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Raytheon awarded German Very Advanced Air Traffic Control Automation System (VATCAS) Contract Valued in Excess of $20 Million

    PARIS, June 22 /PRNewswire/ -- Raytheon Company (NYSE: RTN) has been
awarded the Very Advanced Air Traffic Control Automation System (VATCAS)
contract by Deutsche Flugsicherung GmbH (DFS) of Germany.  The contract,
valued in excess of $20 million, will be developed over 20 months as the
cornerstone of DFS' strategic program for transition to very advanced air
traffic management.  VATCAS provides the system architecture and strategic
platform to ensure interoperability and future expansion under DFS' Very
Advanced Flight Data Processing Operational Requirements Implementation
(VAFORIT) program.
    The contract was signed today by Dieter Kaden, chief executive officer of
DFS, and Frank Marchilena, president of Raytheon's Command, Control,
Communication and Information Systems business area.  "DFS is a key customer
for Raytheon.  The VATCAS program reaffirms Raytheon's long standing
commitment and partnership with DFS," Marchilena said.   Kaden said, "This
contract underlines DFS' commitment to the common goal to further improve our
relationship as it has been laid down in the Memorandum of Cooperation signed
late last year. DFS is confident to have a competent partner for the VATCAS
realization at their side."
    VATCAS and DFS' very advanced flight data processing system and displays
make up the VAFORIT program. Designed to increase capacity and enhance safety,
VAFORIT will allow DFS to manage growing air traffic levels.  The system will
provide the transition of Germany's airspace from the advanced level of
capability as defined by the European Civil Aviation Conference to the very
advanced level. Benefits of the new system include highly accurate aircraft
position information, comprehensive situational awareness and a strip-less
environment.
    The VATCAS award continues a long successful history of cooperation
between Raytheon and DFS.  VATCAS builds on the capability established under
the P1 Air Traffic Control Automation System (ATCAS).  Operating flawlessly
since it was put into operation in Langen in 1999, the P1 ATCAS system will
continue to be enhanced during the parallel development of VATCAS.
    "Raytheon is pleased to pursue this opportunity with DFS and play a key
role in the modernization of Germany's air traffic management system," said
Dave Mackenzie, Raytheon's manager of DFS programs.
    A leader in multi-site program development, Raytheon plans to perform the
work under the program at the company's Marlborough, Mass., and Fullerton,
Calif., facilities.  The development team will also include DFS' software
development team in Langen, Germany, and Terma Elektronik AS in Copenhagen,
Denmark.
    With headquarters in Lexington, Mass., Raytheon Company (NYSE: RTN) is a
global technology leader in defense, government and commercial electronics,
and business and special mission aircraft.

     Contact:
     Blanche Necessary
     202-314-3780



SOURCE Raytheon Company




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    CONTACT:
    Blanche Necessary of Raytheon Company,
    202-314-3780