Raytheon Awarded UK MOD Paveway IV Replenishment Contract

HARLOW and GLENROTHES, United Kingdom, April 3, 2012 /PRNewswire/ -- The UK Ministry of Defence (MOD) has awarded Raytheon UK a replenishment contract for Paveway IV, the latest generation GPS precision-guided munition, as part of a 60 million pound contract. Raytheon UK is focused on a technological growth path which, under the UK MOD's SPEAR (Selective Precision Effects at Range) CAP 1 program, will enhance the system's capability with low collateral and penetrator warhead options, enhanced moving target capability and enhanced range.

"Raytheon UK has provided flexible and responsive support to Paveway operations over a considerable period; in particular, their outstanding efforts were key to the RAF success in the recent Libyan campaign where the Paveway series of weapons were used extensively," said Wing Commander Clive Roads, IGMR FreeFall IPT Leader. "The MOD is extremely pleased to work with a company which understands the operational imperative, placing this first in their support to our Forces. Raytheon UK have been able to react very quickly to the need to replenish our stocks of the high precision, all weather, Paveway IV weapon system to maintain our ability to react at short notice to emerging threats. The weapon has now been extensively used in all types of employment roles and has proven to exceed all expectations for reliability, accuracy and its ability to limit collateral damage through its sophisticated and integrated guidance, and fuzing systems."

Paveway IV is a UK manufacturing success story, with many companies across the UK involved in the development and manufacture of advanced components. Benefiting from the current contract are Portsmouth Aviation, who manufacture the tail system; Thales Missile Electronics, based in Basingstoke, who produce the all-electronic Aurora fuze; and EDO MBM of Brighton, who will manufacture the aircraft's umbilical interconnect system and containers. As a result of Raytheon undertaking long lead-time procurement and working with its supply chain, the delivery schedule has been reduced to seven months from 18 months.

Bob Delorge, chief executive of Raytheon UK, commented: "The Paveway IV contract sustains highly skilled jobs in the UK's advanced manufacturing arena and is one of the UK's leading examples of technology transfer success. A pivotal element of the RAF's air-to-surface target engagement capability, Paveway IV enhances the nation's military capability and has been the precision-guided bomb of choice for the Royal Air Force since 2008."

Raytheon continues to pursue a number of export opportunities for Paveway IV, particularly where Typhoon and Tornado are deployed and the weapon is already integrated. Raytheon is also under contract to integrate Paveway IV for the UK onto the Joint Strike Fighter aircraft.

About Raytheon UK

Raytheon UK is a subsidiary of Raytheon Company. It is a prime contractor and major supplier to the UK Ministry of Defence and has developed strong capabilities in mission systems integration in defense, national security and commercial markets. Raytheon UK also designs, develops and manufactures a range of high-technology electronic systems and software at its facilities in Harlow, Glenrothes, Uxbridge, Waddington and Broughton.

About Raytheon

Raytheon Company (NYSE: RTN), with 2011 sales of $25 billion, is a technology and innovation leader specializing in defense, homeland security and other government markets throughout the world. With a history of innovation spanning 90 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 71,000 people worldwide. For more about Raytheon, visit us at www.raytheon.com and follow us on Twitter at @raytheon.

Notes to Editors

With more than 450 skilled engineers supporting its complex weapons' business in the UK, Raytheon's facility in Glenrothes, Scotland, designs and manufactures guidance electronics, actuation systems and power supplies for a wide range of complex weapons and forms part of Raytheon Missile Systems' and other missile prime contractors' global supply chain. The prime contract and in-service support is provided through Raytheon's Harlow facility, which is the design authority for the Paveway IV weapon system. The company was awarded a 10 million pound, four-year contract in May 2011 to provide in-service support for both current and legacy Paveway systems.

Raytheon UK continues to be a valued player in the UK complex weapons sector, with the ability to reachback for value for money solutions and technologies, integrate weapon systems onto UK platforms, enhance existing products to meet future UK requirements, industrialize in order to provide an appropriate level of UK operational sovereignty, provide in-country and in-service support for its products, and export from the UK when appropriate.

At current exchange rates of roughly 1.6 dollars to the pound, 60 million pounds converts to approximately $96 million; and 10 million pounds converts to approximately $16 million.

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SOURCE Raytheon Company