Raytheon Awarded U-2 Aircraft Field Support Contract With Potential Value of $250 Million.

LEXINGTON, Mass.--(BUSINESS WIRE)--July 26, 1999--

Raytheon Company (NYSE:RTNA)(NYSE:RTNB) has been awarded a U.S. Air Force initial $43.8 million contract by Warner Robins Air Logistics Center, Robins AFB, Ga., to provide Fiscal Year 2000 consolidated field support for all sensors, data links and ground systems related to the U-2 reconnaissance aircraft program. Over the next five years, this contract has a potential value of $250 million.

Specific services provided under the Contractor Field Service (CFS) program include pre-flight system checks, mission support during flight, and post-mission problem analysis. New system installations and upgrades will also be performed under this effort.

"Raytheon now becomes the government's single point of contact in providing contractor field support for the U-2's electronic systems, both airborne and ground," said Hugo Poza, vice president for Raytheon Systems Company's Strategic Systems Division, Falls Church, Va. "We look forward to working with the Air Force to generate additional efficiencies and cost savings over the next several years."

"We are pleased with the results of this competition," said John Adams, acting director for U-2 Management at Warner Robins. "Savings to the Air Force are significant, and we believe the direct warfighter support that the Raytheon team will provide will continue to be world class in every regard."

This program represents the successful evolution of an earlier CFS consolidation effort by the Air Force and Raytheon. Previously, there were separate support contracts for various subsystems used by the U-2 program; the CFS program will consolidate these individual efforts.

Raytheon's key team members include Lockheed Martin Astronautics, providing ground system elements; and Harris Corporation, supporting the U-2 aircraft's data links. CFS program management support will reside in Raytheon's Falls Church, Va., operation.

Raytheon Systems Company has supported the U-2 program for more than 30 years, providing logistics, operations, maintenance and training support for the aircraft's sensor systems and ground processing facilities. The company also produces the U-2's Advanced Synthetic Aperture Radar.

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.