PALO ALTO, Calif., and MARLBOROUGH, Mass., (June 19, 2002) -- HP (NYSE: HPQ) will provide iPAQ™ Pocket PC technology and intellectual property to Raytheon Company (NYSE: RTN) as an extension of Raytheon's original 1986 technology licensing agreement with Compaq, which recently merged with HP. Raytheon will manufacture and market Agama-a handheld computer based on a ruggedized iPAQ-and repackage it to withstand extreme environmental conditions required for military and industrial use.

According to a March 2001 Venture Development Corporation report, the fully ruggedized handheld computer market is expected to exceed $129 million by 2005.

Raytheon's Agama is one of the company's extended environment, commercial-off-the-shelf (E2COTS™) rugged computer products customized for the global military, heavy industrial and niche markets. Customers in these markets need products that can withstand adverse environmental conditions such as extreme temperatures, severe shock, vibration and humidity. Agama will be available in the summer of 2002.

Frank Marchilena, Raytheon Company executive vice president, said, "Raytheon leverages HP's multi-billion dollar computer technology investment to provide solutions for customers with rigorous requirements. Our E2COTS™ products are tough enough to survive wartime conditions."

"This agreement marks the continuation of a 15-year relationship between HP and Raytheon," said Jim Milton, Americas managing director and senior vice president, HP Enterprise Systems. "The relationship is mutually beneficial. It allows Raytheon to expand its product portfolio and HP to grow its market presence and gain a new vertical market."

Ranked as the #1 Pocket PC in the world, the HP iPAQ Pocket PC continues to define next generation voice and data access solutions to better communicate and manage information. HP plans to incorporate the newest X-Scale processor into the iPAQ Pocket PC product line in the mid-year timeframe, thus providing a clear product improvement path for Agama.

Raytheon's Agama handheld computer is part of the company's E2COTS™ portfolio of Rugged Computer Products, which includes the Chameleon and Iguana notebooks as well as the Gecko flat panel display.

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Editor's Notes:

Photos and information about Raytheon Computer products are available at http://www.raytheon-computers.com.

History of Partnering
Raytheon partnered with HP for its innovative technology and its depth of experience. The extension of the technology license agreement further exemplifies the business alliance that exists between Raytheon and HP.

Through various technology agreements and partnerships, HP and Raytheon have helped to grow each other's business. An existing technology agreement allows Raytheon to build and resell Alpha Systems to military specifications using legacy-Compaq technology. HP and Raytheon are also partners on the ASCI supercomputing project at the Los Alamos National Laboratory.

About Raytheon
With headquarters in Lexington, Mass., Raytheon Company is a global technology leader in defense, government and commercial electronics, and business and special mission aircraft.

About HP
HP is a leading global provider of products, technologies, solutions and services to consumers and businesses. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. HP merged with Compaq Computer Corp. on May 3, 2002. The merged company had combined revenue of approximately $81.7 billion in fiscal 2001 and operations in more than 160 countries. More information about HP is available at http://www.hp.com.

Patricia Perlini of Raytheon Company 219.429.5547