Raytheon Awarded $44.8 Million Production Contract for TOW Improved Target Acquisition System.

LEXINGTON, Mass.--(BUSINESS WIRE)--Aug. 3, 1999--

Raytheon Company (NYSE: RTNA, RTNB) has been awarded a $44.8 million U.S. Army full rate production contract for the Tube-launched, Optically tracked, Wire-guided (TOW) Improved Target Acquisition System (ITAS).

The Army plan also calls for a subsequent production contract to be awarded later this year, bringing the cumulative value of the contracts to $237 million over a period of five years.

Under terms of the contract, deliveries are scheduled to begin in late 2001. Raytheon is currently in low rate initial production (LRIP) for ITAS, and has delivered approximately 30 of 112 systems. The LRIP 1 and 2 contracts total $72 million, with deliveries scheduled to be completed in mid-2000.

ITAS upgrades the existing launcher for the High Mobility Multi-purpose Wheeled Vehicle and ground mounted TOW. The mission of ITAS remains the same as TOW -- defeat enemy armored vehicles.

A second generation forward looking infrared device using Standard Advanced Dewar Assembly technology, eyesafe laser rangefinder, and gunner aided target tracker, increases recognition range performance by a factor of two and probability of hit over the existing TOW, which is one of the world's most widely used anti-armor missile. These and many other improvements ensure crew survivability through increased standoff range and improved performance in the battlefield environment.

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 services more than 80 countries around the world.

Note to Editors: The contract was awarded by the U.S. Army Aviation & Missile Command, Redstone Arsenal, Ala., on July 2, 1999.