MCKINNEY, Texas, Nov. 12, 2007 /PRNewswire/ -- The U.S. Army has selected Raytheon Company (NYSE: RTN) to provide a common sensor payload for manned and unmanned aircraft in a program that could represent more than $1 billion in potential sales.

The initial $11 million order to Raytheon is part of an indefinite delivery-indefinite quantity contract award that includes options up to $1.2 billion. The program calls for design and development, testing and air vehicle integration of a variant of Raytheon's Multi-spectral Targeting System.

"Raytheon looks forward to satisfying our commitment to the Army warfighter and delivering a best-value common sensor for reconnaissance, surveillance and target acquisition missions," said Mike Proch, vice president for the intelligence, surveillance and reconnaissance group of Raytheon Space and Airborne Systems. "In addition, Raytheon will meet Army force efficiency highest-priority capabilities, including common sensor operations, procurement, systems integration and mission support package."

"The sales potential covers integration, production and mission support of airborne electro-optical/infrared (EO/IR) sensor payloads for several Army aviation platforms," Proch said. Under the current award, follow-up production for the common sensor could be as many as 875 units. The work will be performed by Raytheon Space and Airborne Systems, McKinney, Texas.

Raytheon will take advantage of commonality gained as the prime sensor payload provider for the Army's Extended Range Multi-Purpose unmanned aerial system. The company has delivered 10 AN/DAS-2 electro-optical/infrared/laser designator sensors under a system design and development contract let in May 2005. At the beginning of this year, the Army ordered seven more systems under a low rate production option.

Raytheon will also employ modular configuration and customization expertise honed through the development of other EO/IR systems such as the AN/AAS-52 and AN/DAS-1 on Air Force Predator and Reaper unmanned platforms, respectively; the AN/AAS-44© on Navy MH-60R/S helicopters; and the AN/ZSQ-2 on special operations aircraft.

Raytheon Space and Airborne Systems is a leading provider of sensor systems giving military forces the most accurate and timely actionable intelligence available for the network-centric battlefield. With 2006 revenues of $4.3 billion and 12,000 employees, SAS is headquartered in El Segundo, Calif. Additional facilities are in Goleta and San Diego, Calif.; Forest, Miss.; Dallas, McKinney and Plano, Texas; and several international locations.

Raytheon Company, with 2006 sales of $20.3 billion, is a technology leader specializing in defense, homeland security and other government markets throughout the world. With a history of innovation spanning 85 years, Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems, as well as a broad range of mission support services. With headquarters in Waltham, Mass., Raytheon employs 73,000 people worldwide.

   Contact:
   Dave Desilets
   972.952.2239

SOURCE: Raytheon Company

CONTACT: Dave Desilets, +1-972-952-2239, for Raytheon Company

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