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Haas TCM Provides Total Chemical Management Services to Raytheon Corporation

WEST CHESTER, PA, April 26, 2005—Haas TCM has recently negotiated a five year extension to its agreement to provide Chemical Management Services (CMS) to Raytheon Corporation (NYSE: RTN).

Under the terms of the agreement, Haas TCM will continue to perform the sourcing, procurement, logistics, and consumption management of chemicals and industrial gases used at Raytheon facilities. In addition, Haas TCM provides services associated with the management of waste and other byproducts of chemicals used at these plants and also provides activity based information in support of Raytheon's environmental, health, and safety (EH&S) compliance management efforts.

Since its launch in 1998 as Raytheon’s “Chemical and Gas Management Program (CGMP)”, this initiative has grown to cover 50 facilities in North America, which comprise 96% of the chemicals Raytheon uses on the continent. This high degree of enterprise penetration is attributable to Haas TCM’s flexible service model and Raytheon’s deployment of its vision for integrated supply chain management and desire for a mechanism to facilitate chemical life cycle evaluation of its processes.

“Raytheon is one of the first large companies I know to transfer on an enterprise scale the responsibility for materials supply and associated engineering and data management to an outside company” says Leigh Hayes, Haas TCM’s Executive Vice President. “Moreover, Raytheon has recognized throughout the program the need for incentives alignment and has prioritized maintaining the optimum balance for optimum performance”, adds Hayes. “The result for Raytheon has been significant cost reductions and business process improvements.”

Haas TCM plans to continue enhancement of tcmIS®, its enterprise data integration platform, and focus its engineering expertise to target additional areas of high Raytheon savings potential that the CGMP team members have identified. “We expect savings and process improvement rates in the new contract to mirror the achievements of the previous contract,” says Hayes.

Headquartered in West Chester, PA, with about 300 employees, annual revenues of $150 million and operations on three continents, Haas TCM currently provides chemical lifecycle management services to customers in the automotive, aerospace, electronics, semiconductors, defense, metalworking, transportation, food/beverage and heavy equipment manufacturing industries.

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