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U.S. Army Awards Raytheon $80 Million Patriot Engineering Services Contract

TEWKSBURY, Mass., March 21, 2006 /PRNewswire/ -- Raytheon Company (NYSE: RTN) has been awarded an $80 million contract modification from the U.S. Army Aviation and Missile Command to provide engineering services support to the Patriot Air and Missile Defense program.

The award provides additional funding for the second of four one-year options to the fiscal year 2004 base award for Raytheon Integrated Defense Systems (IDS) to provide engineering services in support of Patriot air and missile defense systems.

"This contract reflects customer confidence in our ability as prime contractor to continue to provide a reliable, scaleable Patriot air and missile defense capability," said Rick Yuse, vice president, Raytheon IDS Integrated Air Defense business area. "We are committed to ensuring Patriot remains the cornerstone of the U.S. Army's integrated air defense system against all threats well into this century."

Engineering support includes system and software engineering, hardware engineering, system testing, quality assurance, configuration management, logistic support and program management. In particular, the contract funds specific tasks, including the implementation of the architecture for the first phase of the Combined Aggregate Program (CAP), CAP phase 2 studies, system of system architecture studies, Patriot Advanced Capability 3 (PAC-3) missile integration and missile segment enhancement, and conducting annual service practice missile firings.

The contract also calls for engineering services tasks to be performed specifically for Germany, Israel, Japan, Kuwait, the Netherlands, the Kingdom of Saudi Arabia, Spain, Greece and Taiwan. Work will be performed at Raytheon IDS Headquarters in Tewksbury, Mass.; Integrated Air Defense Center in Andover, Mass.; Integrated Force Protection and Security Center in Huntsville, Ala.; and the Mission Capability Verification Center at White Sands Missile Range, N.M.

Raytheon Company is the prime contractor for the Patriot system and the system integrator for the configuration 3 system. As the system integrator, Raytheon ensures that all Patriot system components provide the warfighter a reliable and highly lethal capability to defeat the threats in current and future combat environments.

Integrated Defense Systems is Raytheon's leader in Joint Battlespace Integration providing affordable, integrated solutions to a strong international and domestic customer base, including the U.S. Missile Defense Agency and the U.S. armed forces.

Raytheon Company, with 2005 sales of $21.9 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:

The CAP program aligns the Patriot system to incorporate and field Medium Extended Air Defense System (MEADS) Major End Items (MEIs) as they become available. CAP increment 2 introduces the MEADS MEIs for fielding.

The $80 million announced here is in addition to the $65 million contract for engineering services in support of Patriot air and missile defense systems Raytheon announced Feb. 16, 2006.

   Guy Shields

SOURCE: Raytheon Company

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

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

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