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Raytheon Awarded Phalanx 1B Upgrade Order for Royal Navy

LOUISVILLE, Ky., April 19, 2006 /PRNewswire-FirstCall/ -- Raytheon Company (NYSE: RTN) has been awarded a $57 million contract to produce 16 Phalanx Block 1B upgrade kits for the United Kingdom's Royal Navy.

The contract was signed between Devonport Royal Dockyard Limited (DRDL), the U.K Ministry of Defence's prime contractor for Phalanx, and Raytheon Systems Limited (RSL), the U.K subsidiary of Raytheon Company.

"This is a major undertaking for Raytheon," said Jim Wolf, director of Phalanx Systems for Raytheon Missile Systems in Tucson, Ariz. "Block 1B, with its surface mode and enhanced sensors, will provide the Royal Navy with unequalled capabilities in near-shore, littoral environments. The decision by the U.K. to invest in the latest Phalanx upgrade will significantly enhance the ship self-defense capabilities of the Royal Navy and does much to promote Phalanx in the international community."

All 16 kits will be produced at Raytheon Missile System's Louisville, Ky., facility and installed at the DRDL. The first kit will be delivered in September 2007 with the remaining kits following during a six-year period.

"This upgrade is vitally important, especially in the context of the evolving threats worldwide," said Paul Gilligan, head of platform integration for RSL. "It provides protection to ships and their crews against an increased number of threats including small, fast gunboats; standard and guided artillery; helicopters; mines and a variety of shore-launched, anti-ship missiles."

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.

Note to editors:

Phalanx is a rapid-fire, computer-controlled radar and 20-mm Gatling-gun system. The Block 1B, the most advanced system, provides unequalled capabilities in near-shore, littoral environments. It contains a fully integrated radar-infrared surveillance and tracking sensor suite, which provides for automatic or manual acquisition and track of enemy threats. This capability coupled with the fire power of the six optimized gun barrels guarantees protection of crews and their ships against an increased number of threats. More than 895 Phalanx systems have been built and deployed in the navies of 22 nations.

   John Eagles
   502.364.6768 - office
   502.727.9391 - mobile

SOURCE: Raytheon Company

CONTACT: John Eagles of Raytheon Company, +1-502-364-6768 or +1-502-727-
9391 (mobile)

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

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