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FAA and Raytheon Agree to a $204 Million FAA Contract Modification to Provide Full LPV Performance for the Wide Area Augmentation System

    MARLBORO, Mass., Nov. 1, 2004  /PRNewswire-FirstCall/ -- The Federal
Aviation Administration and Raytheon Company (NYSE: RTN) have completed
negotiations on a contract modification for the Wide Area Augmentation System
(WAAS) to deploy what is termed "Full Lateral Precision with Vertical Guidance
(LPV) Performance."

    This modification restructures existing contract scope and does not
increase contract value. During the next four years, incremental improvements
will be made to the fielded system to expand benefits to users across North

    WAAS is a nation-wide network of reference, master and uplink stations
that augment the Global Positioning System satellite constellation to provide
the improved accuracy, integrity, and availability required for civil aviation
and other safety-of-life applications.  WAAS is the FAA's next-generation
satellite-based navigation system.  It was commissioned by the FAA in July
2003 and has been in continuous operational use since that time.

    LPV approach availability has exceeded 95 percent across more than 98
percent of the lower 48 states. WAAS conforms to the Satellite Based
Augmentation System standards published by ICAO (International Civil Aviation
Organization), providing worldwide interoperability of satellite navigation
systems.  Under the contract modification, approach and landing guidance
availability will increase to more than 99 percent across much of the North
American continent, improving safety and efficiency for pilots.

    "The contract modification marks another milestone in the continuing
satellite navigation partnership between Raytheon and the FAA.  We are pleased
to have been a part of the FAA's success in achieving WAAS initial operational
capability in 2003, and we look forward to continuing this relationship as
WAAS evolves into a seamless, high availability satellite-based navigation
system throughout North America," said Bob Eckel, vice president of Air
Traffic Management Systems at Raytheon.

    Work began this summer with the installation of four WAAS Reference
Stations (WRS) in Kotzebue, Bethel, Barrow, and Fairbanks, Alaska.   These
four new stations join the three existing stations in the state at Cold Bay,
Anchorage, and Juneau.  Together, they will support LPV coverage over most of
the state, and become an integral part of the Capstone Program, which is
substantially improving safety in the aviation-dependent 49th state.

    The Full LPV Performance contract modification will enhance the WAAS
integrity algorithms for increased approach availability during weather
disturbances as well as during normal conditions.  This is of particular
importance on the U.S. west coast and during periods of increased solar flare
activity.  Full LPV Performance will also increase the capacity, redundancy,
and security of the WAAS terrestrial communications backbone and add new
features for FAA operators and maintainers. It will also integrate new GEO
(geostationary earth orbit) satellites into the system, which are critical to
providing reliable, redundant GEO coverage to all users throughout North

    The FAA and NavCanada recently announced a bilateral agreement to install
four reference stations in Winnipeg, Goose Bay, Gander, and Iqaluit.  The four
sites will increase and expand LPV availability throughout much of Canada and
the northern United States.  John Crichton, Nav Canada's president and CEO,
sees this as a way to avoid "the cost of developing duplicate systems," and to
limit the need to invest in more ground-based ILS approach facilities.

    The FAA and the Mexican government are also planning to install five WRSs
in Mexico at Puerto Vallarta, La Paz, Mexico City, Meridia, and Tapachula.
These sites will increase and expand LPV approach availability in Mexico and
the American southwest in the same manner as the Canadian sites.

    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.

   Janet Kopec
   972 952 2547

SOURCE: Raytheon Company

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

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