RAYTHEON TEAMS WITH LOCKHEED MARTIN FOR FAA AIR TRAFFIC CONTROL MODERNIZATION.

Raytheon Company (NYSE:RTN) will join Lockheed Martin's national team to design and develop the next-generation En Route Automation Modernization (ERAM) program for the Federal Aviation Administration (FAA). Raytheon will perform as a major subcontractor to Lockheed Martin, along with other air traffic management (ATM) industry leaders such as Computer Sciences Corporation, Boeing, Northrop Grumman and Harris Corp.

Raytheon brings to the ERAM team extensive en route air traffic management system experience in the critical areas of flight and surveillance data processing. This experience has been gained through Raytheon's 50-year legacy of ATM system development and most notably its partnerships with the Deutsche Flugsicherung GmbH (DFS) in Germany, NAV CANADA in Canada and the FAA in the US. Raytheon has a long history of developing and introducing advanced open software architectures to our ATM partners that provide efficient and cost effective long-term system growth and evolution. In addition, Raytheon's ATM systems engineering experience, from the current en route back-up channel, or Direct Access Radar Channel (DARC), to the next-generation terminal automation system, Standard Terminal Automation Replacement System (STARS), will enable Raytheon to leverage proven technology and engineering processes that are directly applicable to ERAM.

"Raytheon is pleased to perform as a major subcontractor to Lockheed Martin for ERAM and we are confident that the FAA will be getting a world class team to provide a solution for modernization of the world's most complex en route ATM system," said Steve Teel, vice president of Business Development for Raytheon's Command, Control, Communications and Information Systems. In addition, Lockheed Martin will join the Raytheon Standard Terminal Automation Replacement System (STARS) team. As a subcontractor to Raytheon, Lockheed Martin will apply its expertise in high-density TRACON operations to assist in the transition of Common ARTS to STARS at very large TRACON facilities.

Bob Eckel, vice president of Raytheon Air Traffic Management Systems, said, "We believe that this partnership with Lockheed Martin will leverage the best capabilities of both companies to offer the FAA effective solutions for ERAM and STARS bridging the terminal and en route airspace. Lockheed Martin's addition to the STARS team will ensure timely and safe transition of the large high density TRACON facilities from the existing automation system to STARS." With headquarters in Lexington, Mass., Raytheon Company is a global technology leader in defense, government and commercial electronics, and business and special mission aircraft.