H&R Company-led team wins concept definition contract for Aerostat Development Program.

WASHINGTON--(BUSINESS WIRE)--Oct. 17, 1996--The H&R Co., a joint venture between Hughes Aircraft Co. and Raytheon Co., was recently awarded a $1 million contract by the U.S. Army's Space and Strategic Defense Command (SSDC) for the concept definition phase of the Aerostat Development Program, a cruise missile defense, elevated sensor system.

Joining Hughes and Raytheon on the H&R Co. Aerostat team are TCOM LP of Columbia, Md., and TRW Systems Integration Group.

"I truly believe that the Aerostat Program is a critical element of the Department of Defense's Cruise Missile Defense (CMD) initiative," Don Infante, Hughes Defense Systems vice president and manager, said. "This system will provide the Army and Navy with a sensor capability that greatly enhances the effectiveness of their weapons against low flying cruise missiles."

Under the terms of the "Segment 1" concept definition contract, the H&R Co. Aerostat Team will perform trade studies and develop preliminary designs for a family of aerostat-based sensor systems. The four-month "Segment 1" effort will culminate in the submission of a proposal for the "Segment 2" program to design the "short range" aerostat system. Segment 2 contract award is expected in the July 1997 time frame.

"Our challenge in the Aerostat Development Program is twofold: first to define and validate an affordable, cost-effective system architecture capable of enhancing airspace awareness and engaging land attack cruise missiles beyond the horizon," said Steve Stanvick, vice president and manager of Raytheon Electronic Systems' missile and air defense systems operations.

"Then we must incorporate that architecture into the overall Cruise Missile Defense structure and seamlessly integrate it into the existing BMC4I system."

"We feel confident in our ability to accomplish those goals efficiently and effectively," Infante added. "By utilizing time-proven Integrated Product Development (IPD) processes, which we are employing on MEADS, the H&R Co. is performing the trades and analyses necessary to balance performance, cost and development risk leading to our `system-of-systems' approach."

Hughes Aircraft is a world leader in the development and production of command/control systems, missile systems, and radars for use in land, sea, air, theater and strategic defense applications. With headquarters in Arlington, Va., Hughes Aircraft is a unit of Hughes Electronics Corp.

With more than 80,000 employees and annual sales near $15 billion, Hughes Electronics designs and manufactures advanced electronics systems for automotive, defense, and telecommunications and space applications, and direct broadcast television. The earnings of Hughes Electronics are used to calculate earnings per share attributable to GMH (NYSE symbol) common stock.

Raytheon is one of the world's leading suppliers of surface-to-air missile systems and ground-based radars. Raytheon's HAWK medium-range air defense missile system is in use in 21 countries around the world and Raytheon's world-class Patriot surface-to-air missile system is currently the centerpiece air defense system in the United States and six allied nations.

With headquarters in Lexington, Mass., Raytheon is a $12 billion international, high technology company which operates in these businesses: commercial and defense electronics, engineering and construction, aircraft and major appliances (NYSE:RTN).

CONTACT: Hughes Aircraft Co., El Segundo

Felicia Campbell, 310/616-4216

310/616-3402 (fax)

[e-mail]

310/298-6090 (pager)

or

Raytheon Co., Lexington

Public Relations, 617/860-2410

617/860-2520 (fax)

http://www.raytheon.com