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Raytheon Awarded $304 Million for Ballistic Missile Defense System Upgrades

TEWKSBURY, Mass., July 11, 2007 /PRNewswire/ -- The Missile Defense Agency has awarded Raytheon Company (NYSE: RTN) a $304 million contract to develop advanced tracking and discrimination capabilities for the Ballistic Missile Defense System (BMDS) forward based AN/TPY-2 radar.

Under the contract, Raytheon is responsible for the development and test of radar software, various engineering tasks, maintenance and support, infrastructure upgrades and deployment mission planning. Work will be performed at the company's Missile Defense Center, Woburn, Mass., and the Warfighter Protection Center, Huntsville, Ala.

"This award underscores the importance of providing our warfighters with state-of-the-art missile defense technologies to address emerging threats," said Pete Franklin, vice president, National & Theater Security Programs for Raytheon Integrated Defense Systems (IDS). "The critical capabilities that Raytheon is developing will track missiles over a wide range and help guide interceptors to their targets."

The BMDS program has been designed to counter evolving threats through the development and release of spiral capabilities. The first forward-based capability spiral was released on schedule in October 2006 and is now operational. Raytheon IDS is currently developing the second forward-based capability spiral with release planned in early 2008.

Raytheon IDS designed and built the AN/TPY-2 radar drawing on extensive sensor knowledge from its X-Band "Family of Radars." A high-power, transportable X-Band radar, the AN/TPY-2 is designed to detect, track and discriminate ballistic missile threats. It maximizes the capability of the BMDS to identify, assess and engage threats to the U.S., deployed forces and allies.

As the prime contractor for this program, Raytheon IDS has delivered the first two of five planned AN/TPY-2 radars to the Missile Defense Agency. The first radar, delivered in November 2004, is currently deployed in Japan. It is the first new Missile Defense Agency system to be developed and deployed as an operational asset outside the U.S. The second AN/TPY-2 radar recently completed acceptance testing at Vandenberg Air Force Base, Calif. Raytheon is also responsible for whole-life engineering support for AN/TPY-2 radars under a contract awarded in June 2005.

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 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.

Contact:
Maureen Heard
339.645.6664



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