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Raytheon Receives $112 Million Contract to Modify Three Destroyers

TEWKSBURY, Mass., Jan. 27, 2005 /PRNewswire/ -- Raytheon Company (NYSE: RTN) has been awarded a contract modification valued at $112.5 million to provide three ship sets of Aegis Weapon System to the U.S. Navy. This equipment will be installed on the Arleigh Burke class destroyers, DDG110, DDG111 and DDG112.

This was the third and final option included in the contract, originally awarded in December 2001. As a result of this contract modification, the total amount obligated by the U.S. Navy to this contract increases to $612.4 million.

Raytheon Integrated Defense Systems (IDS) will provide one ship set of hardware for each DDG, consisting of a SPY-1D(V) transmitter, three FCS Mk99 transmitters and shipboard spares. Work will be performed in Sudbury and Andover, Mass., and in Portsmouth, R.I. Aegis production will continue at Raytheon through June 2008.

"With more than 25 years of Aegis experience, Raytheon is proud to build and support these systems. The Arleigh Burke Class destroyers are 'built to fight,' and this equipment stands up to that legacy with no doubt," said Dan Martin, IDS vice president of Surveillance and Sensor Systems. "I would like to salute our workers from both the IBEW and the IAM for their committed support to Raytheon, the U.S. Navy and the Aegis Program."

Based in Tewksbury, Mass., Integrated Defense Systems is Raytheon's leader in mission systems integration. With a strong international and domestic customer base, including the U.S. Missile Defense Agency and the U.S. Armed Forces, Integrated Defense Systems provides integrated air and missile defense and naval and maritime warfighting solutions.

Raytheon Company, with 2003 sales of $18.1 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 Waltham, Mass., Raytheon employs more than 78,000 people worldwide.

Note to Editors: Additional Information

Raytheon has been providing the Aegis equipment since 1978. To date, for the U.S. Navy, 27 transmitter sets have been shipped for the CG47 Ticonderoga Class cruisers and 53 transmitter sets have been shipped for the DDG-51 Arleigh Burke Class destroyers. Additionally five sets of transmitters have been shipped for the Japanese Kongo Class and four sets for Spanish F100 class. Backlog includes Aegis transmitters for U.S. Navy, Japan and Korea.

The SPY-1D(V) transmitter is an S-Band multifunction phased array shipboard radar used to acquire and track multiple targets in littoral environments

The Mk99 FCS is an X-Band Continuous Wave Illuminator used to provide uplink and rear reference to the Standard and Extended Seasparrow Missiles

This contract modification was originally announced by the Department of Defense on Jan. 21, 2005

Guy Shields

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