In partnership with the U.S.
Air Force, Boeing will develop a system design and demonstrate
critical technologies for a secure, high-capacity global communications
network serving the U.S. Department of Defense, NASA and the intelligence
community.

Under the $472 million contract awarded by the Air Force Space and Missile
Systems Center at Los Angeles Air Force Base, Calif., the best-of-industry
team led by Boeing will conduct risk reduction and system definition for the
Transformational Communications MILSATCOM Space Segment. The contract, which
extends through 2006, supports the government’s network-centric operations
vision. This effort provides critical technology maturation for the system,
which is slated for launch beginning in 2011 after a selection of a single
contractor in 2006.

“Future warfare will be dominated by the control of information. A
successful communications, command-and-control and decision making environment
will depend on the exploitation of knowledge, and speed of action based on
that knowledge,” said George Muellner, senior vice president and general
manager, Boeing Air Force Systems. “Clearly, Boeing has positioned itself as a
leader in the transformational communications arena and this award presents an
opportunity for our industry team to partner with the Air Force to advance its
transformational vision.”

The Transformational Communications MILSATCOM Space Segment incorporates
laser communications, next-generation processors and routers, internet
protocol, information assurance, network management, and other advanced
technologies into an architecture that is compatible with future and legacy
space and ground network systems. The system provides survivable, strategic
communications services as well as new capabilities such as communications on
the move for tactical users, and enhanced airborne intelligence, surveillance
and reconnaissance connectivity.

Boeing and its industry team members are contributing innovations on other
transformational DoD systems such as Future Combat Systems, Joint Tactical
Radio System, and Family of Advanced Beyond Line-of-Sight Terminals. The
Boeing team is integrating the expertise gained from these programs directly
into this program.

System design will be conducted at Boeing Satellite Systems (BSS), El
Segundo, Calif. The Boeing team for the effort includes Raytheon, Ball
Aerospace, General Dynamics, IBM, L-3 Communications, Cisco Systems, BBN
Technologies, Hughes Network Systems, Lucent Technologies, Harris, EMS
Technologies, and Alpha Informatics.

A unit of The Boeing Company, Integrated Defense Systems is one of the
world’s largest space and defense businesses. Headquartered in St. Louis,
Boeing Integrated Defense Systems is a $25 billion business. It provides
systems solutions to its global military, government and commercial customers.
It is a leading provider of intelligence, surveillance and reconnaissance; the
world’s largest military aircraft manufacturer; the world’s largest satellite
manufacturer and a leading provider of space-based communications; the primary
systems integrator for U.S. missile defense; NASA’s largest contractor; and a
global leader in launch services.