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Raytheon Resumes Production of TOW ITAS Precision Guidance Systems Under $32 Million Contract

MCKINNEY, Texas, April 21, 2005 /PRNewswire/ -- Raytheon Company (NYSE: RTN) will produce and deliver to the U.S. Army Improved Target Acquisition Systems (ITAS) under a $32.3 million contract from the U.S. Army's Aviation and Missile Command, Huntsville, Ala. From 1999 through 2003, the Army procured 709 ITAS units; the order announced today marks the resumption of system production.

ITAS is the advanced fire control system that guides TOW (Tube-Launched, Optically Tracked, Wire-Guided) weapon systems to their targets with surgical precision. The targeting system significantly increases TOW's effective range, improves the weapon's ability to hit a target with minimal collateral damage and allows a soldier to engage and destroy targets from safe stand-off distances. ITAS's 2nd generation FLIR (forward-looking infrared) sensor also provides long range reconnaissance and surveillance capability 24/7, in all weather and battlefield conditions.

ITAS is fielded in Operation Iraqi Freedom and Operation Enduring Freedom where it has demonstrated its value in all phases of the conflict and subsequent peace-keeping efforts.

Glynn Raymer, vice president of Raytheon Combat Systems, said, "Early on, soldiers used ITAS in its traditional role, but they soon discovered innovative uses for the system. For instance, using ITAS as a precision guidance system allowed our troops to take out urban targets without collateral damage to nearby homes, religious structures and cultural landmarks. As we continue to develop ITAS, it will support Raytheon's 'netted sensors strategy' by sharing critical target data with a variety of battlefield sensors and combat platforms."

Raytheon Company, with 2004 sales of $20.2 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 80,000 people worldwide.

Note to editors:

ITAS is designed and produced by Raytheon Network Centric Systems in McKinney and Dallas, Texas, where approximately 60 people support the program. 15 additional Raytheon employees produce ITAS components in El Segundo and Santa Barbara, Calif., Largo, Fla. and Midland, Ontario in Canada.

Operation Iraqi Freedom and the Army's Modularity Initiative drove the decision to reinstate ITAS as an Infantry Brigade Combat Team component. In 2004, Congress approved the Army's request for emergency funding to sustain ITAS's production line. Additional funds are included in the 2005 supplemental request.

   Patricia Perlini
SOURCE: Raytheon Company

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

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