TEWKSBURY, Mass., March 12, 2007 /PRNewswire/ -- Raytheon Company (NYSE: RTN) received a $38.6 million Army contract to provide increased capability for warfighters now using the Patriot Advanced Capability-2 (PAC-2) configuration.

The contract is for test equipment upgrades and engineering as the first step in the upgrade of three Patriot battalions (12 fire units) from PAC-2 to the PAC-3 configuration. The intent of the so-called "Pure Fleet" effort is to upgrade Patriot fire units for the Army's worldwide requirements providing all fielded units with configuration-3 capability following the Army's decision in February 2006 to upgrade additional tactical Patriot fire units.

"This is a significant move forward for the Army and Raytheon as we recognized the importance of providing the most advanced air and missile defense capability to our warfighters to enable them to continue to meet current and emerging threats," said Pete Franklin, vice president of Integrated Air and Missile Defense for Raytheon Integrated Defense Systems. "As prime contractor and systems integrator for the Patriot system, we are committed and proud to provide our warfighters with superior battlefield air and missile defense systems and reliable, low-cost missiles."

The initial work includes software and hardware upgrades to Patriot test stations and engineering to address obsolescence in the factory and key suppliers. It is the first step in achieving "Pure Fleet" capabilities. The work will be performed at Raytheon's Integrated Air Defense Center in Andover, Mass.

Raytheon IDS is the prime contractor for the Patriot system and the system integrator for the PAC-3 configuration system that includes the affordable Guidance Enhanced Missile-T. As the system integrator, Raytheon IDS ensures that all Patriot system components provide the warfighter a reliable and lethal capability to defeat the threats in current and future combat environments.

Integrated Defense Systems is Raytheon's leader in Joint Battlespace Integration providing affordable, integrated solutions to a broad 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 2006 sales of $20.3 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 more than 80,000 people worldwide.

  Contact:
  Tom Saunders
  978.470.6404

SOURCE: Raytheon Company

CONTACT: Tom Saunders of Raytheon Company, +1-978-470-6404

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