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Raytheon and EADS CASA North America's Team JCA to Build CN-235/C-295 Joint Cargo Aircraft in Mobile, AL

Mobile Regional Airport facility to support all North American CN-235/C-295 operations

MOBILE, Ala., April 3, 2006 /PRNewswire/ -- Team JCA -- led by Raytheon Company with EADS CASA North America -- has chosen the Mobile Regional Airport (MRA) as the final assembly and delivery site for its proposed CN-235/C-295 solution for the U.S. Army and U.S. Air Force Joint Cargo Aircraft (JCA) requirement. In addition, EADS CASA North America will establish at the MRA a new final delivery center for CN-235 and C-295 transport aircraft to be sold into the North American market.

The new co-located facility will create more than 150 jobs at full-production rate if the Team JCA aircraft is selected for the Army and Air Force requirements.

EADS CASA North America began operations in 2005 at its 13,000 sq. ft. customer service and training facility at MRA. It was built to support the U.S. Coast Guard's new CN-235 maritime patrol aircraft, designated HC-235A, as well as the more than 40 EADS CASA transport aircraft currently operated by 14 U.S. customers.

Regardless of the outcome of the JCA competition, EADS CASA North America has designated the MRA facility as the new completion and delivery center for CN-235s and C-295s in North America. Construction on the new delivery center will begin during the second quarter of 2006.

A joint Army and Air Force selection of the Team JCA aircraft will lead to further growth of the Mobile aircraft center to include final assembly for the airlifters, along with associated training and logistics support. Raytheon, as Team JCA prime, will establish a joint program office at the site.

"Team JCA has the superior total system solution for the Joint Cargo Aircraft requirement, including the only deployed, combat-proven, medium-lift intratheater aircraft. Our decision to build the Team JCA military aircraft at Mobile Regional Airport ensures a best-value solution for the Army, Air Force and the American taxpayer," said Jon Jones, president of Raytheon Space and Airborne Systems.

"EADS already has made a substantial commitment to the Mobile region, including the U.S. Coast Guard Support Center, Airbus Engineering Center and anticipated KC-30 tanker production facility at Brookley Field. These initiatives will be complemented and our investment significantly expanded by the Team JCA facility and the new CN-235/C-295 completion and delivery center at the MRA," said Ralph D. Crosby, Jr., EADS North America chairman and CEO. The final assembly and delivery site announcement was made today during an event in Mobile that was attended by many of Alabama's senior government leaders.

Commenting at the event on the Team JCA announcement, Gov. Bob Riley declared, "Alabama has a long history of leadership in aviation and aerospace, and Mobile is quickly becoming a center of aerospace excellence. Today's announcement reflects our longstanding commitment to the nation's defense and economy. This joint Raytheon/EADS CASA North America facility is another important step in expanding the high technology and engineering capabilities of Southern Alabama."

Sen. Richard Shelby said, "I am pleased that the Raytheon EADS North America team has selected the Mobile Airport as the final assembly and delivery site for the Joint Cargo Aircraft (JCA). The JCA will enhance the combat readiness of both the Army and Air Force, and I am proud that Alabama is positioned to play a role as the future home of the JCA assembly site. The Joint Cargo Aircraft facility will continue the expansion of the aerospace industry in Mobile and its Gulf Coast location will benefit from the qualified aerospace workforce already in the area."

"Raytheon and EADS CASA North America's selection of Mobile as the site of the Team JCA production and delivery center reflects the skill and strength of the South Alabama workforce and the unwavering support of our community for the warfighter," commented Sen. Jeff Sessions.

Rep. Jo Bonner remarked at the event, "EADS has become an important corporate citizen of Mobile. With this announcement we welcome Raytheon to the great city of Mobile and stand ready to support them and EADS CASA North America in meeting the requirements of the JCA aircraft program." The CN-235/C-295 military aircraft present the best operational and acquisition value for the Joint Cargo Aircraft mission, offering the lowest acquisition and direct operating costs of any airlifter in their category along with proven intratheater performance-necessary capabilities in effectively reaching the last tactical mile of combat operations in support of U.S. military forces. More than 260 CN-235s and C-295s are deployed with more than 24 air forces worldwide, demonstrating interoperability and interdependence with NATO countries and U.S. allies. Both the CN-235 and C-295 are combat proven in Iraq, Afghanistan, and Kosovo with U.S. and coalition forces.

Raytheon Space and Airborne Systems (SAS) is the leading provider of sensor systems giving military forces the most accurate and timely information available for the network-centric battlefield. With 2005 revenues of $4.2 billion and 13,000 employees, SAS is headquartered in El Segundo, Calif. Additional facilities are in Goleta, Calif.; Forest, Miss.; Dallas, McKinney and Plano, Texas; and several international locations.

Raytheon Company (NYSE: RTN), with 2005 sales of $21.9 billion, is an industry leader in defense and government electronics, space, information technology, technical services and special-mission aircraft. With headquarters in Waltham, Mass., Raytheon employs 80,000 people worldwide.

EADS CASA North America, a U.S. Corporation, is a wholly-owned subsidiary of EADS North America and the representative organization of EADS CASA in Spain. The company offers a complete range of military transport aircraft, including mission aircraft: from the heavy lifter A400M now under development to the reliable and worldwide known C-295, CN-235 and C-212. EADS CASA supports customers who operate more than 700 C-212s, CN 235s and C-295 military transport aircraft in 50 countries.

  For more information visit http://www.raytheon.com/TeamJCA/

   Lorenzo Cortes

   Lawrence Stein

SOURCE: Raytheon Company

CONTACT: Lorenzo Cortes, +1-310-334-4431, or Lawrence Stein,
+1-703-236-3326, both for Raytheon Company

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

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