The Aegis Ballistic Missile Defense (BMD) Weapon System and Standard
Missile-3 (SM-3) destroyed a ballistic missile outside the earth’s atmosphere
during an Aegis BMD Program flight test over the Pacific Ocean. Raytheon
Company develops the SM-3. Lockheed Martin develops the Aegis BMD Weapon
System.

The Feb. 24 mission — the fifth successful intercept for SM-3 — was the
first firing of the Aegis BMD “Emergency Deployment” capability using
operational versions of the SM-3 Block I missile and Aegis BMD Weapon System.
This was also the first test to exercise SM-3’s third stage rocket motor
(TSRM) single-pulse mode. The TSRM has two pulses, which can be ignited
independently, providing expansion of the ballistic missile engagement
battlespace.

The SM-3 was launched from the Aegis BMD cruiser USS Lake Erie (CG 70) and
hit a target missile that had been launched from the U.S. Navy’s Pacific
Missile Range Facility on Kauai, Hawaii.

“This successful flight test demonstrates the tactical, operational
capability of SM-3 and the Aegis BMD Weapon System in real-world conditions,”
said Edward Miyashiro, Raytheon Missile Systems vice president, Naval Weapon
Systems. “Successes like we’ve seen today provide decision makers the
confidence to proceed with deploying in quantity, providing the Nation with a
robust capability that will defend the U.S., deployed American forces, our
friends and our allies. Aegis Ballistic Missile Defense is for real.”

Japan has made decision to procure Aegis BMD with SM-3 for its Kongo class
ships.

Raytheon’s Missile Systems business in Tucson, Ariz., is developing SM-3
and leads the integrated team effort, which includes Alliant Techsystems,
Aerojet, and The Boeing Company, which are providing major subsystems.
Lockheed Martin developed the Aegis BMD Weapon System. Raytheon delivered five
SM-3 operational rounds to the Missile Defense Agency in 2004. The program is
transitioning to production, with Kinetic Warhead seeker and final integration
occurring in Raytheon’s state-of-the-art Kill Vehicle manufacturing facility,
alongside the Exoatmospheric Kill Vehicle. Final assembly and test will occur
in Camden, Ark.

Raytheon Company (NYSE: RTN – News), with 2004 sales of $20.2 billion, is an
industry leader in defense and government electronics, space, information
technology, technical services, and business and special mission aircraft.
With headquarters in Waltham, Mass., Raytheon employs 80,000 people worldwide.

Note to Editors:

Raytheon’s hit-to-kill successes with the sea-based STANDARD Missile-3
occurred on Jan. 25, June 13 and Nov. 21, 2002, and Dec. 11, 2003; and with
the Exoatmospheric Kill Vehicle, part of the Ground-based Missile Defense
program on Oct. 2, 1999; July 13 and Dec. 3, 2001; and March 15 and Oct. 14,
2002.