TEWKSBURY, Mass., Aug. 16, 2006 /PRNewswire/ -- Raytheon Company (NYSE: RTN) and Naval Sea Systems Command have finalized an $11 million modification to an existing contract for the company's AN/AQS-20A mine hunting sonar systems. The modification brings the total value of the contract, originally awarded in September 2005, to $104.9 million.

Under the contract, Raytheon Integrated Defense Systems (IDS) will manufacture, test and deliver 11 AQS-20A sets and associated support equipment and engineering services. The contract also includes an option for 11 additional systems, services and support equipment for 2007.

AN/AQS-20A, a component of the Organic Mine Countermeasures family of systems, is the primary mine hunting system integrated into the U.S. Navy's MH-60S airborne mine countermeasures helicopters. It provides critical capabilities in support of mine-clearing operations in both deep-ocean and littoral waters.

"The contract reflects the strength of the Raytheon-U.S. Navy partnership, working together to deliver highly capable, best value solutions to meet current and future needs," said Dan Martin, IDS' vice president of Maritime Mission Systems. "Through this contract, Raytheon is delivering on its commitment to continuous improvement -- advancing the mission critical capabilities of the system and meeting the producibility and affordability goals of the customer."

AN/AQS-20A enables the detection, classification and localization of bottom, close-tethered and volume mines. It is also the primary mine hunting mission system for the Littoral Combat Ship Flight 0. The proven and highly capable AN/AQS-20A system is towed undersea to scan the water in front and to the sides of the vehicle as well as the sea bottom for anti-shipping mines. The system uses sonar and electro-optical sensors to provide high-resolution images of mines and mine-like objects and high-precision location information.

Work on the contract will be performed at Raytheon IDS' Maritime Mission Center in Portsmouth, R.I., Arete Associates in Tucson, Ariz., and Raytheon Technical Services Company LLC in Norfolk, Va.

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/