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Raytheon, the FCS Ground Sensor Integrator, Announces Negotiations for $375 Million in Ground Sensor Development Sub-Contracts

    PLANO, Texas, July 8  /PRNewswire/ -- Raytheon Company (NYSE: RTN), the
Ground Sensor Integrator (GSI) for the U.S. Army Future Combat Systems (FCS)
program, has selected the companies to fill ground sensor development
requirements.

    Raytheon will now enter into negotiations with the selected companies. The
total value of the sub-contracts to be awarded at the conclusion of
negotiations will exceed $375 million.

    "The GSI's announcement today is the result of a very structured,
rigorous, and well-managed process resulting in best-value competitive
selections," said Steve Marion, senior program director for FCS Supplier
Management with the Lead Systems Integrator (LSI), Boeing-SAIC.  "Objectivity
was assured with the establishment of a firewall in December, 2002 to isolate
GSI personnel from all ground sensor developer bidders.  Objectivity was
maintained throughout by employing a joint Army, LSI, and GSI evaluation and
review team."

    The GSI will begin negotiations immediately with the following companies
to formalize sub-contract terms:

    Lockheed Martin Corporation Missiles and Fire Control, Orlando, Fla.:
Aided Target Recognition, Medium Range Electro-Optical/Infrared, and
Reconnaissance and Surveillance Vehicle Mast sensors.

    Raytheon Network Centric Systems, McKinney, Texas: Combat Identification,
Multi-Function Radio Frequency, and Medium Range Electro-Optical/Infrared
sensors.

    "The integration of the best-of-domain technologies these companies
provide will give our soldiers a complete, networked picture and incomparable
knowledge of the battlefield," said Barbara Johnson, vice president and GSI
program manager. "FCS allows our warfighters to exploit information dominance
and Joint interoperability for continued battlespace superiority."

    Raytheon was selected as the FCS Ground Sensor Integrator as the result of
a competitive solicitation issued by the LSI in 2003.  The GSI has
responsibility to define, along with other stakeholders, the sensor
requirements for all manned and unmanned ground platforms that make up the FCS
Unit of Action. In addition, the GSI is responsible for the management of
sensor developments, the integration of sensors, and the spiral development of
future sensing capabilities for FCS.

    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.


  Contact:
   Dave Shea
   703.284.4245


SOURCE: Raytheon Company

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



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