The following is a statement by
Harry Stonecipher, Boeing president and chief operating officer, on
FTC and EC approval of Boeing’s acquisition of Hughes Electronics
Corporation’s space and communications businesses:

“We are pleased that our acquisition of Hughes’ space and communications
businesses has received approval from both the European Commission and the
U.S. Federal Trade Commission.
We plan to close the purchase of Hughes Space
and Communications company, Electron Dynamics and Spectrolab from Hughes
Electronics Corporation on Oct. 6, 2000.

“We are acquiring a world class business — one that has tremendous
intellectual capital and business acumen in its people and leadership team.
Hughes’ knowledge of the space-based communications environment is
Boeing has an impressive space and communications portfolio with
a tremendous potential for growth.
With Hughes onboard, we will be stronger
and more prepared than ever to capitalize on the opportunities available in
the marketplace.

“The Hughes acquisition is a natural fit within Boeing and supports our
key business strategies of running healthy core businesses, leveraging core
strengths into new products and new services, and opening up new frontiers.”

Additional information:
The new entity will be operated as a wholly owned
subsidiary called Boeing Satellite Systems.
Under agreements with the FTC and
the EC, Boeing will establish certain firewalls to ensure both the
confidentiality of launch vehicle information that that is provided to
Boeing Satellite Systems by various launch service providers and satellite
information provided by various manufacturers to Boeing’s Expendable Launch
Systems unit.