Page 1 The Flat World Flat Conference Carol J. Ramsey October 24, 2006

Page 2 Who is Raytheon? An industry leader in defense and government electronics, space, information technology, technical services, and business aviation and special mission aircraft. 80,000 employees worldwide $21.9 billion in 2005 sales

Page 3 Raytheon’s Workforce 80,000 Employees 50,000 Professionals 40,000 Engineers and scientists

Page 4 The Gap Current Exempt Workforce  50% of the Current Workforce is 45+ years of age  56% of the Current Workforce has less than 15 Years of Service  6-15 year experience gap in existing workforce due to industry consolidation  In 2008, 63% of the workforce will have less than 15 years of service Building a Robust Pipeline is a Strategic Imperative Defense Industry Employee Population Profile ,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5, Years of Service Number of Exempt Employees Under

Page 5 A Reason to Care “By 2008, six million jobs will be unfulfilled in our country because people won’t have the necessary science and technology background. That tells me we have a problem.” Bill Swanson Chairman and CEO Raytheon

Page 6 Closing the Gap A November 2004 study by the American Society of Engineering Education concludes that six interventions are needed to improve technical literacy in the United States: Hands-on learning Interdisciplinary approaches Standards Improved teaching Partnerships Make it “cool”

Page 7 Raytheon’s Response

Page 8 Survey Highlights National Survey of American Middle School Students think math is boring difficult time understanding math like math a great deal and is the subject they get most excited about they'd like to know how people in music, sports, video games use math say doing well in math is important 45% 43% 33% 81% 94%

Page 9 Raytheon initiative “elevate math to cool” and inspire young students to study math and science Partners with the national middle school math competition, MATHCOUNTS® MathMovesU

Page 10  Sixth, Seventh and Eight Graders – ages 11 – 13  Employees/retirees, policy makers, school officials, the general public TARGETS Borrow relevant “cool” equities to capture middle schoolers’ attention and imagination Engage kids online, in schools and in their communities MathMovesU.com Grants Program Local Events Demonstrate to kids that math skills can lead to exciting (and cool/unexpected) careers and futures STRATEGIES and TACTICS  Improve math’s image among middle-school students: Elevate Math to Cool  Drive participation in MATHCOUNTS in key Raytheon markets  Drive awareness of Raytheon as a good corporate citizen with a focus on (math and science) education OBJECTIVES MathMovesU

Page 11 The Website Celebrities + Math – Showcases how celebrities use math – Showcases exciting careers that use math Do Math 2 Win – Weekly problems – Chance to win by correctly solving math challenges – Awards: iPod, autographed stuff, binoculars Cash 4 School Grants Program – $1M in grant funding in ‘06 Other Resources – Links to MATHCOUNTS®, NASA, etc. – Link to Scholarships America – Contact Us

Page 12 Update: MMU Results through Q Total grants and scholarships 2,067 applications received 699 winners selected $831k in grants and scholarships awarded. Media Impressions and Placements 130 million total media impressions 43 placements, including – Washington Post – WJLA – ABC Washington – Time for Kids – USA Today Web Trends  205,061 total visitors  11,117 registrants  787,367 page views to date Events 27 local events conducted company-wide National media event in DC, “Hippest Homework Happening;” 1000 media impressions generated in 30 days Hippest Homework Happening

Page 13 Go figure.