AN/ALE-50 On Line With 1,000 Decoys Delivered.

LEXINGTON, Mass.--(BUSINESS WIRE)--May 19, 1998--Raytheon Systems Company, a unit of Raytheon Company (NYSE:RTNA)(NYSE:RTNB), has received a $5 million increase to an existing contract to provide an additional 50 AN/ALE-50(V) launchers and 150 magazines for the B-1 bomber. This is in addition to two production contract increases totaling $60.5 million the Air Force awarded the company in late 1997 and early 1998. This latest increase brings the total value of the contract since it was first awarded to approximately $110 million.

The original multi-year production contract for the ALE-50 Expendable Countermeasures Dispensing Systems was awarded in December 1996, and Raytheon began production deliveries of the towed radar decoy system in January 1998, one month ahead of contract schedule. Also in January 1998, Raytheon delivered its 1,000th decoy, which included 980 under the engineering manufacturing development contract, marking 24 months of on time performance for the company.

The basic ALE-50 system consists of a launcher, a launcher controller and the towed decoy. The decoy control/monitor electronics and power supply are contained in the launch controller. The launcher, which holds a number of decoy magazines, can be customized to fit any designated aircraft. The decoy has a 10- year shelf life and is packaged in a sealed canister which also contains the payout reel. The system was baselined on the F/A-18, and current plans are to procure the ALE-50 hardware in production quantities for the F-16, B-1 and F/A18 aircraft over the next five years.

Jack Gressingh of Raytheon System Company's Goleta, Calif., operations said, "The ALE-50 program has been conducted as an integrated product team. Its success as a project and as a product is a tribute to the entire ALE-50 government-contractor crew." He added, "We have a common goal of building the best protective system available at a reasonable cost and delivering it to the warfighter as quickly as possible."

Raytheon Company, based in Lexington, Mass., is a global technology leader with worldwide sales of more than $20 billion and more than 118,000 employees. The company provides state-of-the-art products and services in the areas of commercial and defense electronics, engineering and construction, and business and special mission aircraft. Raytheon has operations throughout the United States and serves customers in more than 80 countries around the world.

CONTACT: Raytheon Systems Company

Kearney Bothwell, 310/334-1665

www.raytheon.com