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RAYTHEON FILES COUNTERCLAIM AGAINST HUGHES AIRCRAFT

       RAYTHEON FILES COUNTERCLAIM AGAINST HUGHES AIRCRAFT
    LEXINGTON, Mass., Nov. 21 /PRNewswire/ -- Raytheon Company (NYSE: RTN) has filed an answer and counterclaim to a lawsuit brought against Raytheon by Hughes Aircraft in which Hughes is attempting to recover damages allegedly incurred on the SLQ-32 shipboard electronic countermeasures program for the U.S. Navy.
    Raytheon's counterclaim states that Hughes Aircraft bought its way into its role as a second source supplier to the Navy for SLQ-32 equipment by agreeing to charge only one dollar for the effort necessary to become a qualified supplier.  The Navy selected Hughes as a directed subcontractor on the basis of Hughes' proposal.
    Subsequently, Raytheon said, Hughes has consistently failed to honor its obligations under the one dollar contract and has attempted to shift the blame for its own failures to Raytheon.
    In effect, Raytheon said, by distorting the record, Hughes is now hoping to recover from Raytheon and the U.S. Navy the costs of performance which it had agreed to absorb under its one dollar contract.
    Raytheon further stated that Hughes' conduct, from the outset, was designed not only to mislead the Navy regarding Hughes' own intentions, but also to disparage Raytheon's contract performance and manufacturing and engineering capabilities in an effort to secure a greater share of the SLQ-32 production contracts for itself.
    In media coverage precipitated by the Hughes' lawsuit, Hughes' allegations are quoted that Raytheon manipulated test data on SLQ-32 components, including Super Crystal Video receivers and YIG filters.  Raytheon said those allegations are totally false and are designed only to disparage its reputation and divert attention from Hughes' own performance shortcomings under its contract.
    Raytheon has delivered 398 SLQ-32 systems to the U.S. Navy since 1978, all of which fully met contractual requirements for quality, performance and reliability.  In head-to-head competition with Hughes on the SLQ-32 program since 1989, Raytheon has won 32 of 46 units awarded, or 64 percent of the total.
    Raytheon is a diversified, international company active in electronics, aviation, appliances, industry and environmental services, publishing and construction.  It is composed of 8 divisions and 12 major operating subsidiaries with more than 80 plants and laboratories in 26 states.  Major overseas subsidiaries and affiliates are located in Canada, the United Kingdom, The Netherlands, Germany, Switzerland and Japan.
    -0-                        11/21/91
    /CONTACT: Pat Coulter of Raytheon, 617-860-2173/
    (RTN) CO:  Raytheon Company ST:  Massachusetts IN:  ARO SU: KM -- NE011 -- 6034 11/21/91 16:01 EST
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Publication:PR Newswire
Date:Nov 21, 1991
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