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SAN DIEGO - BAE Systems and Raytheon Company (NYSE: RTN) have formed a team to pursue opportunities under the Distributed Common Ground System-Navy (DCGS-N) program. The system will share and disseminate intelligence data from a variety of network-centric sources.

The DCGS-N Enterprise Team, consisting of DCGS experts from BAE Systems and Raytheon, will design and demonstrate a Web-based intelligence, surveillance, and reconnaissance (ISR) and targeting capability to support naval operations and other U.S. government agencies, military services, and U.S. allies for a wide range of missions. The team also will research and offer suggestions on how best to transition these functions into the baseline DCGS-N program.

"Our mutually beneficial relationship with Raytheon illustrates our commitment to improving the sharing and access of mission net-centric intelligence across the naval enterprise," said Bill Ballhaus, president of Network Systems for BAE Systems.

"Raytheon is a leader in adapting the network-centric approach for the U.S. Air Force," said Michael D. Keebaugh, president of Raytheon Intelligence and Information Systems. "As the prime contractor for DCGS Block 10.2 and the developer of the DCGS Integration Backbone, we are eager to bring our technology expertise, along with BAE Systems, to the U.S. Navy."

DCGS-N, in combination with the DCGS Integration Backbone, will provide the network-centric operations backbone for the U.S. Navy and for the actionable and timely distribution of ISR data, processes, and systems. An enterprise DCGS-N solution will help naval combatant commanders make better operational decisions in major combat operations and the global war on terrorism.

About BAE Systems
BAE Systems is a global defense and aerospace company, delivering a full range of products and services for air, land, and naval forces, as well as advanced electronics, information technology solutions, and customer support services. BAE Systems, with 88,000 employees worldwide, had 2006 sales that exceeded $25 billion.

For further information, please contact:
Keith Lewis, BAE Systems
Tel: +1 858-675-5965 Mobile: +1 858-472-6958

Shannon Smith, BAE Systems
Tel: +1 703-907-8257 Mobile: +1 703-967-3854

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