Satellite Systems (BSS), a unit of The Boeing Co. , has
received a contract modification authorizing the procurement of launch
services for UFO F-11.

The satellite currently under construction is the 11th in a series
of U.S. Navy UHF Follow-On (UFO) satellites the company has built
under a contract originally awarded in July 1988 and now valued at
approximately $2.1 billion.

Following its receipt of the contract modification, BSS has
exercised an option to award the launch of UFO F-11 to International
Launch Services (ILS), the selection of which was announced last year.
ILS previously launched the first 10 UFO spacecraft. UFO F-11 is
scheduled to launch in late 2003 aboard an Atlas IIIB launch vehicle.

“UHF Follow-On is an extremely important program to Boeing and to
the nation. With this selection of a launch services provider and a
recently held design review now complete, the program is on track and
moving steadily ahead,” said Randy Brinkley, president of Boeing
Satellite Systems, the satellite manufacturing arm of Boeing Space and

Boeing’s UFO customer is the Communications Satellite Program
Office at the Navy’s Space and Naval Warfare Systems Command (SPAWAR)
in San Diego. The UFO satellites replace the Fleet Satellite
Communications and BSS-built Leasat satellites that support the Navy’s
global communications network, Navy ships at sea, and a variety of
other U.S. military fixed and mobile terminals.

UFO F-11 will provide ultra-high frequency (UHF) and enhanced
extremely high frequency (EHF) communications.

Boeing Space and Communications is the world’s leading
manufacturer of commercial communications satellites, and is also a
major provider of space systems, satellites, and payloads for national
defense, science and environmental applications.

The Boeing Co. is the world’s leading aerospace company, with its
heritage mirroring the history of flight. It is the largest
manufacturer of satellites, commercial jetliners, and military
aircraft. The company is also a global market leader in missile
defense, human space flight, and launch services. Chicago-based Boeing
has an extensive global reach with customers in 145 countries.

Note to Editors: Photos of the UFO F-11 spacecraft are available
upon request. A high-resolution rendering of the satellite is posted
on the Boeing Satellite Systems Web site at: