Raytheon Canada awarded $180 million Phalanx weapon system overhaul and conversion contract



    CALGARY, June 23 /CNW/ - Raytheon Company (NYSE:   RTN) has been awarded a
$180 million contract from the Canadian Navy to conduct 30 sets of overhauls
and convert 21 Phalanx close-in weapon systems. The contract calls for
Raytheon to convert the Phalanx Block 1B Baseline 0 to a Baseline 1
configuration and to provide repair services and spares, as well as additional
engineering and technical support. The work will be performed at the Raytheon
Canada Limited Support Services Division Naval Support Centre in Calgary,
Alberta.
    "This is the largest contract to date for our Canadian operations in
Calgary," said Rick Yuse, president of Raytheon Technical Services Company LLC
(RTSC). "It affirms our expertise in maintaining and upgrading military
systems for our allies, and it further strengthens our already strong
relationship with the Canadian government and its armed forces."
    Phalanx is a rapid-fire, computer-controlled radar and 20 mm Gatling-gun
system that automatically acquires, tracks and destroys enemy threats that
have penetrated all other ship defense systems. The Phalanx Block 1B surface
mode provides both a radar and a thermal imager for target identification and
rapid tactical actions in the cluttered near-shore environment. More than 850
Phalanx systems have been built and deployed in the navies of 24 nations.
    Raytheon has provided total life-cycle support for the Phalanx to the
Department of National Defence since 1994. "This contract extends our work on
the system to 2017," said Ron Guidinger, vice president and general manager of
Raytheon Canada Support Services. "The decision by the Government of Canada to
award this contract to Raytheon underscores its confidence in our
organization, our technology and our people."
    The Phalanx project is a Government of Canada defence procurement which
is subject to Canada's Industrial and Regional Benefits (IRB) policy. The IRB
policy requires Raytheon Canada, as the prime contractor, to undertake
high-quality business activities in Canada equal to 100% of the contract
value.

    Raytheon Canada Limited, a wholly owned subsidiary of Raytheon Company
(NYSE:  RTN), has more than 1,500 employees throughout Canada who provide
advanced-technology products and services to the aerospace and defense
sectors. The Support Services Division is part of Raytheon Technical Services
Company's Customized Engineering and Depot Support business unit.
    Raytheon Company, with 2008 sales of $23.2 billion, is a technology and
innovation leader specializing in defence, homeland security and other
government markets throughout the world. With a history of innovation spanning
87 years, Raytheon provides state-of-the-art electronics, mission systems
integration and other capabilities in the areas of sensing; effects; and
command, control, communications and intelligence systems, as well as a broad
range of mission support services. With headquarters in Waltham, Mass.,
Raytheon employs 73,000 people worldwide.

    Note to Editors:

    The Phalanx close-in weapon system, developed by Raytheon Missile
Systems, protects ships and their crews against an increased number of
threats, including standard and guided artillery, helicopters, floating mines
and a variety of shore-launched, anti-ship missiles. It is especially
effective against swarming attacks by small, fast gunboats. Block 1B Baseline
1 improves the weapon's performance against high-velocity maneuvering
anti-ship missiles.





For further information:

For further information: Val MacDonald, (403) 295-6694,
Val.MacDonald@raytheon.com

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