LEXINGTON, Mass., Aug. 23 /PRNewswire/ -- A series of failures and errors
in judgment by Washington Group International (WGI) management put WGI into
bankruptcy according to papers filed today in U.S. Bankruptcy Court for the
District of Nevada by the Raytheon Company (NYSE: RTN).  According to the
filing, Raytheon has evidence that will demonstrate that WGI's financial
setbacks were not brought on by the transactions with Raytheon, but instead
resulted from WGI management's inability to manage a large and complex
acquisition that more than doubled its size, combined with its failure to
generate new business, control costs and effectively manage its financial
affairs.  This evidence includes WGI's own documents and statements.
    Raytheon's filing is in response to the lawsuit filed by WGI on August 3,
2001 alleging that the sale of Raytheon's engineering and construction
business to Washington Group in 2000 constituted a fraudulent transfer.
    "We think that Washington Group's lawsuit is nothing more than a public
relations ploy to divert attention from the real reasons that they are again
in bankruptcy and to avoid their obligations to Raytheon," said Neal Minahan,
senior vice president and general counsel of Raytheon.  "The subsidiaries
Raytheon sold to Washington Group were solvent, and Washington Group was not
rendered insolvent by this transaction. Contrary to the defamatory public
statements made by WGI and its officers, Raytheon's actions were legal and
appropriate at every juncture of this transaction."
    WGI, its officers, directors and advisers, which included Credit Suisse
First Boston, Arthur Anderson, Bain & Company, and Batchelder & Company,
engaged in an extensive due diligence process that extended from September
1999 to July 2000.  Raytheon will demonstrate that, as a result of this
process, WGI, its officers, directors and advisers completely understood the
financial statements and financial condition of the engineering and
construction business it was purchasing, and indeed renegotiated more
favorable terms in the acquisition agreement as a result of that awareness.
    "We don't think there was a problem with this transaction," Minahan said.
"If there was a problem, we think Washington Group should be pursuing claims
against its directors and officers, financial and accounting advisers, and
lenders who oversaw Washington Group's due diligence and structured and
arranged the financing for Washington Group in connection with the sale."
    On a related point, Raytheon also announced that on August 21st in a court
hearing in the bankruptcy proceedings, WGI has stipulated that Raytheon would
be entitled to vote in the bankruptcy proceeding as an unsecured creditor, and
its vote would be in the amount requested by Raytheon.
    "We are also pleased, notwithstanding Washington Group's prior statements
that Raytheon was not a net creditor and would never vote in the bankruptcy
proceeding, that Raytheon will be entitled to a significant vote," said
Minahan.
    With headquarters in Lexington, Mass., Raytheon Company is a global
technology leader in defense, government and commercial electronics, and
business and special mission aircraft.

    Forward-looking statements
    This news release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act concerning the company's
financial results, future plans, objectives and expected performance.
Specifically, statements in this release that are not historical facts,
including statements accompanied by words such as "believe," "expect,"
"anticipate," "estimate," "intend," or "plan" are intended to identify
forward-looking statements and convey the uncertainty of future events or
outcomes.  The company cautions readers that any such forward-looking
statements are based on assumptions that the company believes are reasonable,
but are subject to a wide range of risks, and actual results may differ
materially.  Important factors that could cause actual results to differ
include, but are not limited to: the ultimate resolution of contingencies and
legal matters; the ultimate resolution of WGI's bankruptcy proceedings and
related matters; differences in anticipated and actual program results; and
risks inherent with large long-term fixed price contracts, particularly the
ability to contain cost growth. Further information regarding the factors that
could cause actual results to differ materially from projected results can be
found in the company's most recent filings with the Securities and Exchange
Commission, including Raytheon's Form 10-K for the year ended December 31,
2000 and Form 10-Q for the quarter ended July 1, 2001.

    Contact:
    David Polk or Amy Hosmer (News Media)
    781-860-2386

    Timothy Oliver (Investor Relations)
    781-860-2167

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