Air Force Awards Raytheon B-2 Training System Contractor Logistics Support Contract.

LEXINGTON, Mass.--(BUSINESS WIRE)--Nov. 5, 1998--Raytheon Company (NYSE:RTNA)(NYSE:RTNB) has been awarded a $150 million indefinite delivery/indefinite quantity contract to provide contractor logistics support for the B-2 Spirit training system through 2008.

Under the contract umbrella, the Air Force's Aeronautical Systems Center has awarded Raytheon Systems Company an initial delivery order contract totaling more than $4.5 million. This delivery order contract calls for Raytheon to update aircrew training devices to support weapon system changes and system enhancement.

Raytheon Systems Company, under contract with the Air Force on the B-2 Aircrew Training Device program since 1985, is responsible for the development of three weapon system trainers, two mission trainers and a system support center. this award broadens Raytheon Systems Company's responsibilities to encompass all B-2 training system support and modification efforts, both for aircrew training devices and maintenance trainers.

"This contract award continues the mutually beneficial relationship between Raytheon and the Air Force B-2 community," said Frank Marchilena, a Raytheon senior vice president, executive vice president of Raytheon Systems Company and general manager of the Command, Control, Communication and Information segment. "By being responsible for both aircrew and maitenance trainers, we'll be able to provide support and modifications that deliver maximum cost savings, system commonality and fidelity of B-2 training devices."

In a cooperative effort, Raytheon Systems Company's Command, Control, Communication and Information segment will make pre-planned modifications to B-2 aircrew training devices while company's Training and Services segment will perform maintenance and sustaining engineering services on fielded training system equipment at Whiteman Air Force Base, Mo. Pre-planned modifications to the aircrew training devices, which will be conducted at the company's Binghamton, N.Y. plant, will mirror changes made to the weapon system and introduce advancements in simulation technology.

Under subcontract to Raytheon Systems Company, Northrop Grumman Corporation -- developer of the B-2 -- will provide aircrew academic instruction services at Whiteman Air Force Base, curriculum updates and maintenance training device modifications.

B-2 weapon system trainers previously delivered by Raytheon Systems Company enable aircrews to fly simulated missions literally anywhere in the world within contemporary mission environments. The complementary mission trainer, designed to teach the complex right seat function of this two-pilot penetrating bomber aircraft, supports practice on functions ranging from radar operation to weapons delivery.

Raytheon Company, based in Lexington, Mass., is a global technology leader that provides 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.