Army Exercises Joint Tactical Terminal Production Option; Orders 16 Briefcase Terminals.

ST. PETERSBURG, Fla.--(BUSINESS WIRE)--Sept. 21, 1999--

Raytheon Company (NYSE: RTNA, RTNB) today announced $23 million in U.S. Army awards for development and production of the Joint Tactical Terminal/Common Integrated Broadcast Service Modules (JTT/CIBS-M). The awards consist of $13 million for continued JTT low-rate initial production (LRIP) and $10 million for development and production of JTT(B), a briefcase version of the system.

In exercising this contract option, the Army gives Raytheon the go ahead to produce an additional 106 JTT terminals and 16 JTT(B) terminals. The move signals the beginning of LRIP and increases to 353 the total number of JTT systems on order. The Army's decision follows Raytheon's meeting eight customer-defined criteria and its demonstration of "Software Build 3." Deliveries start May 2000 and continue through the second quarter of 2001.

JTT/CIBS-M gives warfighters tactical intelligence/targeting information and provides critical intelligence data links among battle managers, intelligence centers, air defenders, fire support elements and aviation nodes -- across the services. The system includes a family of terminals and modules that can be configured to meet diverse user needs. Surface and ground deployment is planned for JSTARS Common Ground Station (CGS), Aegis ship combat system, carriers, Patriot and THAAD. Airborne installations (JTT-A) are targeted for platforms such as Rivet Joint, AWACS, JSTARS, MH-47/53, and the P-3.

JTT(B), the briefcase variant, is a man-portable configuration slated for use by Army Special Operations. The system connects highly mobile warfighters with situational awareness and intelligence data previously available only in command centers. For example, paratroopers equipped with JTT(B) can determine the location of enemy forces and assets, the movement history of those forces and the identification of those assets -- anytime, anywhere.

Commenting on JTT(B)'s ability to improve warfighter effectiveness, Army product manager Lt. Colonel Stephen Kostek said, "The JTT(B) will provide a low cost approach and a significant capability not only to Special Operations forces, but also to Army users at Battalion level and below. The JTT(B) will provide SIGINT (signal intelligence) from the various IBS (Integrated Broadcast Service) networks, and it will also provide the capability to receive and process JSTARS Moving Target Indicator imagery and air threat data, via TADIL-A (Tactical Data Information Link-A)."

JTT's unique customer-contractor partnership has helped the team transcend a number of challenges. "The candor and openness of this partnership are among the most positive things I've seen in 20 years of DoD contracting," said John Oglesby, business development director of Raytheon Systems Company's Communication Systems Division. "I believe it's directly responsible for achieving new standards in development performance such as quantum leaps in implementing technology, and an absolute commitment to the Integrated Product Team process."

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.

NOTES TO EDITORS:

--Design and development will occur at the Raytheon Data Systems engineering facility in St. Petersburg, Fla. Production will occur at Raytheon's manufacturing center in Largo, Fla. The program accounts for approximately 120 jobs in the greater Tampa-St. Petersburg area and more than 25 jobs at other Raytheon locations.

--A JTT terminal consists of 33 circuit cards and 200,000 lines of software code. Each system is expected to perform reliably for a minimum of 10 years.