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Washington Post article. The company was described as an organization operating in
the "black world" - an area so secret that employees are not permitted by law to
discuss anything about their work except with those individuals who have an official
"need to know" classification. Of the company's annual sales, 85 percent was for
classified work, with an estimated $800 million involved in projects so sensitive
that the government denies that the projects even exist. The story went on to paint a
picture of an organization which thrives on contracts issued by the CIA, NSA and
military intelligence organizations.141
In the CBS, 60 Minutes segment, the secret relationship with the United
States government was illustrated by describing one of E-Systems more public law
suits. In the course of the law suit, a court order was issued which forbad the disclosure
of E-Systems' classified relationship to the United States government. The most
unusual part of the order was that none of the parties to the suit could even disclose
that the order existed or that the government had even sought such an order. Even
more revealing about this shadowy organization was that no one was allowed to have
a copy of the document. They could only view it for a few moments in the United
States Attorney's office. They were not allowed to take notes or in any way record
their comments about the order, and they were forbidden from even talking about the
existence of the document, under threat of incarceration. The order was so secret that
even the judge could not have a copy of it, and could only view it upon special
request. The secrecy of the document was appealed all the way to the United States
Supreme Court where a ruling was issued which allowed the parties to talk about the
order. Even now, nobody can get a copy of the document itself. 142
According to the E-Systems 1994 annual report to stockholders, their
business mission is clear. "Our core business activities continue to be focused on
intelligence, reconnaissance and surveillance." In the report they describe a number
of their most promising prospects for increases in profits. They also describe the
purchase of APTI from ARCO, although they do not indicate the amount paid. 143
The technologies that E-Systems developed are awesome. They include
systems for law enforcement which can intercept faxed messages, telephone calls,
modem transfers, and video transmissions on a single system in eavesdropping by
the government. Their Global Positioning System (GPS) technologies (satellite
based) can locate objects anywhere in the world within one foot of the object's actual
location. The refitting of aircraft for border monitoring and defense purposes are also
disclosed in the report. The company's operations are mostly hidden, and the annual
reports seem to be one of the few sources for information on the organization. 144
As this book was in its final days of writing, another twist to the corporate
tangle occurred. Raytheon Corporation bought out E-Systems for $2.3 billion. 145
141 "E-Systems", 60 Minutes, CBS News, N.Y, N.Y,, February 26,1995.
142 Ibid.
143 "E-Systems, Inc. Nineteen ninety-four Annual Report to Stockholders"; March 10,1995.
144 Ibid.
145 "Raytheon to Acquire E-Systems for $64 a Share, or $2.3 Billion; Offer is 41% Premium Over
Friday's Close; Rival Bid is Unlikely" by Steven Lipin and Jeff Cote, The Wall Street Journal, April
3, 1995, pges A1, A3 and A16.