SEAL BEACH, Ca., April 18, 2002 – The Boeing Satellite Systems unit of
Boeing Space and Communications today announced phase two of a streamlining
effort that it initially announced on Feb. 21, 2002. The streamlining could
include up to 1,300 job reductions by year-end, depending on commercial
satellite market conditions. Boeing Space and Communications is a unit of
The Boeing Company (NYSE:BA).

In a speech to employees this morning, Randy Brinkley, president of Boeing
Satellite Systems (BSS), said: "When we announced our restructuring in
February, we said that there was a potential for further reductions this
year depending on business conditions. I am extremely disappointed to report
that the commercial satellite market has continued to soften, and that we
will have to further reduce our workforce and overall cost structure to meet
these market conditions. However, it is critical that we take these steps
now to size our business for the current difficult market and to restructure
for long-term success."

Today’s announcement includes approximately 800 job reductions by July, and
the potential for 500 more by year-end depending on market conditions. To
limit the actual number of layoffs, Boeing Space and Communications is
making a major effort to match the skills of as many of the affected
employees as possible with the 750 current job openings at other Boeing
Southern California locations.

Boeing has begun its internal employee redeployment program, "Operation
Resume," which has included internal job fairs and personal assistance to
match employee skills with these openings. Boeing also held an initial
external job fair with 26 other Southern California companies on April 12.
Additional job fairs and redeployment activities are planned during the next
several months to assist the impacted employees. Brinkley committed to the
affected employees that, "BSS and Boeing will continue to make every effort
to assist in employee redeployment within and outside of Boeing."

Looking to the future Brinkley added, "Boeing is committed to our satellite
business and we are confident that the commercial satellite market will
recover over the next year. Meanwhile, the government satellite market has
seen a recent upturn, and we see major growth opportunities in the 2003-2005
timeframe. Unfortunately, that new business isn’t near enough to get us
through this difficult interim period."

While there remains the potential for additional reductions by year-end
depending on business conditions, major new business pursuits by other
Boeing Southern California sites could reduce the impact of any such cuts by
providing BSS employees new employment opportunities. Approximately 500 new
openings are projected for major program pursuits in Seal Beach and Anaheim,
Calif., in the next six months.

Boeing Space and Communications (S&C), headquartered in Seal Beach, Calif.,
is the world’s largest space and communications company. A unit of The
Boeing Company, S&C provides integrated solutions in launch services, human
space flight and exploration, missile defense, and information and
communications. It is NASA’s largest contractor; a leading provider of
space-based communications; the primary systems integrator for U.S. missile
defense; and a leading provider of intelligence, surveillance and
reconnaissance. The global enterprise has customers worldwide and
manufacturing operations throughout the United States and Australia.


George Torres (El Segundo)

310 364-5777