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Raytheon, the FCS Ground Sensor Integrator, Announces Contract Awards for $308 Million in Ground Sensor Development Sub-Contracts

    PLANO, Texas, Aug. 16  /PRNewswire/ -- Raytheon Company (NYSE: RTN), the
Ground Sensor Integrator (GSI) for the U.S. Army Future Combat Systems (FCS)
program, has concluded initial negotiations with the companies selected to
fill ground sensor development requirements on five of the six previously
announced decisions. Each company has been authorized to proceed under limited
funding. Negotiations continue for the remaining effort and are expected to be
concluded soon.  The total value of the cost-plus- award-fee sub-contracts
awarded to date is $308 million.

  Awards are being made to:
  * Lockheed Martin Corporation Missiles and Fire Control, Orlando, Fla.,
    for development and prototypes of the following sensors and subsystems:
    Aided Target Recognition, and Reconnaissance and Surveillance Vehicle
    Mast.  Lockheed Martin's initial contract value will be $85.1 million
    for these two scopes of work.
  * Raytheon Network Centric Systems, McKinney, Texas, for development and
    prototypes of the following sensors: Combat Identification, Multi-
    Function Radio Frequency, and Medium Range Electro-Optical/Infrared.
    Raytheon's initial contract value will be $222.9 million for these
    three scopes of work.

    These development efforts form key elements of the FCS program and
continue assembling the best of industry to meet this national priority.  FCS
will field an unprecedented level of situational awareness, allowing the Unit
of Action to achieve greater speed, agility and battlefield flexibility than
current forces.  These sensors will provide the "content" within the network
centric shared information space upon which FCS is based.

    The GSI has yet to make awards for the Remote Chemical Detection System
and Small Unmanned Ground Vehicle (SUGV) Mission Payload Module sensors.

    Lockheed Martin and Raytheon, working under the integration management of
the GSI and the Lead Systems Integrator (LSI), Boeing-SAIC, and in cooperation
with the Manned and Unmanned Ground Vehicle integrators, will perform the
necessary trades and development activities to field sensor suites to meet ORD
(operational requirements document) requirements while maintaining program
affordability and balanced performance and sustainment.

    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.

   Dave Shea

SOURCE: Raytheon Company

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

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