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Raytheon Builds on Precision Munitions Success To Pursue Army Mid-Range Munition contract

TUCSON, Ariz., July 10, 2007 /PRNewswire/ -- Raytheon Company (NYSE: RTN) has teamed with General Dynamics Ordnance and Tactical Systems to submit a proposal for the systems design and development contract for the U.S. Army's Mid-Range Munition.

The XM1111 Mid-Range Munition is a precision-guided, 120 mm, gun-fired smart ammunition that will provide a dual-mode, beyond-line-of-sight capability for Future Combat System's Mounted Combat System. Beyond-line-of- sight is an extension of the traditional direct-fire fight that enables stand- off engagements at greater ranges. With a beyond-line-of-sight capability, armored vehicle gunners can engage targets traditionally denied by intervening terrain or existing structures in an urban environment.

"Mid-Range Munition and the beyond-line-of-sight capability that it brings to the Future Combat System's Mounted Combat System are critical to the survivability and lethality of the Future Combat System Brigade Combat Team," said Jim Riley, Raytheon Land Combat Product Line vice president. "We are committed to bringing this critical capability to the Army."

Raytheon has diverse experience in complex munition and missile systems integration and a long standing relationship as a supplier to the U.S. Army. Raytheon continues to provide the U.S. Army with mission-effective battlefield solutions for the 21st century as most recently demonstrated by the combat- proven effectiveness of the Excalibur precision-guided cannon artillery projectile.

Raytheon has delivered more than 1.3 million precision-guided munitions during the last 50 years, and General Dynamics Ordnance and Tactical Systems has been involved with the development and production of more than 3 million 120 mm tank cartridges. This vast development and production experience coupled with the expertise gained in the development, production and fielding of Excalibur will ensure that the U.S. Army receives the world's best and only array of gun-fired, precision-guided weapons.

During the last three years, the Raytheon team worked closely with the Army's Armament, Development and Engineering Center at Picatinny Arsenal, N.J., and the Office of Program Management for Maneuver Ammunition Systems in a successful science and technology program. The program was aimed at maturing technologies necessary to enable Mid-Range Munition to enter into a low-risk systems design and development program.

In March 2007, the Raytheon team successfully demonstrated a dual-mode seeker using a digital semi-active laser seeker and the imaging infrared sensor when its Mid-Range Munition successfully hit a T-72 tank at 5.2 kilometers (3.1 miles). This achievement was the capstone of a dual-mode seeker science and technology program that achieved its goals ahead of schedule and below cost.

Raytheon will evolve the proven and mature science and technology design into a producible tactical design that will meet or exceed all systems design and development contract requirements.

"Our team's familiarity with the integration of precision weapons, including sensor and fire control systems, reduces systems design, development, execution and platform integration risk for Mid-Range Munition," said William Patterson, Raytheon Mid-Range Munition program manager.

Raytheon Company, with 2006 sales of $20.3 billion, is a technology leader specializing in defense, homeland security and other government markets throughout the world. With a history of innovation spanning 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 73,000 people worldwide.

Note to Editors:

This proposal is in response to the Army's request for proposal W15QKN-07- R-0605, dated May 11, 2007.

For more information about Raytheon's Mid-Range Munition, see the Raytheon Precision Guided Projectiles Web feature at http://www.raytheon.com/feature/pgp

Everett Tackett, APR

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