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Australia agrees to purchase Raytheon-Lockheed Martin Javelin anti-tank weapon system for Project Land 40-1 requirement

Tucson, AZ, October 6th, 2003 -- The U.S. Army has executed a Letter of Agreement (LOA) setting the stage for the sale of the Javelin anti-tank weapon system to Australia in support of its Project Land 40-1 requirement.

Project Land 40-1 calls for a Direct Fire Guided Weapon system that will equip the Australian Army's infantry, cavalry and commando units. The Australian armed forces effectively employed Javelin in combat during Operations Enduring Freedom and Iraqi Freedom.

The signing of the LOA will result in a contract award to the Raytheon-Lockheed Martin Javelin Joint Venture of approximately $60 million US. The Australian sale represents one of seven international customers that have selected Javelin over the past year and a half.

"Javelin's lethality and combat proven performance coupled with its low life cycle cost provides the Australian armed forces with the best anti-armor weapon system in the world," said Col. Lloyd McDaniels, U.S.Army Close Combat Weapon Systems (CCWS) project manager. "In Afghanistan and Iraq the Javelin not only proved to be a superior tank killer, but was extremely effective against buildings and field fortifications and for surveillance operations."

"With its sophisticated missile seeker and tracker, the lightweight, one man-transportable Javelin has proven to be the soldier's best means of engaging a full spectrum of target sets with well over 90 percent first-time gunner success rate," said Mike Crisp, president of the Javelin Joint Venture. "Additionally, Javelin has tremendous growth potential with the missile's modular construction, command launch unit (CLU) software enhancements and its adaptability to a wide range of platforms."

"Javelin has proven to be more than just the world's most lethal medium range anti-armor system, but with the CLU's stand-alone surveillance capability, it is ideally suited for peacekeeping and peace enforcement operations," said Howard Weaver, Javelin Joint Venture vice president.

Raytheon Company, which leads the joint venture, provides system engineering management and support for the Javelin Joint Venture and produces the CLU, missile guidance electronic unit and system software. Work is performed primarily at Raytheon Missile Systems in Tucson, Ariz., and at other Raytheon facilities in Texas, Massachusetts, California and the United Kingdom.

Lockheed Martin provides missile engineering and production support for the Javelin Joint Venture in Orlando, Fla., produces the missile seeker in Ocala, Fla., and performs missile all-up-round assembly in Troy, Ala.

The Javelin medium-range, anti-tank missile system is the world's first one man-transportable and employable fire-and-forget anti-armor missile system. The compact, lightweight Javelin is ideally suited for one-soldier operation in all environments (extreme cold, heat and wet conditions, indicative of mountain, desert and jungle climates). Australia's decision to purchase Javelin ensures their military's interoperability with the U.S. Army, Marine Corps and Special Operations Forces' deployed worldwide. Javelin is approved for international sales through the U.S. Army's Foreign Military Sales system and is available to meet national requirements for next-generation anti-armor weapon systems.

Raytheon Company (NYSE: RTN), with 2002 sales of $16.8 billion, is an industry leader in defense, government and commercial electronics, space, information technology, technical services, and business and special mission aircraft. With headquarters in Lexington, Mass., Raytheon employs more than 76,000 people worldwide.

Raytheon
Barbara Starr, 520-794-8580

Lockheed Martin
Joy Sabol, 321-276.2044
Amanda Wiley, 407-356-5351