TEWKSBURY, Mass., Aug. 9, 2006 /PRNewswire/ -- Raytheon Company (NYSE: RTN) and Naval Sea Systems Command have finalized a $95.4 million contract modification for lightweight and heavyweight torpedo hardware, engineering and support services.

This contract modification adds fiscal year 2006 procurement quantities to the consolidated torpedo contract, awarded to Raytheon Integrated Defense Systems (IDS) in 2004. Also awarded was a $5 million contract modification for torpedo spares, production engineering and technical support for fleet operational requirements for the U.S. and Royal Australian Navy's light- and heavyweight torpedo inventories.

Raytheon was chosen as the U.S. Navy's prime production supplier based on the company's proven performance on existing torpedo contracts and demonstrated ability to work synergistically with the Navy to efficiently and cost effectively produce these hardware assets. Together, the U.S. Navy and Raytheon have formed a total enterprise partnership, Team Torpedo, dedicated to meeting the needs of U.S. and allied naval fleets.

"Our partnership with the U.S. Navy is focused on quality and performance," said Dan Martin, IDS vice president of Maritime Mission Systems. "Through this contract, we continue to work together on the ongoing development and production of the most advanced, reliable and effective undersea warfare weapons in the world."

Under the consolidated torpedo contract, Raytheon will deliver electronic systems and components, spares and services for 105 MK54 lightweight torpedoes and 107 MK48 heavyweight torpedoes, supporting the MK48 upgrade and configuration to CBASS (Common Broadband Advanced Sonar System), which entered full-rate production in June 2006.

Team Torpedo combines Raytheon's manufacturing, design engineering, and support services expertise with the systems engineering and testing capabilities of Naval Undersea Warfare Center (NUWC) operations in Newport, R.I., and Keyport, Wash. Work will be performed at Raytheon's Torpedo and Readiness Center, co-located with the U.S. Navy at NUWC Division Keyport and at the Maritime Mission Center in Portsmouth, R.I.

Integrated Defense Systems is Raytheon's leader in Joint Battlespace Integration providing affordable, integrated solutions to a strong international and domestic customer base, including the U.S. Missile Defense Agency, the U.S. Armed Forces and the Department of Homeland Security.

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:
  Carolyn Beaudry
  401.842.3550

SOURCE: Raytheon Company

CONTACT: Carolyn Beaudry of Raytheon Company, +1-401-842-3550

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