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Raytheon Awarded $32 Million to Upgrade Canada's Phalanx System

    RESTON, Va., Dec. 8, 2004  /PRNewswire/ -- Canada's Department of National
Defence has awarded Raytheon Company (NYSE: RTN) $32 million ($44.6 CDN) to
provide repair, overhaul and upgrade services to an additional 16 Phalanx
systems for the Canadian Navy.

    In October 2004, two options totaling $32 million were exercised on an
omnibus contract initially awarded to Raytheon Canada by the Department of
Public Works and Services in June 2003. These options extend Raytheon's
service to 2009 and bring the total value of the contract to more than $57

    Under the contract, Raytheon provides total life-cycle support for
Canada's Phalanx Close-In Weapon Systems (CIWS), including fleet repair work,
field service support, overhauls, upgrades, overhaul support material and
engineering services.

    "Canada has made a significant commitment to enhancing its Navy's ship
self-defense capabilities, and Phalanx plays a critical role in that effort,"
said Dennis Kuklovsky, manager of Raytheon Canada's Phalanx CIWS program.
"We're pleased to assist in making the Canadian fleet one of the most modern
in the world."

    Work, including upgrade to the 1B configuration, will be performed by the
Services and Support Division (SSD) of Raytheon Canada, at its Naval Systems
Support (NSS) facility in Calgary, Alberta, Canada. The NSS facility has been
in operation since 1995. Its extensive technology and expertise provides an
all-inclusive service facility to provide total system life-cycle support for
the Phalanx CIWS.

    Raytheon Canada's SSD is a subsidiary of Raytheon Technical Services
Company LLC (RTSC) and is a Canadian leader in the provision of comprehensive
support services for high technology systems.

    RTSC provides technology solutions for defense, federal and commercial
customers worldwide. It specializes in product and systems support, customized
engineering and on-site engineering solutions.

    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.

    Note to Editors: Additional Information

    Phalanx, developed by Raytheon's Missile Systems, Tucson, Ariz., is a
rapid-fire computer-controlled radar and 20mm gun system that protects ships
from anti-ship missiles, surface craft and aircraft. It automatically
acquires, tracks and destroys enemy threats that have penetrated all other
ship defense systems. Phalanx detects, tracks and engages small surface craft
and mines, low-slow aircraft and helicopters, and high-G anti-ship missiles.
Phalanx provides situational awareness to the commanding officer and fire
control solutions to other weapon systems. More than 850 systems have been
built and deployed in the navies of 21 nations.

    Block 1B is an evolutionary, rather than revolutionary, enhancement of
Phalanx CIWS' capability to defeat the changing threat. One performance
enhancement is that Block 1B improves anti air warfare (AAW) by increasing the
number of hits achieved against high velocity maneuvering anti ship missile
threats. This is the single most significant improvement in AAW capability
since Block 1.

    Block 1B provides a surface mode to the ship's self-defense system and
expands the role of Phalanx to better defend Naval vessels against shoreline
threats. It enables Phalanx to: engage surface targets day or night, defend
against small high speed surface craft, detect and engage low speed air
targets, and maintain its primary role of defense against current anti-air
warfare threats.

   Kristen Giddens Pinto-Coelho

SOURCE: Raytheon Company

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

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