LEXINGTON, Mass., Mar. 16, 1999 - Raytheon Company (NYSE: RTNA, RTNB) announced today it has been awarded a $14.9 million fixed-price contract by the U.S. Army's Simulation, Training and Instrumentation Command for the second production phase of the Fire Support Combined Arms Tactical Trainer (FSCATT) program.

The FSCATT program is providing the Army's active and reserve field artillery forces with a training system that enables soldiers to train more efficiently across broader missions at reduced cost. Field artillery gunnery teams -- including cannon crewmen, fire direction specialists and fire support specialists -- are being trained individually and as a team on execution of indirect fire mission operations.

"By partnering with our Army customer and through the contributions of other team members we have been able to develop a robust FSCATT training system," said Gary Sackett, Raytheon Systems Company's FSCATT programs manager. "This training system enables artillery crews to experience a wide range of simulated scenarios without having to use actual ammunition or operate tactical equipment."

This new production phase calls for Raytheon to deliver 16 additional M109A5 howitzer crew trainers, collective training control subsystems and instructor/operator stations. Combined with previous awards, Raytheon currently is under contract to deliver a total of 34 M109A5 howitzer crew training systems. In addition, Raytheon also is delivering one M109A6 Paladin howitzer crew trainer.

The 16 M109A5 howitzer crew trainers Raytheon will deliver under this production option will be fully integrated with an array of sensors to monitor individual and crew performance. The sensors will measure direction and elevation settings on the fire control instruments and monitor projectile selection, fuze selection and setting, propellant selection and orientation and ramming and firing procedures.

Raytheon's FSCATT production team members include United Defense Limited Partnership and AAI Corporation.

Raytheon Company, based in Lexington, Mass., is a global technology leader that provides products and services in the areas of commercial and defense electronics, engineering and construction, and business and special mission aircraft. Raytheon has operations throughout the United States and serves customers in more than 80 countries around the world.