BASF Awards Petrochemical Projects Worth More Than $120 Million To Raytheon.

Business/Technology Editors

CAMBRIDGE, Mass.--(BUSINESS WIRE)--March 29, 2000

Raytheon Company (NYSE:RTNA)(NYSE:RTNB) announced today that BASF Aktiengesellschaft has awarded Raytheon Engineers & Constructors (RE&C) two European petrochemical projects worth more than $120 million (U.S.).

One project is for modification and replacement of technology at BASF's plant in Ludwigshafen, Germany to enable the annual production of 600,000 metric tons of ethylbenzene and 550,000 metric tons of styrene monomer. The second project is for a new 890,000 metric tons per year ethylbenzene unit at BASF's plant in Antwerp, Belgium.

"BASF is making the investments to remain a leader in the ethylbenzene and styrene monomer markets," said Bob Wiesel, senior vice president, Petroleum & Chemicals for RE&C. "We intend to design and build world-class facilities that meet BASF's need for the lowest cost of production."

RE&C will perform both projects on a turnkey basis, providing complete engineering, procurement, construction, and start-up services. In addition, Raytheon will provide proprietary ethlybenzene (Ebmax(R)) and styrene monomer technologies it jointly developed and licenses with Mobil and Fina, respectively.

"Our strategy in the very competitive petroleum and chemicals market is to focus on those opportunities where we can offer our leading-edge process technologies packaged with our full spectrum of engineering and construction capabilities," said Wiesel. "These two awards from BASF are a perfect example of that strategy in action."

Raytheon began preliminary engineering work on the two projects in October 1999. The Ludwigshafen project is scheduled to be completed in the first quarter of 2002. The Antwerp project is scheduled to be completed in the third quarter of 2001. RE&C will perform the work out of its offices in The Hague, The Netherlands.

Ethylbenzene is used as feed stock for the production of styrene monomer. Styrene monomer, in turn, is the base product for polymers, such as polystyrene and ABS, that are used in consumer and industrial products.

For the two projects, RE&C will license its Ebmax(R) technology, which is based on a proprietary catalyst from Mobil for alkylation and transalkylation. The technology enables the cost efficient production of ethylbenzene by minimizing capital investment costs and power consumption. At Ludwigshafen, RE&C will also license its Fina/Badger styrene monomer process technology. Employed in a new reactor section coupled with existing finishing facilities, the technology will enable the production of a dehydrogenated mixture containing styrene monomer.

The new facilities at Ludwigshafen will replace a complex that is more than 30 years old. At Antwerp, the new ethylbenzene unit will feed into an existing distillation section that will be modified to increase its capacity.

With sales in excess of 54 billion deutschemarks, BASF is one of the leading international companies in the chemical industry. The products range from natural gas, oil and basic chemical products through innovative intermediates to specialties, high value-added chemicals, crop protection products and pharmaceuticals.

Raytheon Engineers & Constructors, based in Cambridge, Mass., is a major engineering and construction firm serving customers worldwide. It is one of the business segments of Raytheon Company, 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 serves customers in more than 80 countries.