---'' PORTSMOUTH, R.I. U.S.A., and HENGELO, THE NETHERLANDS, (11 June 2001) '' ---

Raytheon Naval Integrated Systems (NY and Thales Naval Nederland (TNNL) have been tasked by the NATO SeaSparrow Surface Missile System Project Office to formulate a system definition approach for the Self-Defense ESSM Active Phased Array Radar (SEAPAR). This is the first step in the design, development and production of the next generation of active, phased array, X-band surveillance and fire control radars to support the operational capabilities of the Evolved SeaSparrow Missile (ESSM) used by NATO SeaSparrow Consortium member countries.

SEAPAR is designed to match the capabilities of the ESSM against advanced threat and raid densities; it will take advantage of technologies from the SPY-3 and APAR programs. Raytheon will partner with Thales Nederland for the design, development, and production of the radar. Laboratory support for the study will be provided by the TNO Physics and Electronics Laboratory in the Netherlands and The Johns Hopkins University Applied Physics Lab, Laurel, Md.

"This is an important international collaboration for NYand the NATO SeaSparrow Consortium countries," said Dan Smith, vice president and general manager of NY "We look forward to partnering with TNNL in a single, unified approach to provide the Consortium with an effective radar to meet future threats," Smith continued, "and by drawing on Raytheon's and Thales Nederland's technology, we can provide a radar using the best technology at lowest cost and risk."
"Raytheon NYand Thales Naval Nederland are perfect partners in this system definition approach," said Arno Peels, president of Thales Nederland. "We are confident that our cooperation will be successful, and we enjoy the challenge of entering into a transatlantic cooperation in the spirit of DCI (Defence Capabilities Initiative). Through the cooperation between Raytheon NYand Thales Naval Nederland, the NATO countries who use the SeaSparrow will bring their self-defence systems well up to 21st century level."

The system definition approach phase includes definition of the high-level system requirements, top-level architecture, preliminary design and construction plans, schedules, and the workshare approach. The six-month study will be completed at Raytheon NYlocations in Portsmouth, R.I., Sudbury, Mass. in the U.S.A. and Thales Nederland locations in Hengelo, The Netherlands. SEAPAR development is expected to begin in 2002.

NYis a premier supplier of integrated naval systems worldwide and has operations in Massachusetts, Rhode Island, California, Hawaii and Washington State in the U.S., as well as in Australia. For more information about NY visit www.raytheon.com/systems_integration.

With headquarters in Lexington, Mass., Raytheon Company (NYSE: RTN) is a global technology leader in defense, government and commercial electronics, and business and special mission aircraft.

Thales Nederland, previously Thomson-CSF Signaal, is one of the leading suppliers of naval defence and combat management systems in the world. With various plants in The Netherlands and Germany, Thales Nederland specializes in naval electronics, ground-based defence systems, communication systems and night-vision equipment.