ST LOUIS, June 23, 2003 – Boeing [NYSE: BA] announced today that in
partnership with the U.S. Air Force, it has recently completed the
Integrated Baseline Review, a significant Global Positioning System (GPS)
control segment milestone.

"The control segment is vital to the continuous operation of the GPS
constellation," said Mike Rizzo, director of Navigation Systems for Boeing
Air Force Systems. "The Integrated Baseline Review milestone confirms that
Boeing is leading a robust, stable and executable program."

Boeing is responsible for the development of the new GPS operational control
segment, which will include a distributed architecture, and extensive use of
modernized hardware and software. This will facilitate additional support
for the modernization program for both the GPS IIR and IIF series of
satellites. Additionally, Boeing is responsible for sustainment of the
existing operational control segment, monitor station, ground antenna
upgrades and launch anomaly resolution systems.

Established by the Air Force in 1999, the GPS Control Segment, sometimes
referred to as the Single Prime Initiative, is led by Boeing and supported
by two key teammates, Lockheed Martin and the Harris Corporation.
Modernization of the entire GPS ground system architecture is designed to
reduce operator workload and operational costs. In addition, proactive
activities initiated by Boeing, have allowed the restructuring of elements
designed to mitigate risks for the critical first IIF launch, now slated for

Under a contract awarded in September 2002, Boeing is currently building the
first three GPS IIF satellites, with a potential total of up to 12
satellites. Designed for flexibility and growth, the IIF satellites will
provide new capabilities, including including improved anti-jam, increased
accuracy, higher integrity and critical secure Operational Military codes.

The GPS program is managed by a Joint Program Office at the U.S. Air Force’s
Space and Missile Systems Center, Los Angeles Air Force Base, Calif., and by
Boeing Air Force Systems, Long Beach, Calif., a business unit of Boeing
Integrated Defense Systems

A unit of The Boeing Company, Integrated Defense Systems is one 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.