Raytheon Receives $17.4 Million Air-Telephone Order; Announces Fastest Data Rate in the Air.

FT.WAYNE, Ind.--(BUSINESS WIRE)--Oct. 14, 1999--

Raytheon Company (NYSE: RTNA, RTNB) has received a $17.4 million order for 569 MagnaStar(R) Air-Telephone Systems from its marketing partner, Teledyne Controls, Los Angeles, Calif.

MagnaStar is a digital cellular telephone system designed for corporate aircraft, commercial regional jets and some military aircraft. The system offers its customers the fastest data rates in the air (9600 baud) and data hand-off capabilities that help them stay connected, in both voice and data communications modes. Operating exclusively over the Airfone(R) digital telephone network, MagnaStar transmits and receives airborne calls across the continental United States, without communication drops-offs.

"Our customers stay connected. While flying across the continental United States, they can access the Internet, download important files or receive e-mail at the rate of 12 pages per minute," said Ray Larkin, Raytheon Systems Company's Communication Systems Division marketing manager for MagnaStar.

Carried on Raytheon's Hawker and Beech Jet aircraft, in addition to many other high-end business jets, MagnaStar is available as a factory option for most new business jets. Raytheon Systems Company's Communication Systems Division Business Development director John Oglesby said, "There are 1,500 MagnaStar systems installed and active right now. As the market leader, MagnaStar is selling at an average rate of 40-plus systems per month, and demand is still high."

Teledyne Controls and its dealer network exclusively distribute MagnaStar products to the general aviation market and particularly to original equipment manufacturers, which account for more than 50 percent of MagnaStar's annual sales.

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.

Notes to Editors:

- Engineering and product support will be conducted at Raytheon's

Communication Systems Division headquarters, Ft. Wayne, Ind.

Production will occur at Raytheon's manufacturing center of

excellence in Largo, Fla.

- Raytheon developed and currently supplies radio components for

AirFone's GenStar system, which is carried aboard United, Delta,

USAir and Continental airplanes. Raytheon's radio components

provide airborne telecommunications for these commercial

airlines.

- MagnaStar was developed to bring advanced communication systems

to the corporate jet market. Since its first installation in

1994, product advancements such as a digital SATCOM interface, an

Analog Interface Unit, a Call Alerter Switch and a Mach-1 handset

have been introduced. 9600 bps modem capability is the latest in

a series of planned product improvements that anticipate customer

and market needs.