Raytheon wins Phalanx contract from Canadian Navy

Raytheon awarded $154.8 million Phalanx weapon system overhaul and conversion contract

CALGARY, Alberta, June 23, 2009 -- Raytheon Company (NYSE: RTN) has been awarded a $154.8 million contract from the Canadian Navy to conduct 30 sets of overhauls and convert 21 Phalanx close-in weapon systems.

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The contract calls for Raytheon to convert the Phalanx Block 1B Baseline 0 to a Baseline 1 configuration and to provide repair services and spares, as well as additional engineering and technical support. The work will be performed at Raytheon Canada Limited Support Services in Calgary, Alberta.

"This is the largest contract to date for our Canadian operations," said Rick Yuse, president of Raytheon Technical Services Company LLC (RTSC). "It affirms our expertise in maintaining and converting military systems for our allies, and it further strengthens our already strong relationship with the Canadian government and its armed forces."

"This contract provides support to the system through 2017," said Wayne Iurillo, vice president of RTSC's Customized Engineering and Depot Support business unit. "The decision by the government of Canada to award this contract to Raytheon underscores its confidence in our organization, our technology and our people."

The Phalanx close-in weapon system, developed by Raytheon Missile Systems, protects ships and their crews against an increased number of threats, including standard and guided artillery, helicopters, floating mines and a variety of shore-launched, anti-ship missiles. It is especially effective against swarming attacks by small, fast gunboats. The Phalanx Block 1B surface mode provides both a radar and a thermal imager for target identification and rapid tactical actions in the cluttered near-shore environment. Block 1B Baseline 1 improves the weapon's performance against high-velocity, maneuvering anti-ship missiles. More than 850 Phalanx systems have been built and deployed in the navies of 24 nations.

Source: Raytheon Company