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19 Jun 02. HP (NYSE:HPQ – News) announced that it will provide HP iPAQ Pocket PC technology and intellectual property to Raytheon Company (NYSE:RTN – News) as an extension of Raytheon’s original 1986 technology licensing agreement with Compaq Computer Corp., 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 Corp. 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(TM)) rugged computer products that are customized for the global military, heavy industrial andniche 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 go to war.”

“This agreement marks the continuation of a 15-year relationship between HP and Raytheon,” said Jim Milton, managing director, HP Americas, and senior vice president, HP Enterprise Systems Group. “The relationship is mutually beneficial. It allows Raytheon to expand its product portfolio and HP to increase its market presence and gain a new vertical market.” Ranked by analysts as the No. 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 from Intel(r) into the iPAQ Pocket PC productline later this year, providing a clear product improvement path for Agama.

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

Comment: Although this announcement does not give Raytheon exclusive rights to ruggedize the HP product, Raytheon have certainly established a niche products position for a product which is envisaged to have extensive utilization for such projects as FBCB2 and BOWMAN.

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