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Raytheon Awarded U.S. Navy Engineering Services Contract Option Potentially Valued at $98.8 Million

    INDIANAPOLIS, Dec. 21, 2004  /PRNewswire/ -- Raytheon Company (NYSE: RTN)
has been awarded a one-year option with a ceiling of $98.8 million on an
existing indefinite delivery, indefinite quantity (IDIQ) contract with the
Naval Air Systems Command (NAVAIR).

    The contract option allows Raytheon Technical Services Company (RTSC) to
continue providing supplies and services required to plan, manage and execute
engineering, industrial, logistics and operational support services for the
NAVAIR customer base, including navigation systems, aircraft support and
mission planning. The award is the third of four one-year options available on
the contract that was awarded in December 2001. The maximum value of the
contract, including the base year and all options, is more than $449.8
million. Work will be performed in Indianapolis.

    "This IDIQ option award allows us to continue support to ongoing programs
such as BRU-33 Bomb Rack production, LAU-115 Missile Launcher technical
support, V-22 avionics support and mission-planning software, support for H-53
helicopter avionics components and Shared Reconnaissance Pod development and
production," said John Balaguer, RTSC vice president and general manager of
RTSC's Indianapolis-based business unit. "This month marks the end of our
eighth year of operation since our successful privatization of the facility in
January 1997. Our personnel will continue providing critical functions to
programs necessary to maintain platforms and systems such as the V-22, F/A-18
and F-14, and we look forward to another successful year in 2005."

    The contract allows NAVAIR to procure a wide variety of program support
services, including systems engineering and software engineering; technical,
manufacturing and life-cycle support; overhaul and repair; spares; and
integration. In-service engineering functions are also available under the

    Having obtained a Capability Maturity Model Integration (CMMI(R)) Maturity
Level 4 rating for software engineering as defined by the Software Engineering
Institute's Capability Maturity Model Integration, Raytheon's Indianapolis
operation is one of an elite group of only 50 companies worldwide that have
obtained a CMMI Level 4 or 5 rating. CMMI maturity levels are increasingly
used by government agencies and contractors to evaluate the potential for
organizations to produce quality products on time and within budget.

    Raytheon Technical Services Company LLC 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

    Raytheon worked with the U.S. Navy and the city of Indianapolis to
accomplish the largest and most successful full-facility military
privatization in U.S. history in January 1997. After the Naval Air Warfare
Center Aircraft Division, Indianapolis (NAWC ADI) facility was slated for
closure in the 1995 round of base realignment and closure actions, the city of
Indianapolis conducted a competition to select a private contractor to
privatize the facility in-place. Raytheon was selected to work with the Navy
and the city to ensure that the facility's capabilities would remain intact
and that customers would experience a seamless transition.

    Raytheon has a three-pronged approach to achieving process excellence:
Integrated Product Development System, an integrated set of best practices
tailored for the entire product life-cycle; Raytheon Six Sigma(TM), tools that
deliver value and integrate best practices for continuous process improvement;
and CMMI, process requirements and appraisal methods for creating, measuring,
managing and improving specific processes to assess process maturity.

    CMMI(R) is registered in the U.S. Patent & Trademark Office by Carnegie
Mellon University.

   Kristen Giddens Pinto-Coelho

SOURCE: Raytheon Company

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

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