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Raytheon Awarded Two Contracts

Maritime Activity Reports, Inc.

December 5, 2005

Raytheon Company has been awarded two sole source contracts by the U.S. Navy totaling $15.7 million for AEGIS equipment support. A $10.2 million performance based logistics contract renews Raytheon Integrated Defense System's (IDS) direct responsibility for administering AEGIS technical support for spares and repairs requirements of U.S. Navy and Foreign Military Sales customers. A $5.5 million contract calls for upgrading transmitter equipment in the AEGIS Weapon System. The AEGIS program is served by Raytheon's IDS Surveillance & Sensor Systems business area. Raytheon recently commemorated a 25-year milestone of continuous AEGIS equipment production. "Logistics contracts are our vehicles for supporting IDS customers throughout the product life cycle," says Dan Martin, vice president, Surveillance & Sensors Systems. "A critical role we play in supporting and protecting the fleet is to understand and anticipate the Navy's continually changing needs and to help them control life-cycle costs while delivering on the warfighters' needs." The $5.5 million transmitter upgrade contract calls for the manufacture, test and delivery of solid state amplifiers for use in RF (radio frequency) monitor cabinets in SPY-1 radar transmitters. Whole life services and support is central to maintaining and upgrading AEGIS equipment on board the U.S. Navy's fleet, which includes Ticonderoga class cruisers and Arleigh Burke class destroyers. Based in Tewksbury, Mass., Integrated Defense Systems is Raytheon's leader in Joint Battlespace Integration. With a strong international and domestic customer base, including the U.S. Missile Defense Agency and the U.S. armed forces, Integrated Defense Systems provides a wide spectrum of integrated air and missile defense and naval and maritime warfighting solutions.

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