Raytheon Selected to Provide U.S. Navy Base Operations Support in Guam.

VIENNA, Va.--(BUSINESS WIRE)--Nov. 18, 1999--

Raytheon Company (NYSE:RTNA)(NYSE:RTNB) has been selected to provide base operations support for the U.S. Navy, Naval Facilities Engineering Command, Pacific Division, in Guam. The value of the expected contract will be in excess of $300 million.

Under terms of the anticipated contract, which will have an eight-month base period followed by seven one-year options, Raytheon will provide base operations support services, including administration; facilities engineering and maintenance; utilities operation and maintenance; supply and transportation; waterfront and harbor operations; ordnance handling and storage; morale, welfare and recreation services; housing; food and family services; and surge support for storms and military contingencies. Work is scheduled to begin February 2000.

"The Navy s decision recognizes our company as a leading provider of base operations support and expands our worldwide presence," said Phil LePore, a vice president of Raytheon and president of Training and Services. "We?re very pleased to have this opportunity to bring our resources and expertise to bear to ensure the success of this program, and we look forward to working with the U.S. Navy in meeting present and future challenges in Guam."

Raytheon was selected from among several contractors and joint venture company bidders to compete against the U.S. government's Most Efficient Organization (MEO) cost proposal on this A-76 conversion. Under the A-76 process, government organizations are allowed to bid on work subjected to competition by designing an MEO including an in-house cost estimate. The successful private-sector offeror for each solicitation competes against the MEO. The process of developing the MEO/in-house cost estimate happens during the same period as the private-sector solicitations. Once the successful bidder is selected as a result of a cost-comparison decision, conversion to either an MEO or a contract is made. The Office of Management and Budget's A-76 guidelines are designed to encourage competition and provide a level playing field between public and private offerors.

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.