Raytheon Joins General Dynamics-Final Analysis Partnership Making Equity Investment in Final Analysis; General Dynamics Selects Raytheon as Ground Segment Contractor for Final Analysis Global Wireless Data Network - Company Business and Marketing

Cambridge Telcom Report, April 3, 2000

General Dynamics has selected Raytheon Company to provide the total ground network infrastructure for the FAISAT global wireless data system being developed by Final Analysis. Concurrently, Raytheon has made a significant cash equity investment in Final Analysis.

The FAISAT system will deliver new digital data information and messaging services to mass markets, including Internet-related growth markets beginning 2002. Final Analysis is one of only two U.S. firms that have built and operated "Little LEO" (Low-Earth Orbiting) satellite systems.

General Dynamics Information Systems was selected last year as the overall system engineering and integration partner for the Final Analysis FAISAT system and was awarded the role of prime contractor for the ground segment. Raytheon will complete the design and construct a global network control center, network operations centers, RF ground stations, satellite control centers and the terrestrial backbone infrastructure.

As the ground segment partner, Raytheon's Denver-based Space Systems business unit is also responsible for the wholesale and retail billing systems to facilitate the standardized accounting and billing processes for national service providers and value added resellers.

Having installed more than 40 satellite ground stations worldwide and over 30 years experience in the field, Space Systems is the global leader in providing reliable, cost-effective satellite command and control system solutions.

The value of the ground segment development, composed of the ground segment subcontract and equity investment by Raytheon in Final Analysis, is approximately $55 million.

Raytheon Company (NYSE: RTNA; RTNB), 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 world, employs approximately 100,000 people and has annualized sales of approximately $24 billion.

James I. Finley, President, General Dynamics Information Systems, said: "Raytheon's breadth and depth of experience in satellite ground stations complements the experience of General Dynamics and Final Analysis in delivering a state-of-the-art wireless data network. We welcome Raytheon to our world-class team."

"Selecting Raytheon was the logical choice," said Nader Modanlo, Chairman and President of Final Analysis. "Raytheon's end-to-end ground networking capabilities and proven track record ensures program success for the Final Analysis team. Leveraging its extensive commercial and global experience and expertise, Raytheon will support the global needs of FAISAT and deliver an integrated ground infrastructure."

According to Rick Ambrose, vice president of Space Systems for Raytheon's Command, Control, Communication and Information (C3I) Systems, "FAISAT is an extraordinary opportunity for Raytheon to work with Final Analysis and General Dynamics in providing leading-edge wireless data services. Raytheon is very selective in its investment approach, and we are impressed by the Final Analysis business model and their focused market implementation plans."

The global FAISAT wireless data system will provide consumers, industries and governments with low-cost, high-quality data information services such as e-mail and file transfers, mobile asset tracking, remote monitoring and control, and data acquisition.

Target markets in this estimated multibillion-dollar service sector include global personal and business messaging and applications for the transportation, environmental, utility, oil and gas, agribusiness, automotive and other industries.

General Dynamics Information Systems (http://www.gd-is.com) based in Bloomington, Minn., is an operating unit of General Dynamics (http://www.generaldynamics.com) that provides world class information processing systems and information management services for the U.S. Department of Defense and a number of allied nations. General Dynamics (NYSE: GD), headquartered in Falls Church, Va., employs approximately 43,000 people and has annualized sales of approximately $10 billion. The company has leading market positions in shipbuilding and marine systems, land and amphibious combat systems, information systems, and business aviation.

Final Analysis (http://www.finalanalysis.com), based in Lanham, Md., is an aerospace and telecommunications company formed in 1992 on a commitment to space commercialization through low-cost access. Final Analysis is an end-to- end turnkey service provider of spacecraft, operations and launch services. Final Analysis has received authorization from the Federal Communications Commission to build and operate a global constellation of satellites that operate in UHF/VHF frequencies.