequency Satellite Program (NESP) AN/USC-38(V) equipment, including engineering and maintenance; materials and services to evaluate, test, repair, modify, package and ship systems assets; and spares and repairs support.

Supply support and equipment repair will be performed at RTSC's Norfolk, Va., and Chula Vista, Calif., facilities. Raytheon's Network Centric Systems will perform engineering support at its Marlborough, Mass., and Largo, Fla., locations. The contracting agency is the Navy Inventory Control Point -- Mechanicsburg, Pa.

"The scope of this contract award augments Raytheon's traditional repair support for this system and allows us to integrate our engineering, technology and logistics expertise to deliver total Mission Support to the Navy," said Ruben Ramos, RTSC's NESP PBL program manager. "Raytheon is dedicated to partnering with our customers to create innovative PBL solutions that increase operational availability, improve response time and lower total ownership costs -- providing our customers with what they need, when they need it -- every time."

PBL is replacing the conventional support approach in order to reduce costs and turnaround time of assets, improving operational availability for the Navy. PBL support provided will include: managing engineering and obsolescence issues; filling requisitions; reducing backorders; and warehousing and tracking material.

RTSC provides technology solutions for defense, federal and commercial customers worldwide. It specializes in Mission Support, counter-proliferation and counter-terrorism, base and range operations and customized engineering services. Mission Support -- Raytheon's integrated approach to providing total life-cycle support, predicting customer needs, sensing problems and proactively applying solutions -- enables Raytheon to maintain readiness and deliver operational capability on demand, enhancing customer mission success.

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.

Note to Editors: Additional Information

The AN/USC-38 terminal is part of the Navy's Extremely High Frequency Satellite Communications Program designed to work with the MILSTAR (Military Strategic & Tactical Relay) Satellite Constellation, the tactical and strategic multi-service satellite system designed to provide survivable communications for U.S. forces worldwide. It provides jam-proof strategic and tactical communications for submarines, major surface combatants and selected shore sites.

  Contact:
   Kristen Giddens Pinto-Coelho
   703.295.2535

SOURCE: Raytheon Company

CONTACT: Kristen Giddens Pinto-Coelho of Raytheon, +1-703-295-2535

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