EL SEGUNDO, Calif., Oct. 19, 2004  /PRNewswire/ -- Raytheon Company's
AN/APQ-181 radar for the B-2 "Spirit" stealth bomber, now being upgraded to
include a new active electronically scanned array (AESA) antenna, has
successfully completed a production readiness review (PRR) for the
transmit/receive (T/R) module at the heart of the array.

    Raytheon Space and Airborne Systems (SAS) is the principal subcontractor
on the B-2 Radar Modernization Program (RMP) for prime contractor Northrop
Grumman Corporation.

    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.

    To achieve PRR, Raytheon's T/R module design for the B-2 AESA completed
qualification testing on schedule. The testing proved the modules could
perform in extreme temperatures, vibration and shock. Throughout the testing,
critical functions of the T/R modules evaluated were successful with no need
for rework or retest. More than 40 pilot production T/R modules had been
produced through the end of August.  The pilot modules are demonstrating
greater transmit and receive performance than required at a lower weight and
cost. At the end September, approximately 500 production modules were in
process or complete.

    "The B-2 T/R modules are a tremendous successful story for this program.
They are cheaper, faster and better than we ever anticipated and are providing
a strong foundation for the B-2 radar modernization program," said Rob Dorr,
Northrop Grumman program manager for the Radar Modernization Program.

    "This milestone proves Raytheon has the design and manufacturing expertise
to produce a reliable active array for the B-2," said Raytheon SAS vice
president Erv Grau.  "The B-2 is another success story in the Raytheon family
of AESAs that is also expanding mission effectiveness for the F-15 and F/A-18
aircraft."

    The new antenna will preserve legacy system radar performance and improve
reliability, and will make future growth easier.

    Completion of PRR was required before the system development and
demonstration (SDD) phase could begin. The Milestone B decision authorizing
SDD was signed on August 17, 2004; in September Raytheon received a $194
million contract from Northrop Grumman.

    The B-2 Radar Modernization Program began with a study that defined two
alternatives the government could pursue to provide 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.

    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.

    Raytheon Company's Space and Airborne Systems (SAS) designs, develops and
manufactures advanced mission 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 (NYSE: RTN), 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/