Raytheon, U.S. Navy Sign $259.9m Contract

Wednesday, May 20, 2009

Raytheon Company (NYSE:RTN) is being awarded a $259.9m U.S. Navy contract to overhaul and upgrade 57 Phalanx Close-In Weapon Systems and to provide ancillary equipment, spares, as well as additional technical support. The agreement calls for 40 sea-based Phalanx systems and 17 Centurion Land-Based Phalanx Weapon Systems.

Phalanx is a rapid-fire, computer-controlled radar and 20 mm gun system that automatically acquires, tracks, and destroys enemy threats that have penetrated all other ship defense systems. More than 890 systems have been built and deployed in the navies of 25 nations. Centurion LPWS defends ground forces and high value sites against rocket, artillery and mortar attacks. Twenty-two have been delivered to the U.S. Army and 10 to the United Kingdom's Ministry of Defence.

"At sea, Phalanx Block 1B provides a reliable day and night passive search and track capability in near-shore, littoral environments," said Todd Callahan, Raytheon's Close-In Defense Solutions program director. "The land-based system has proved to be very effective since it was first delivered in mid-2005, defeating more than 110 launches against high value Multi-National Corps-Iraq assets."

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