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Raytheon Awarded $7 Million Contract for NATO SEASPARROW Spares, Engineering Support

TEWKSBURY, Mass., Dec. 21, 2005 /PRNewswire/ -- Raytheon Company (NYSE: RTN) has been awarded a $7.1 million U.S. Navy contract to provide NATO SEASPARROW depot support.

The contract calls for Raytheon Integrated Defense Systems (IDS) to provide Performance Based Logistics (PBL), repairs, manufacturing, test and delivery of NATO SEASPARROW replacement parts for the Naval Inventory Control Point (NAVICP) in Mechanicsburg, Pa. This is a sole source order issued under year 3 of the NATO SEASPARROW PBL contract. There are two option years remaining on the contract. Years four and five are valued at approximately $7.7 million and $8.3 million, respectively.

The PBL contract gives IDS direct responsibility for receiving, warehousing and tracking government furnished property while meeting delivery and performance metrics. In addition, this PBL contract gives Raytheon IDS direct responsibility for administering and supplying all NATO SEASPARROW technical support for U.S. Navy and Foreign Military Sales Cooperative Logistics Service Supply Agreement customers.

"In Raytheon IDS, our commitment includes focusing on customer needs throughout the product life cycle," said Dan Martin, vice president, IDS Surveillance & Sensor Systems. "This means helping to extend the life of our systems with product upgrades and reducing life cycle costs with whole life services and support."

Contract support will be performed at Raytheon IDS' Surveillance and Sensors Center in Sudbury, Mass., IDS' Integrated Air Defense Center in Andover, Mass., and at Raytheon Technical Services Company in Norfolk, Va.

Based in Tewksbury, Mass., Integrated Defense Systems is Raytheon's leader in Joint Battlespace Integration. With a strong international and domestic customer base, including the U.S. Missile Defense Agency and the U.S. armed forces, Integrated Defense Systems provides a wide spectrum of integrated air and missile defense and naval and maritime warfighting solutions.

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.

Notes to Editors.

Rear Admiral Michael S. Roesner is the Commander of NAVICP, which is one of the Naval Supply Systems Command's (NAVSUP) field activities. NAVICP procures, manages, and supplies spare parts of Naval aircraft, submarines and ships worldwide. NAVICP is responsible for more than 400,000 items of supply, $21 billion of inventory and annual sales of $4.2 billion. It has two locations: one in the Lawncrest section of Northeast Philadelphia and the other in Mechanicsburg, just outside Harrisburg, Pa.

NATO SEASPARROW, the forerunner of the Evolved SeaSparrow Missile (ESSM), is one of the world's most widely deployed ship self-defense systems.

  Guy Shields

SOURCE: Raytheon Company

CONTACT: Guy Shields of Raytheon, +1-978-858-5246

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

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