FOR IMMEDIATE RELEASE                                          AT
THURSDAY, OCTOBER 16, 1997                         (202) 616-2771
                                               TDD (202) 514-1888

      JUSTICE DEPARTMENT REQUIRES DIVESTITURES AS CONDITION 
           OF RAYTHEON'S ACQUISITION OF HUGHES AIRCRAFT


     WASHINGTON, D.C. -- The Department of Justice today filed a
lawsuit and proposed settlement that will allow Raytheon Company
to go forward with its $5.1 billion acquisition of General
Motors' Hughes Aircraft subsidiary. 

     The agreement, which was announced on October 2, 1997,
requires Raytheon to divest two defense electronics businesses in
order to preserve competition in sophisticated technology for
U.S. weapons systems.
 
     The agreement also requires that Raytheon establish
procedures that will prohibit the two teams--employees from
Raytheon and Hughes--from disclosing information to each other
and to senior management of Raytheon on the development and
production of a new antitank missile for the Army.  The agreement
would preserve the independence of Raytheon and Hughes as
competitors of the FOTT Program. 
     
     The Antitrust Division said Raytheon received final approval
from the Departments of Justice and Defense by reaching an
agreement with the Air Force setting firm prices for the AMRAAM
air-to-air missile. Raytheon and Hughes have been competing
bidders for the AMRAAM missile and, although, the acquisition
eliminates further competition between the two, the setting of a
firm price will save the Air Force $180 million over the next
four years.
  
     The Department's Antitrust Division filed the complaint and
proposed settlement in U.S. District Court in Washington, D.C.

     As required by the Tunney Act, the proposed consent decree
will be published in the Federal Register, together with the
Department's competitive impact statement.  Any person may submit
written comments concerning the proposed consent decree during a
60-day comment period to J. Robert Kramer II, Chief, Litigation
II Section, Antitrust Division, U.S. Department of Justice, 1401
H St., N.W., Suite 3000, Washington, D.C. 20530 (202/307-0924).

     At the conclusion of the 60-day comment period, the U.S.
District Court in Washington, D.C. may enter the consent decree
upon finding that it serves the public interest.

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