Boeing [NYSE: BA]
officials announced today that the company is consolidating all Delta
launch vehicle manufacturing and assembly in Decatur, Ala.

Beginning this summer, Delta launch vehicle assembly now done at
its Pueblo, Colo., facility will transfer to the company’s Decatur
facility where Delta IV production and testing is done. The consolidation
should be completed in mid-2004.

"Bringing together Delta assembly work allows us greater operating
efficiencies and enhances our ability to provide affordable, high-quality
launch services," said Will Trafton, vice president and general
manager of Expendable Launch Systems for Boeing Integrated Defense
Systems. "Our facility in Decatur is the world’s newest and most
state-of-the-art rocket plant. Consolidating production and assembly
operations will give us the flexibility to respond to any further
changes in our market.

"This decision in no way reflects on the Pueblo team or the
community," Trafton noted. "Our Pueblo team does outstanding
work, and we plan to help employees displaced by this consolidation
to search for other jobs both within and outside of Boeing."

About 250 people currently work at the Boeing-Pueblo facility. Approximately
160 of the jobs there will transfer to Decatur. Where appropriate,
the people who currently hold those jobs will be offered the opportunity
to transfer with them. A small workforce will remain in Pueblo through
2007 to support storage of Delta II launch vehicles for the U.S. Air Force.

As part of Boeing’s commitment to assisting people affected by this
announcement, an outplacement service is being established to provide
resume writing, career counseling, and interviewing assistance. Boeing
also will work with local and regional businesses to set up job fairs.

"The Pueblo community has been very supportive, and we have
been privileged to have such capable and dedicated employees on our
team," Trafton said. "As we move through this transition,
we intend to meet our customer commitments and keep our Pueblo team,
Colorado state and Pueblo community leaders, and our customers informed
of our activities."

More than 2,100 Boeing employees work in Colorado on a variety of
defense and commercial aerospace technologies.

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.

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Contacts:
Boeing IDS
Larry Salazar
(714) 372-4734

Colorado
Madonna Walsh
(714) 272-1019

Alabama
Linda James
(256) 461-3101