EL SEGUNDO, Calif., Sept. 9  /PRNewswire/ -- Raytheon Company (NYSE: RTN)
has been notified it will be awarded a contract to modernize the radar system
on the U.S. Air Force's B-2 "Spirit" stealth bomber with the addition of a new
Active Electronically Scanned Array (AESA) antenna. Terms of the contract were
not disclosed. Raytheon Space and Airborne Systems (SAS) is the primary
subcontractor on the B-2 Radar Modernization Program (RMP) for prime
contractor Northrop Grumman Corporation, which will award the contract.

    Total value of the B-2 RMP to Raytheon, including the remaining
development work and a future production contract, is expected to be
approximately $600 million.  The majority of the radar work will be performed
in El Segundo, Calif. and Dallas, Texas.

    The contract begins the fourth phase of a multiyear program to retrofit
the B-2 bomber fleet with a new AESA radar antenna.  The scope of the system
development and demonstration award includes design, development, and
fabrication of engineering models and demonstration units, and flight test
activities for integration into the B-2 fleet.

    "Our AESA antenna design significantly improves the radar's performance
and operational stealthiness," said Rich Auerbach, Raytheon's program director
for the B-2 RMP. "Our solution boosts the radar's power, makes future upgrades
easier and was accomplished without making costly modifications to the 20-
year-old B-2 platform."

    The B-2 Radar Modernization Program began with a study that defined two
alternatives the government could pursue to improvements in radio frequency
usage between the B-2 and commercial systems.  The Air Force chose the AESA
option because of its inherent reliability and growth potential.

    "As the industry leader in AESA technology -- both the F-15 AESA and the
F/A-18 Super Hornet AESA are Raytheon systems -- we have the expertise to
produce a reliable active array in the specified band," said Raytheon SAS Vice
President Erv Grau.  "The antenna requires small, densely packed
transmit/receive modules to assure reliable ESA performance -- and no one
builds T/R modules better than Raytheon."

    The T/R modules have already become a success story for the program. Each
antenna requires more than 2,000 of the two-channel modules, making them the
single largest investment for the system. The modules are now fully qualified
with zero failures in the qualification test program, and Raytheon has
demonstrated its ability to mass produce them at an affordable cost.

    Raytheon Company's Space and Airborne Systems (SAS) designs, develops and
manufactures advanced systems for precision engagement; missile defense; and
intelligence, surveillance, and reconnaissance. Headquartered in El Segundo,
Calif., SAS has 11,000 employees and additional facilities in Goleta, Calif.;
Forest, Miss.; Dallas, McKinney and Plano, Texas; and several international
locations.

    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
   Sabrina Steele
   310.647.9067 office
   310.977.4998 mobilesksteele@raytheon.com


SOURCE: Raytheon Company

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