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Raytheon to Operate and Sustain X-Band Radars

Missile Defense Agency contract potentially worth $1.9 billion over 10 years

TEWKSBURY, Mass., March 17, 2008 /PRNewswire/ -- Raytheon Company (NYSE: RTN) has been awarded two task orders worth $28.3 million as part of a Missile Defense Agency indefinite delivery-indefinite quantity contract to operate and sustain the agency's X-Band radars as part of the Consolidated Contractor Logistics Services program. The contract has a potential value of up to $1.9 billion over 10 years.

The contract award signifies a long-term partnership between Raytheon and MDA to consolidate operations and sustainment of the agency's Raytheon-built family of X-Band radars in a flexible and efficient manner.

"This partnership provides the Missile Defense Agency with significant potential cost savings," said Pete Franklin, vice president for Raytheon Integrated Defense Systems National & Theater Security Programs. "The Consolidated Contractor Logistics Services contract applies Raytheon's whole-life services and support strategy to the MDA Ballistic Missile Defense System, allowing the agency to respond more effectively to its missile defense mission with enhanced availability, lower costs and reduced risk."

The work performed under the task orders is designed to improve operational availability and reduce the total cost of ownership by identifying and leveraging efficiencies and improvements throughout the missile defense mission.

The first task order, valued at $1.2 million, provides management services for the operation and sustainment of the Raytheon-developed X-Band radar (XBR) aboard the Sea-Based X-Band radar (SBX) vessel and subsequent task orders. The second task order, valued at $27.1 million, covers day-to-day management, direction and control, and operations and sustainment of the XBR on the SBX.

This contract was structured to include a five-year base period worth $756 million and five one-year options bringing the total potential value of the award to $1.9 billion. The goal is to reduce the total cost of ownership over 10 years.

The use of task orders provides Raytheon with significant agility to respond to MDA's mission needs. Work will be performed at Raytheon Integrated Defense Systems Missile Defense Center in Woburn, Mass., and Integrated Air Defense Center in Andover, Mass., and by Raytheon Technical Services Company personnel at sites designated by the MDA.

Integrated Defense Systems is Raytheon's leader in Joint Battlespace Integration providing affordable, integrated solutions to a broad international and domestic customer base, including the U.S. Missile Defense Agency, the U.S. Armed Forces and the Department of Homeland Security.

Raytheon Company, with 2007 sales of $21.3 billion, is a technology leader specializing in defense, homeland security and other government markets throughout the world. With a history of innovation spanning more than 85 years, Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems, as well as a broad range of mission support services. With headquarters in Waltham, Mass., Raytheon employs 72,000 people worldwide.

  Maureen Heard

SOURCE: Raytheon Company

CONTACT: Maureen Heard of Raytheon Company, +1-339-645-6664

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

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