Raytheon Signs UK ASTOR Contract Valued at 800 Million Pound Sterling --US $1.3 billion--.

LONDON--(BUSINESS WIRE)--Dec. 17, 1999--

Raytheon Systems Limited, the UK subsidiary of Raytheon Company (NYSE:RTNA, RTNB), signed a contract today for the UK Ministry of Defence's Airborne Stand Off Radar (ASTOR) program in a ceremony at the MoD's Defence Procurement Agency facility at Abbey Wood in Bristol.

The contract signing follows nearly six months of detailed negotiations since the announcement in June that Raytheon had been selected as the preferred bidder for this (pound)800 million (US $1.3 billion) program.

ASTOR is a radar surveillance system that provides day/night and all-weather imagery of the ground over a large area. The imagery can be analysed on board the aircraft and passed in near real-time to ground stations and other military systems.

Sir Robert Walmsley, chief of Defence Procurement, said, "The right information delivered to the right place at the right time is crucial to the success of any military task. ASTOR will hugely improve our ability to know the situation on the ground."

Peter McKee, managing director of Raytheon Systems Limited, said, "Raytheon has worked hard to provide the best possible solution for the MoD's requirement. This major defence procurement demonstrates all the elements of the government's Smart Procurement methodology.

"In order to produce the best technological and best value approach, we have drawn not only on Raytheon's own high technology capabilities from the UK and U.S. but also brought in other key UK companies as part of our team. This contract will bring great benefits to UK industry as a result of the transfer of radar, communications and systems integration technologies from the U.S."

Raytheon is a leading provider of ground-to-air and air-to-air surveillance systems. The company's ASTOR solution combines proven radar technology with a defined upgrade path, the best aircraft in the Bombardier Aerospace Global Express and the ground station expertise of Motorola to provide the British Armed Forces with the most technologically advanced system in the world.

Approximately 2,500 jobs will be created or sustained in the UK under the Raytheon ASTOR program, with a potential for an additional 4,000 jobs created or sustained as a result of potential export opportunities. Approximately 100 companies throughout the UK, and particularly in Northern Ireland, Scotland and Wales, will participate in the program.

Following its ASTOR selection, Raytheon immediately started to market the system worldwide in order to bring maximum benefits to UK industry and the UK taxpayer. Some key potential overseas markets have already been identified and the system was demonstrated recently at a major exhibition in Dubai.

Raytheon Systems Limited is the UK-based subsidiary of Raytheon Company. With some 2,000 employees working out of nine facilities, Raytheon Systems Limited services both defense and commercial markets and is prime bidder for a number of major Ministry of Defence programs such as BVRAAM (Beyond Visual Range Air-to-Air Missile) and SIFF (Successor Identification Friend or Foe). Raytheon also participates as a team player in bids for other programs such as the Royal Navy's Future Carrier (CVF). Raytheon Systems Limited designs, develops and manufactures a wide range of advanced electronic products and systems including airport radar, Identification Friend or Foe systems, anti-jam Global Navigation Systems and marine navigation equipment. It also undertakes aircraft servicing, repair and modifications and develops simulation and training products for air traffic control.

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 serves customers in more than 80 countries.