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'Raytheon Company' () is a major American defense contractor and industrial corporation with core manufacturing concentrations in defense systems and defense and commercial electronics. It was previously involved in corporate and special-mission aircraft until early 2007.
Established in 1922, the company reincorporated in 1928 and adopted its present name in 1959. The company has around 73,000 employees worldwide and annual revenues of approximately US$20 billion. More than 90 percent of Raytheon's revenues were obtained from defense contracts and, as of 2007, it was the fifth largest defense contractor in the world,[2] and is the fourth largest defense contractor in the United States by revenue (after Lockheed Martin, Boeing and Northrop Grumman).
Raytheon Headquarters was moved from Lexington, Massachusetts to Waltham, Massachusetts on October 27, 2003.[3] The company was previously headquartered in Waltham from 1941 until it opened its then Lexington headquarters in 1961.
History
An early Raytheon Tube Box
In 1922, two former engineering college roommates Laurence K. Marshall and Vannevar Bush, along with scientist Charles G. Smith, founded the American Appliance Company in Cambridge, Massachusetts.[4] Its focus, which was originally on new refrigeration technology, soon shifted to electronics. The company's first product was a gaseous (helium) rectifier that was based on Charles Smith's earlier astronomical research of the star Zeta Puppis.[5] The electron tube was christened with the name ''Raytheon'' ("light of/from the gods") and was used in a battery eliminator, a type of radio-receiver power supply that plugged into the power grid in place of large batteries. This made it possible to convert household alternating current to direct current for radios and thus eliminate the need for expensive, short-lived batteries.
In 1925 the company changed its name to Raytheon Manufacturing Company and began marketing its rectifier, under the ''Raytheon'' brand name, with great commercial success. In 1928 Raytheon merged with Q.R.S. Company, an American manufacturer of electron tubes and switches, to form the successor of the same previous name, Raytheon Manufacturing Company. In 1933 it diversified by acquiring Acme-Delta Company, a producer of transformers, power equipment, and electronic auto parts. By the 1930s it had already grown to become one of the world's largest vacuum tube manufacturing companies.
Early in World War II, physicists in England invented the magnetron, a specialized microwave-generating electron tube that markedly improved the capability of radar to detect enemy planes. American companies were then sought by the U.S. government to perfect and mass-produce the magnetron for ground-based, airborne, and shipborne radar systems, and, with support from the Massachusetts Institute of Technology's Radiation Laboratory (recently formed to investigate microwave radar), Raytheon received a contract to build the devices. Within a few months of being awarded the contract, Raytheon had already begun to mass manufacture magnetron tubes for use in radar sets and then complete radar systems. At war's end in 1945 the company was responsible for about 80 percent of all magnetrons manufactured. During the war Raytheon also pioneered the production of shipboard radar systems, particularly for submarine detection.
Raytheon's research on the magnetron tube revealed the potential of microwaves to cook food. In 1945 Raytheon's Percy Spencer invented the microwave oven by discovering that the magnetron could rapidly heat food. In 1947 the company demonstrated the Radarange microwave oven for commercial use.
In 1945 the company expanded its electronics capability through acquisitions that included the Submarine Signal Company (founded in 1901), a leading manufacturer of maritime safety equipment. With its broadened capabilities, Raytheon developed the first guidance system for a missile that could intercept a flying target. In 1948 Raytheon began to manufacture guided missiles. In 1950 its Lark missile became the first such weapon to destroy a target aircraft in flight. Raytheon then received military contracts to develop the air-to-air Sparrow and ground-to-air Hawk missiles — projects that received impetus from the Korean War. In later decades it remained a major producer of missiles, among them the Patriot antimissile missile and the air-to-air Phoenix missile. In 1959 Raytheon acquired Apelco-Applied Electronics, which significantly increased its strength in commercial marine electronics. In the same year, it changed its name to 'Raytheon Company'.
A Raytheon Tomahawk Block IV cruise missile during a U.S. Navy flight test at NAWS China Lake, California (Nov. 10, 2002)
During the post-war years Raytheon also made radio and television transmitters and related equipment for the commercial market in the U.S. and got into the educational publishing business with the acquisition of D.C. Heath. In the 1950s Raytheon began manufacturing transistors, including the CK722, priced and marketed to hobbyists.
In 1965 it acquired Amana Refrigeration, Inc., a manufacturer of refrigerators and air conditioners. Using the Amana brand name and its distribution channels, Raytheon began selling the first countertop household microwave oven in 1967 and became a dominant manufacturer in the microwave oven business.
In 1980, Raytheon acquired Beech Aircraft Corporation, a leading manufacturer of general aviation aircraft founded in 1932 by Walter H. Beech. In 1993 the company expanded its aircraft activities by adding the Hawker line of business jets by acquiring Corporate Jets Inc., the business jet product line of British Aerospace (now BAE Systems). These two entities were merged in 1994 to become the Raytheon Aircraft Company. In the first quarter of 2007 Raytheon sold its aircraft operations, which is now operating as Hawker Beechcraft. The product line of Raytheon's aircraft subsidiary included business jets such as the Hawker 800XP and Horizon, the Beechjet 400A, and the Premier I; the popular Beech King Air series of twin turboprops; and single-engine piston aircraft such as the Beech Bonanza. Its special-mission aircraft included the single-turboprop T-6A Texan II, which had been chosen to be the primary training aircraft for the U.S. Air Force and U.S. Navy.
In 1991, during the Persian Gulf War, Raytheon's Patriot missile received great international exposure, resulting in a substantial increase in sales for the company outside the United States. In an effort to establish leadership in the defense electronics business, Raytheon purchased in quick succession Chrysler Corporation's defense electronics and aircraft-modification businesses (1996) and the defense business units of E-Systems (1997) and Texas Instruments (1997). Also in 1997, Raytheon acquired the aerospace and defense business of Hughes Aircraft Company from Hughes Electronics Corporation — a subsidiary of General Motors, which included a number of product lines previously purchased by Hughes Electronics including the former General Dynamics missile business, the defense portion of Delco Electronics (Delco Systems Operations), and Magnavox Electronic Systems.
Raytheon also divested itself of several nondefense businesses in the 1990s, including Amana Refrigeration.
On October 12, 1999 Raytheon exited the personal rapid transit (PRT) business as it terminated its PRT 2000[6] system due to high-cost of development and lack of interest.[7] The PRT 2000 prototype now sits idle at their Marlboro, Massachusetts facility.[8]
Company structure
Businesses
Raytheon is composed of six major business divisions:
★ Integrated Defense Systems — based in Tewksbury, Massachusetts; Dan Smith, President
★ Intelligence and Information Systems — based in Garland, Texas; Mike Keebaugh, President
★ Missile Systems — based in Tucson, Arizona; Louise Francesconi, President
★ Network Centric Systems — based in McKinney, Texas; Colin Schottlaender, President
★ Raytheon Technical Services Company LLC — based in Reston, Virginia; Rick Yuse, President
★ Space and Airborne Systems — based in El Segundo, California; Jon Jones, President
Raytheon’s businesses are supported by several dedicated international operations including: Raytheon Australia (Managing Director, Ron Fisher); Raytheon Canada Limited; operations in Japan; Raytheon Microelectronics in Spain; Raytheon System Limited in the UK; and ThalesRaytheonSystems, France.
Strategic Business Areas
In recent years, Raytheon has expanded into other fields while redefining some of its core business activities. Raytheon has identified four key 'Strategic Business Areas' where it is focusing its expertise and resources, including:
★ Homeland Security
★ Missile Defense
★ Precision Engagement
★ Intelligence, Surveillance, Reconnaissance (ISR)
Leadership
William H. Swanson is the Chairman and CEO. Other members of the board of directors of Raytheon are: Barbara Barrett, Vernon Clark, Ferdinand Colloredo-Mansfeld, John Deutch, Thomas Everhart, Frederic Poses, Warren Rudman, Michael Ruettgers, Ronald Skates, William Spivey, and Linda Stuntz.
International
In addition to its US domestic facilities, Raytheon has offices in countries worldwide, including Australia, Belgium, Brazil, Canada, Chile, China, Czech Republic, Egypt, France, Germany, Greece, India, Italy, Japan, Kuwait, Malaysia, Marshall Islands, Norway, Republic of Korea, Singapore, Saudi Arabia, Spain, Sweden, Taiwan, Thailand, Turkey, United Arab Emirates, and the United Kingdom.
Products and services
Overview
:''See for products manufactured and sold by Raytheon Company''
Raytheon's electronics and defense-systems units produce air-, sea-, and land-launched missiles, aircraft radar systems, weapons sights and targeting systems, communication and battle-management systems, and satellite components. Raytheon is also a leader in marine electronics, manufacturing shipboard radar and sonar systems, autopilots, depth finders, and Global Positioning System (GPS) devices.
Radars and sensors
A PAVE PAWS Early Warning Radar System built by Raytheon, based at Clear AFS, Alaska
Raytheon is a developer and manufacturer of radars (including AESAs), electro-optical sensors, and other advanced electronics systems for airborne, naval and ground based military applications. Examples include:
★ APG-63/APG-70 radars for the F-15 Eagle
★ APG-65/APG-73/APG-79 radars for the F/A-18 Hornet
★ APG-77 radar for the F-22 Raptor (joint development with Northrop Grumman )
★ ALE-50 towed decoy
★ ALR-67(V)3 and ALR-69A radar warning receivers
★ AN/APQ-181 (AESA upgrade currently in development), for the B-2 Spirit bomber
★ Integrated Sensor Suite (ISS) for the RQ-4 Global Hawk UAV
★ ASQ-228 ATFLIR (Advanced Targeting Forward-Looking Infrared) pod
★ TPQ-36/TPQ-37 Firefinder and MPQ-64 Sentinel mobile battlefield radars
★ SLQ-32 shipboard EW system
★ Large fixed-site radars such as PAVE PAWS, BMEWS, and the National Missile Defense X-Band Radar (XBR)
Satellite sensors
Raytheon, often in conjunction with Boeing, Lockheed Martin or Northrop Grumman, is also heavily involved in the satellite sensor business. Much of its Space and Airborne Systems division in El Segundo, CA is devoted to this, a business it inherited from Hughes. Examples of programs include:
★ Space Tracking and Surveillance System (STSS), being developed for the Ballistic Missile Defense. Raytheon is building the sensor payload. Additionally, the El Segundo site is the company center of excellence for the development and production of laser products.
★ Raytheon company’s Navy Multiband Terminal (NMT) is the first advanced, next-generation satellite communications (SATCOM) system to successfully log on to and communicate with the U.S. government's Milstar SATCOM system using low and medium data rate waveforms. The system provides naval commanders and sailors with greater data capacity, as well as improved protection against enemy intercept and jamming.
Communications
★ Raytheon’s Universal Control System (UCS) is an unmanned aerial system (UAS) "cockpit" that improves operator awareness and efficiency, while providing the ability to control multiple unmanned aircraft, and reduce potential accidents.[9]
★ The company also makes several software radio and digital communication systems for military applications such as Cooperative Engagement Capability (CEC), is participating in Navy-Marine Corps Intranet (NMCI), ECHELON and the Joint Tactical Terminal (JTT) programs.
Radioactive materials detection system
As part of the company’s growing homeland security business and strategic focus, Raytheon has teamed with other contractors to develop an Advance Spectroscopic Portal (ASP) to allow border officials to peer into vehicles and containers to identify radioactive materials.[10]
Semiconductors
Raytheon also manufactures semiconductors for the electronics industry. In the late 20th century it produced a wide range of integrated circuits and other components, but as of 2003 its semiconductor business specializes in gallium arsenide (GaAs) components for radio communications. It is also making efforts to develop gallium nitride (GaN) components for next-generation radars and radios.
Missile defense systems
In the framework of Ground-Based Midcourse Defense, Raytheon is developing a Ground-Based Interceptor (GBI) which includes a booster missile and a kinetic Exoatmospheric Kill Vehicle (EKV), along with several key radar components, such as the Sea-Based X-Band Radar (SBX) and the Upgraded Early Warning Radars (UEWR).
Missiles
on display at the Paris Air Show, 2005
Raytheon is a developer of missiles and related missile defense systems. These include:
★ AGM-65 Maverick
★ AGM-88 HARM
★ AGM-129 ACM (Advanced Cruise Missile)
★ AGM-154 Joint Standoff Weapon
★ AIM-7 Sparrow
★ AIM-9 Sidewinder
★ AIM-120 AMRAAM
★ BGM-109 Tomahawk
★ MIM-23 Hawk
★ MIM-104 Patriot
★ RIM-7 Sea Sparrow
★ RIM-162 ESSM
Hi-tech simulators
Raytheon also produces and runs the ABACUS (Advanced BAttlefield CompUter Simulation) or Higher Formation Trainer (HFT) for training HQ's from small specialist units up to corps level.
Controversies
As the vast majority of Raytheon's revenues have been obtained from defense contracts, there has been a necessarily tight relationship of cooperation between itself and the U.S. Department of Defense and other U.S. government departments and agencies. This, along with heavy lobbying, has led to perennial charges of influence peddling. Raytheon, for instance, contributed nearly a million dollars to various defense-related political campaigns in the presidential election year of 2004, spending much more than that on lobbying expenses.[11] And there are many tight ties between the company and all levels of government. For example, Richard Armitage, a former United States Deputy Secretary of State, is linked to the company through consultancy work. John M. Deutch, a former U.S. Director of Central Intelligence, sits on the board of directors, along with Warren Rudman, a former Senator. On the other hand, Raytheon has also been involved in several contract disputes with the U.S. Government.
Illegal obtention of classified information in a bidding process
In March 1990, Raytheon pleaded guilty to one felony count of illegally obtaining classified Air Force budget and planning documents.[12] U.S. District Judge Albert V. Bryan, Jr. imposed a $10,000 criminal fine for one felony count of "conveyance without authority" and $900,000 in civil penalties and damages. The documents allegedly gave Raytheon an unfair advantage against its competitors in bidding for weapons contracts. Although the plea only involved 1983 Air Force documents, United States Attorney Henry Hudson said Raytheon also illegally obtained a wide range of secret Pentagon documents.
Disputed claims of the Patriot missile
During the 1991 Gulf War, Raytheon received widespread publicity in the United States in connection with its manufacture of the Patriot missile (MIM-104 Patriot). The Patriot missile is an anti-aircraft missile that was upgraded to have some capability against ballistic missiles. The Patriot had allegedly intercepted Scud missiles launched by Iraq in its defense against the U.S.-led invasion. When President George H. W. Bush traveled to Raytheon's Patriot manufacturing plant in Andover, Massachusetts during the Gulf War, he declared, the ""Patriot is 41 for 42: 42 Scuds engaged, 41 intercepted!"[13] After the Gulf War had concluded, the staff of the House Government Operations Subcommittee on Legislation and National Security reported,
:"The Patriot missile system was not the spectacular success in the Persian Gulf War that the American public was led to believe. There is little evidence to prove that the Patriot hit more than a few Scud missiles launched by Iraq during the Gulf War, and there are some doubts about even these engagements. The public and the United States Congress were misled by definitive statements of success issued by administration and Raytheon representatives during and after the war."[14]
Contract disputes
In October 1994, Raytheon paid $4 million to settle a U.S. government claim that it inflated a defense contract for antimissile radar.[15] The PAVE PAWS (Precision Acquisition Vehicle Entry Phased Array Warning System) system was designed to detect incoming submarine-launched ballistic missiles. The government claimed in a federal lawsuit that Raytheon inflated a contract to upgrade two of four PAVE PAWS sites by proposing to hire higher-skilled employees than were necessary for the job.
Just one year earlier, on October 14, 1993, Raytheon paid $3.7 million to settle allegations that it misled the U.S. Defense Department by overstating the labor costs involved in manufacturing Patriot missiles. "The recovery of this money is yet another warning to contractors that the Truth in Negotiations Act's information disclosure requirements will be strictly and sternly enforced," Frank Hunger, assistant attorney general, said in a statement.
Brazilian SIVAM project
Allegations of bribery were made against Raytheon in 1995 in connection with its efforts to win a 1.4 billion dollar radar contract from Brazil for the SIVAM project.[16] SIVAM, the acronym for "System for Vigilance over the Amazon," was a complex radar surveillance system for use monitoring the Amazon rainforest, allegedly to curb the trafficking of narcotics and to curb illegal logging or burning of the forest. Brazilian police wiretapped a telephone conversation between a special advisor to the Brazilian President Fernando Henrique Cardoso, and Raytheon's operative in Brazil, Jose Afonso Assumpcão. According to transcripts published in the Brazilian national weekly ''Isto É'', when Assumpcão told Gomes dos Santos that Brazilian Senator Gilberto Miranda might block the Raytheon contract, Gomes dos Santos responded, "Damn, did you already pay this guy?". Gomes dos Santos and Brazil's aviation minister resigned because of allegations that this conversation suggested that bribes were paid. Nonetheless, Raytheon ultimately was awarded the contract after lobbying by the administration of U.S. President Bill Clinton.
AGES lawsuit
In 1996 a corporation called AGES Group filed a lawsuit against Raytheon in a federal court in Alabama over a $450 million contract to service C-12 Huron and U-21 military aircraft.[17] The Boston Herald reported that AGES alleged that the security firm Wackenhut Corporation, hired by Raytheon, used video and audio surveillance to spy on a consulting firm hired by AGES to help it prepare its bid. AGES also alleged that stolen confidential pricing documents were turned over to Raytheon. Both Raytheon and AGES had been vying for the contract, which Raytheon had held for decades but which AGES won in 1996. On May 12, 1999, Reuters reported that Raytheon would pay $3 million to AGES Group and purchase $13 million worth of AGES aircraft parts to settle the AGES lawsuit. The settlement was exceptional in that the parties agreed that judgment would be entered against Raytheon, legally establishing the validity of AGES' allegations.
Securities litigation
In October 1999, Raytheon was the subject of a number of securities class action lawsuits alleging it had issued a series of materially false and misleading statements including overstating the company's 1997 and 1998 revenues, concealing cost overruns and inflating its financial results. The suits were brought in response to a massive drop in value of Raytheon's common stock as traded on the New York Stock Exchange. On Tuesday, October 12, 1999, Raytheon shares were trading at about 45% below the level at which they had been traded on October 11, 1999. The plunge in stock prices was triggered by a ''Wall Street Journal'' report that Raytheon was over cost or behind schedule on more than a dozen fixed-price defense contracts. This crash represented a loss of about $8 billion in market value in a single day. On May 13, 2004 Raytheon reported that it had reached a preliminary agreement to pay $410 million in cash and securities to settle a class-action lawsuit alleging it misled investors by not disclosing difficulties on various Pentagon and construction projects five years before.
September 11, 2001 attacks
Four Raytheon employees traveling on company business died in the terrorist attacks on September 11, 2001. They were:
★ American Airlines Flight 11
:
★ Peter Gay, 54, VP of Electronic Systems, who was on a special assignment at the El Segundo, California division office
:
★ Kenneth Waldie, 46, Senior Quality Control for Electronic Systems
:
★ David Kovalcin, 42, Senior Mechanical Engineer for Electronic Systems
★ American Airlines Flight 77
:
★ Stanley Hall, 68, Director of Electronic Warfare Program Management.
Unwritten rules
On April 24, 2006 in a statement released by Raytheon, CEO Swanson admitted to plagiarism in claiming authorship for his booklet, "Swanson's Unwritten Rules of Management," after a report by ''The New York Times''.[18] On May 2, 2006, Raytheon withdrew distribution of the book.[19] The following day, the company's board of directors announced that "In response to this matter, the Board has decided not to raise Mr. Swanson's salary above its 2005 level, and will reduce the amount of
restricted stock for which he is eligible in the coming year by 20 percent."[20]
NBC News allegation of U.S. Army favoritism
As of September 2006, an NBC News report of the Army's award of an anti-rocket propelled grenade (RPG) system raised questions about favoritism towards Raytheon.[21] Major General Sorenson, deputy army secretary for acquisition, disputed the NBC report in detail. The top Democrat on the Tactical Air and Land Forces Subcommittee, Neil Abercrombie of Hawaii as well as panel chair Curt Weldon of Pennsylvania strongly criticized NBC for what they saw as "shoddy" reporting.[22] The panel had also asked the General Accounting Office to investigate the case.
Editing of Wikipedia entry
On August 2007, Wikipedia Scanner (or WikiScanner), a web tool (developed by Virgil Griffith, a Caltech graduate student) that is capable of matching the source of changes on Wikipedia with companies' IP addresses, discovered that on October 26, 2005, a computer user (identified as ) on Raytheon's network edited the Wikipedia article on the company, deleting all information about the Patriot missile's performance in the Gulf War, a lawsuit from competitor AGES, as well as paragraphs describing a $910,000 fine for illegally obtaining classified military documents and a $4 million penalty for inflating a government contract.[23]
Corporate stewardship
Math and science education
MathMovesU Raytheon
★ In November 2005 Raytheon launched 'MathMovesU',[24] an educational initiative intended to make math and science more interesting and accessible for young people, funded by $1 million in annual grants.[25]
★ Raytheon has taken a role in promoting math and science education to develop future engineers. In 2004 the company announced a $850,000 grant to Tuskegee University.[26]
★ Raytheon is also a leading sponsor of the FIRST Robotics Program, both on the national and local scale.
Philanthropy
★ Raytheon employees contributed $8 million to the United Way of America in 2000.[27]
★ Raytheon Space & Airborne Systems has hosted the national JROTC drill team competition at its El Segundo, California facility for seven straight years.
★ In November 2006, Raytheon Integrated Defense Systems (IDS) was honored by Special Olympics Massachusetts (SOMA) for its continued support of the organization through funding and support of more than 700 volunteers in 2006.[28]
Workplace diversity
★ In 2005, Raytheon became the first aerospace and defense giant to add gender identity to its equal employment policy, protecting its transgender and transsexual employees.[29]
★ On October 26, 2006, Raytheon was recognized by U.S. Secretary of Labor Elaine Chao as a recipient of the 2006 New Freedom Initiative (NFI) Award for the company’s commitment to recruit, train, hire and promote individuals with disabilities.
References
1. Raytheon Co. (RTN) Yahoo! Finance
2. Defense News Top 100
3. New Raytheon Headquarters to Open Oct. 27 in Waltham, Mass. October 22 2003 PRNewswire.
4. Raytheon Australia. History. ''Raytheon Marketing Material''.
5. Otto J. Scott, The Creative Ordeal, (New York, Atheneum, 1974),16-32
6. PRT 2000 System Concept, "Design and Commercialization of the PRT 2000 Personal Rapid Transit System" by S.J.Gluck, R.Tauber and B.Schupp. University of Washington Web Server.
7. Raytheon PRT Prospects Dim but not Doomed. Peter Samuel. October, 1999.
8. Personal Rapid Transit (PRT) or Personal Automated Transport (PAT) Quicklinks. University of Washington Web Server.
9. Raytheon Announces Revolutionary New 'Cockpit' for Unmanned Aircraft - an Industry First Falls Church, Virgnia, Oct. 31, 2006. PRNewswire.
10. Raytheon targets nuclear smuggling: Firm sees profit in homeland security
11. Project on Government Oversight. Spring 2004 The Politics of Contracting. Raytheon.
12. NewsBank InfoWeb
13. Remarks to Raytheon Missile Systems Plant Employees in Andover, Massachusetts
14. Report 102-1086
15. United States Court of Appeals for the Federal Circuit RAYTHEON COMPANY (doing business as Raytheon Systems Company), Appellant, v. Thomas E. White, SECRETARY OF THE ARMY, Appellee. 01-1350
16. NewsBank InfoWeb -2
17. Raytheon Unit Settles Industrial-Spying Allegations Gregg Krupa
18. Raytheon Chairman & CEO Comments Regarding 'Unwritten Rules'
19. Raytheon halts distribution of controversial booklet by CEO
20. Statement of Board of Directors of Raytheon Company
21. MSNBC article
22. U.S. Army defends Raytheon contract amid storm
23. The Perils of Wiki PR, Andy Greenberg, 08.15.07
24. MathsMovesU
25. Raytheon (November 11, 2005). Raytheon Takes on New Assignment: Helping Kids Make the Grade in Math and Science. Press release.
26. Raytheon (September 14, 2004). Raytheon Announces 0K Grant to Tuskegee University. Press release.
27. Raytheon (July 24, 2000). Raytheon and its Employees Contribute Million to the United Way. Press release.
28. Raytheon (November 1, 2006). Raytheon Honored at Special Olympics Gala. Press release.
29. Raytheon (2005). [1]. Human Rights Campaign.
See also
★
★ List of United States defense contractors
External links
★ Raytheon Company
★ Raytheon Business Ethics and Compliance Home Page
★ Raytheon profile by CorpWatch
★ Corporate Profile by Raytheon Watch
★ "Greatness is Raytheon's target" — a case study by Paul V. Arnold, Noria Corporation, January 2006
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