CANBERRA - 20 June 2007. Raytheon Australia has welcomed the announcement by the Federal Government, that Navantia’s ‘Existing’ design has been selected as the ship design for the Navy’s future Air Warfare Destroyers.

Ron Fisher, Managing Director Raytheon Australia said, ‘Raytheon Australia welcomes the design decision and commencement of the next phase of development of Australia’s Air Warfare Destroyers.’

As the Air Warfare Destroyer Mission Systems Integrator, Raytheon Australia will complete the Australianisation of the combat system around the Aegis core. Specifically Raytheon will integrate the non-
Aegis elements of the combat system and conduct combat system trade studies; develop the design of the complete AWD combat system; develop complete ship and Integrated Support Systems with the Platform System Designer and Shipbuilder; and develop project management and systems engineering structures and deliver mission systems integration.

‘As a member of the Air Warfare Destroyer Alliance, along with the Defence Materiel Organisation and ASC, Raytheon Australia looks forward to working with Navantia in what will be one of the advanced shipbuilding projects in Australia’s history.’

‘I also take this opportunity to congratulate the Australian Government on progressing this nation building project. The business of defence is vitally important and this project will have a tremendous impact on the growth of skills and jobs. The Raytheon AWD team is expected to total around 230 employees. This includes 140 jobs in Adelaide and the remainder in other locations as part of the company's important mission systems integration role. Our defence industry exists to serve the Australian Defence Force and we look forward to delivering the Royal Australian Navy a capability in which all Australians can be proud.’ Ron Fisher said.

Mr Dan Smith, Raytheon Company Vice President, President of Raytheon Integrated Defense Systems and member of the Air Warfare Destroyer Principals’ Council today noted the significance of this announcement as a key milestone in advancing this important program.

He added, ‘Together with the Defence Materiel Organisation, ASC and Navantia, Raytheon is proud to be a partner with this team in what will be the most technologically complex shipbuilding project in Australia’s history.’

Raytheon Australia will continue to partner with SMEs and other organisations within Australian Industry over the life of this project. Further information about industry involvement can be found at www.ausawd.com and www.raytheon.com.au

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With facilities located across the country, Raytheon Australia is a highly capable prime contractor with an engineering and technical workforce of over 1200 backed by world-class management and quality systems. This local presence is bolstered by strong relationships with small and medium sized enterprises and access to the global resources of Raytheon Company.

Raytheon Australia is a wholly owned subsidiary of Raytheon Company (NYSE: RTN). Raytheon Company, with 2006 sales of US$20.3 billion, is a technology leader specialising in defence, homeland security and other government markets throughout the world. With a history of innovation spanning 85 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.