Raytheon Says Court Action Was Expected and Has No Financial Bearing on the Sale of Engineering and Construction Business

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Raytheon Says Court Action Was Expected and Has No Financial Bearing on the Sale of Engineering and Construction Business

         Company clarifies implications of court ruling on rejection
                         of stock purchase agreement

    LEXINGTON, Mass., Sept. 7 /PRNewswire/ -- Raytheon Company (NYSE: RTN)
said today that the ruling by the Bankruptcy Court in Reno will have no affect
on Raytheon's ability to pursue its claims against Washington Group
International (WGI).
    "In bankruptcy, a debtor has the right to reject or assume executory
contracts -- those that have remaining obligations -- such as the stock
purchase agreement.  To no one's surprise, WGI elected to reject this
contract," said Neal E. Minahan, Raytheon's senior vice president and general
counsel. Minahan said that WGI's rejection of the stock purchase agreement
constitutes a breach of the contract. Raytheon has filed a proof of claim to
recover more than $900 million in damages against WGI.  WGI's rejection of the
stock purchase agreement has no affect on Raytheon's claims.
    What is important is that yesterday's ruling has no financial impact
whatsoever on Raytheon. It does not represent a rescission of the sale of its
former engineering and construction business, Minahan added.
    The next major event in the bankruptcy proceeding is the hearings to
determine whether WGI's most recent plan of reorganization can be confirmed.
These hearings are currently scheduled to begin September 13 and continue into
October. Raytheon filed its objections to the plan yesterday.  Those papers
were filed under seal because the papers refer to certain documents that WGI
has designated as "confidential." Raytheon is attempting to have these
documents disclosed to the public so that the full story can be told.
    With headquarters in Lexington, Mass., Raytheon Company is a global
technology leader in defense, government and commercial electronics, and
business and special mission aircraft.

     Contact:
     David Polk (News Media)
     781.860.2386

     Timothy Oliver (Investor Relations)
     781.860.2167

SOURCE Raytheon Company

http://www.raytheon.com
CONTACT:
David Polk, +1-781-860-2386, or Timothy
Oliver, +1-781-860-2167 both of Raytheon Company