TUCSON, Ariz., Sept. 3  /PRNewswire-FirstCall/ -- The U.S. Navy awarded a
$440 million contract to Raytheon Company (NYSE: RTN) to develop and produce
the new STANDARD Missile-6 Extended Range Active Missile. SM-6 is being
developed to meet the Navy's requirement for an extended range anti-air
warfare missile (ER-AAW).

    "SM-6 not only ensures that the U.S. Navy anti-air warfare combatants will
defeat evolving and asymmetric air threats throughout its service life, but
its inherent capabilities also provide the basis for highly cost effective
spirals to meet future mission requirements," said Louise L. Francesconi,
president of Raytheon Missile Systems, which will develop, design, test,
produce and support SM-6.

    The initial, baseline SM-6 program provides an ER-AAW missile capability
against fixed and rotary wing aircraft, unmanned aerial vehicles and land
attack anti-ship cruise missiles in flight, both over sea and land. With a
future integrated fire control, SM-6 will provide the surface Navy with an
increased battlespace against over-the-horizon AAW (anti-air warfare) threats,
taking full advantage of the kinematics available to STANDARD Missile.

    SM-6 will employ Raytheon's STANDARD Missile-2 Block IV airframe and
proven seeker and guidance technology from across the company's product lines.
Raytheon's STANDARD Missile-2 Block IV is the latest version of SM-2 to enter
production and provides an extended range capability. The addition of state-
of-the-art active radar guidance enables unprecedented performance into a
highly reliable, lightweight, low-cost package.

    "By employing our combat proven Advanced Medium-Range Air-to-Air Missile
(AMRAAM) technology on our widely deployed and ship certified STANDARD
Missile-2 airframe, we have created a highly effective and affordable ER-AAW
solution with minimum risk for our Navy customer," said Edward Miyshiro,
Raytheon's Naval Weapons Systems vice president.

    "We are capitalizing on and taking advantage of the synergies and benefits
-- sharing technology, producing affordable systems and quick response time to
our customers -- we expected to realize by consolidating virtually all of
Raytheon's missile programs in Tucson several years ago, Miyashiro said.

    The U.S. Navy announced its intention in January 2003 to award a contract
to Raytheon Company to develop and produce a new extended range active
missile.

    Raytheon Company, with 2003 sales of $18.1 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 78,000 people worldwide.


   Contact:
   Sara Hammond
   520.794.7810


SOURCE: Raytheon Company

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