LEXINGTON, Mass., May 4, 1999 - Raytheon Company (NYSE: RTNA, RTNB) announced today it has been awarded an approximate $11.5 million contract from the U.S. Army's Simulation, Training and Instrumentation Command to upgrade individual flight simulators for the UH-60A/L Black Hawk and CH-47D Chinook.

The UH-60 and CH-47 simulators are used by the Eighth U.S. Army, which operates within the Republic of South Korea, to retain aircrew operational proficiency and develop mission readiness skills. Today, UH-60 and CH-47 pilots are honing their skills on trainers integrated with a visual system data base that replicates generic Central European terrain.

Raytheon will upgrade both simulators' visual system image generation systems. In accomplishing this upgrade, each simulator will be integrated with a new Evans & Sutherland Computer Corporation ESIG image generation system.

Raytheon also will design a new visual system data base, encompassing the Korean peninsula, that will enhance simulator training realism and mission readiness preparation by UH-60 and CH-47 pilots. Approximately 11,000 square nautical miles of the data base will be geo-typical. Over 1,400 square nautical miles of the data base will be geo-specific, providing high scene detail for nine identified geographic areas. A generic data base will be developed for the remainder of the peninsula.

Additional modifications will include upgrades to each simulator that will keep the trainers concurrent with aircraft design changes made to each helicopter. In addition, the UH-60 simulator will receive a new computational system and the CH-47 trainer will add a new instructor operator station.

In its updated and concurrent mode, both the UH-60 and CH-47 simulators will enable aircrews to practice ground operations, airfield take offs and landings, confined area landings, hovering, formation flight, instrument flight, emergency procedures, weapons delivery and electronic countermeasures within a Korean visual data base. The upgraded trainers will ensure positive pilot habit transfers between the simulators and the aircraft, allowing more UH-60 and CH-47 pilot training to be offloaded to the training devices.

The new image generators, visual system data base and the UH-60 simulator's computational system will be delivered to the customer during the first phase of the program, 12 months following contract award. Concurrency and other simulator upgrades for both trainers are scheduled for completion during the second phase of the program, within 24 months following contract award.

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.