Raytheon Canada Awarded $22.4 Million to Perform Repair and Overhaul Activities for Canadian Navy Radar Systems

CALGARY, Alberta, Nov. 29, 2007 -- The Canadian government has awarded a contract to Raytheon Canada Limited for the repair, overhaul, engineering and upgrade services for eight AN/SPS-49 (V) radar systems for the Canadian Navy.

The new contract extends Raytheon's support services to the Navy until 2013, with options to 2015, and is valued at about $22.4 million. The contract, signed this month between Raytheon Canada and Public Works and Government Services of Canada, provides total life-cycle support for Canada's AN/SPS-49 (V) radar systems. Under this new Omnibus II contract, Raytheon will provide fleet repair work, field service support, overhaul, upgrade, overhaul support material,integrated logistics support, and engineering services.

Work will be performed in Calgary, Alberta, at Raytheon Canada's Naval Systems Support facility, which has been in operation since 1995. This all-inclusive facility delivers total life-cycle support for the AN/SPS-49 (V) radar system through the application of Raytheon Canada's extensive technology and expertise. "We are excited to be extending Raytheon's support to the Canadian Navy," said Ron Guidinger, vice president and general manager of Raytheon Canada's site in Calgary. "Ensuring the continued effectiveness of Raytheon's AN/SPS-49 (V) radar system through responsive repair, overhaul and engineering services is a critical role for industry to play as part of the Canadian Navy's reputation for professionalism and excellence."

Raytheon Canada Limited, a wholly owned subsidiary of Raytheon Company (NYSE: RTN), has more than 1,200 employees throughout Canada who serve the aerospace and defense sectors with a broad range of high technology products and services.

Raytheon Company, with 2006 sales of $20.3 billion, is a technology leader specializing in defense, 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.

Note to Editors:

The AN/SPS-49 is an L-band, long-range, two-dimensional, air-search radar system that provides automatic detection and reporting of targets supporting the anti-air warfare mission in surface ships. The AN/SPS-49 uses a line-of-sight, horizon-stabilized antenna to provide acquisition of low-altitude targets in all sea states. External control of AN/SPS-49

modes, operation by the command and control system, and processing to identify and flag contacts as special alerts are provided for self-defense support.