Raytheon offers New Missile for Eurofighter That Supports Joint U.K. and U.S. Development of a Next Generation Air-to-Air Missile.

LONDON--(BUSINESS WIRE)--Sept. 15, 1999--

AMRAAM and BVRAAM programmes to merge with Joint U.K./U.S.

Leadership and control.

Raytheon Systems Limited, a unit of Raytheon Company (NYSE:RTNA, RTNB) announced today it will offer the Extended Range Air-to-Air Missile Plus (ERAAMplus) as part of an unprecedented cooperative programme to develop the next generation air-to-air missile, known as BVRAAM (Beyond Visual Range Air-to-Air Missile). ERAAMplus, a hitherto unseen missile variant, incorporates the latest and best technology available from the AMRAAM (Advanced Medium Range Air-to-Air Missile) Pre-Planned Product Improvement (P3I) Phase 3 programme currently being developed by Raytheon in the U.S. If the UK MoD select the Raytheon approach for their BVRAAM requirement, the two governments will form an equal partnership to develop and produce a new missile that satisfies both U.K. and U.S. requirements.

"This truly is a first for Raytheon, and the U.S. and U.K. governments - the cooperative programme is a watershed development in the aerospace and defence industry," said Daniel P. Burnham, Raytheon Company chairman and chief executive officer. "The BVRAAM and AMRAAM P3I programme provides a long-term partnership that will allow the U.S. and U.K. to jointly develop, and produce, a world-class air-to-air missile. This new missile system will equip current and future generation fighters to include the EuroFighter, JSF (Joint Strike Fighter) and F-22 (The USAF's next generation fighter) in order to continually maintain air supremacy and increase interoperability. This programme will be the catalyst and benchmark for how all international programmes should be created in the future," Burnham said.

Peter McKee, managing director, Raytheon Systems Limited added, "The cooperative programme will strengthen the U.K. missile capability and provide access to the U.S. market for European companies. I'm pleased that Raytheon is leading the way by facilitating this alliance which will provide joint management, joint control and future development. The lessons of coalition warfare clearly reinforce that this approach is long overdue and that we must share resources and make smarter procurements rather than duplicating requirements that cannot inter-operate when called into action."

McKee noted that Raytheon's BVRAAM approach saves at least 450 million British Pound Sterling and could create or sustain over 3,000 jobs in the U.K. with exports. AMRAAM is the world's most effective air-to-air missile; this programme will build on its success and be shared worldwide.

The cornerstone of this partnership is the process that allows the U.S. and U.K. to jointly develop the best air-to-air missile, which will provide opportunities for future cooperative developments to meet jointly determined future requirements. This approach allows both countries and their allies to realise substantial cost-savings, which is especially critical for the U.K. government's new procurement process. The sustained interoperability, already embodied by 23 nations participating in what is now an international AMRAAM programme, has been underscored during recent NATO and coalition operations in the Balkans.

The cooperative programme incorporates a pioneering trans-Atlantic and European industrial plan which features high U.K. workshare, realising a partnership for U.K. industry in the development, manufacture and support of U.K., U.S. and export missiles. The programme will provide the U.K. initially with 62 percent of development, production and jobs for the MoD BVRAAM procurement and give the U.K. 50 percent of the larger U.S. air-to-air market. Furthermore, U.K. industry will participate in the production of every missile sold around the world.

McKee went on to say: "In that same vein, we have initiated new activity within the EuroFighter Associate Nations to assist and define their future participation in this groundbreaking programme."

Raytheon's solutions for BVRAAM reflect the U.K. MoD's desire for smart procurement, identified in the MoD's Strategic Defence Review and the government's "Good Practice Guidelines for Public Sector Procurement."

Raytheon Systems Limited is the U.K.-based subsidiary of Raytheon Company. With over 2,000 employees working out of eight facilities, Raytheon Systems Limited services both defence and commercial markets and is prime bidder for a number of major Ministry of Defence programmes. Raytheon Systems Limited designs, develops and manufactures a wide range of advanced electronic products and systems including airport radars, 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 Systems Limited has also partnered with Thomson-CSF in their pursuit of the U.K. MoD's Staff Target (Sea) 7068 for the Royal Navy's Future Aircraft Carrier (CVF).

Raytheon Company, based in Lexington, Mass., is a global technology leader providing products and services in the areas of commercial and defence 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.

Raytheon is leading a European team of missile experts to produce BVRAAM - the team is:

--Raytheon Systems Limited - Prime Contractor and Design Authority

--Shorts Missile Systems Ltd (Northern Ireland) - Missile Integration, Final Assembly & Test

--Raytheon Systems Limited - Electronic Systems Glenrothes (Scotland) - Sub-system Electronics

--Thomson-Thorn Missiles Electronics Ltd (England) - Lethality Section

--Diehl GmbH & Co. - Lethality Section

--ARC - Propulsion System

--Fokker Special Products - Ramjet Fin Actuation Sub-system

--Aerospatiale Missiles - Ramjet Propulsion System