Boeing [NYSE: BA] will join
the Lockheed Martin-General Dynamics team competing for the Mobile
User Objective System, or MUOS, a multi-satellite system that will
improve ground communications for U.S. forces on the move.

Selection of the final design for the MUOS system is scheduled for
2004, with initial operational capability expected in early 2008 and
full capability by 2013. The U.S. Navy Space and Naval Warfare Systems
Command, located in San Diego, Calif, manages the program.

Satellite communications provide a critical link in the integrated
battlespace, the global network of new and legacy platforms and communications
systems used by the armed services and intelligence community. MUOS
is the next-generation system that will eventually replace the U.S.
Navy’s UHF Follow-On satellite fleet.

“Boeing and Lockheed Martin have worked together to support
the Navy under the UHF Follow-On program for 14 years. This successful
relationship provides a solid foundation to this MUOS team,”
said Dave Ryan, vice president and general manager of Boeing Satellite
Systems. “The ability to provide U.S. and coalition forces with
real-time information is critical, and the MUOS system will make tremendous
strides in improving communication to those who make life-and-death
decisions as they protect the peace and defend a nation.”

The U.S. Navy contracted with Boeing for 11 UHF Follow-On satellites.
Boeing Satellite Systems, the satellite-manufacturing arm of Boeing
Integrated Defense Systems, has delivered 10 of the 11 satellites
and is currently building the eleventh spacecraft. The satellites
are launched aboard Atlas launch vehicles built by Lockheed Martin.

A unit of The Boeing Company, Boeing 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.