Raytheon Agrees to Sell Raytheon Aircraft Company to GS Capital Partners and Onex Partners for $3.3 Billion

    WALTHAM, Mass., Dec. 21, 2006 /PRNewswire-FirstCall/ -- Raytheon
Company (NYSE: RTN) announced today that it has signed a definitive
agreement to sell its wholly owned subsidiary Raytheon Aircraft Company
(RAC) to Hawker Beechcraft Corporation, a new company formed by GS Capital
Partners, an affiliate of Goldman Sachs, and Onex Partners. The Company
also announced that, subject to the closing of this transaction, its Board
of Directors has approved further debt reduction and an increase in the
Company's stock repurchase authorization.
   "The sale of Raytheon Aircraft Company further demonstrates our
commitment to deliver on the company's strategy of focusing on our core
Government and Defense business and providing the best technology,
solutions and Mission Support to our global customers," said William H.
Swanson, Raytheon's Chairman and CEO.
   The Company will sell RAC for approximately $3.3 billion and expects
net after-tax proceeds to be approximately $2.5 billion.
   The transaction includes Raytheon Aircraft facilities and other assets
in Wichita and Salina, Kansas; Little Rock, Arkansas; Dallas, Texas; as
well as its Fixed Based Operations (FBO) network across the United States,
United Kingdom and Mexico.
   The sale, which is subject to customary conditions and regulatory
approvals, is expected to close in the first half of 2007.
   Raytheon announced in July 2006 that it was reviewing strategic
alternatives for Raytheon Aircraft Company, a world leading manufacturer of
business and special-mission aircraft, providing a wide variety of aviation
products and services for businesses, governments and individuals. RAC has
more than 8,500 employees and has approximately 100 authorized service
centers worldwide.