Raytheon Awarded $13.3 Million to Develop Tank Extended Range Munition.

LEXINGTON, Mass.--(BUSINESS WIRE)--Aug. 30, 1999--

Raytheon Company (NYSE:RTNA, RTNB) has received a $13.3 million contract for Phase 2 development of the Tank Extended Range Munition (TERM) for the Army's M1A2 Abrams Tank.

TERM encompasses a multi-mode seeker and a chemical energy warhead, integrated in a 120mm-tank cartridge. It is designed to destroy targets in all weather and through sophisticated countermeasures far beyond the range of today's tank ammunition. TERM represents a major effort to make tank ammunition "smart" to increase its effectiveness at longer ranges.

"TERM is Raytheon Systems Company's first entry into the multi-mode seeker business," said Jerry Lockard, vice president responsible for the Missile Systems business unit, Tucson, Ariz. "It will lead the way for the next generation of projectile and missile seekers."

The Army's Tank Automotive and Armaments Command, Armament Research and Development Engineering Center, Picatinny Arsenal, N.J., awarded two Phase 2 contracts for TERM among three competitors. Alliant and Raytheon were selected.

TERM Phase 2 will reduce technical risk and prepare the program to enter program definition risk reduction in fiscal year 2002. In Phase 2A, Raytheon will design and fabricate multi-mode seeker components, develop software and fusion algorithms and integrate hardware and software to conduct a captive flight test in July 2000. Concurrently, Raytheon will conduct firing tests of the PRIMEX munition payload body to validate design robustness. In Phase 2B, Raytheon will conduct additional warhead testing and integrate a tactical TERM.

The majority of work under this contract will be performed at Raytheon facilities in Tucson. PRIMEX will do its subcontract work in Florida and Pennsylvania.

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.