Firm Contract Value from The Boeing Company Now Totals $450 Million

Orbital Sciences
Corporation announced today that it has received approximately $50
million in incremental modifications to its contract from The Boeing Company
to develop, test and produce interceptor boost vehicles for the
U.S. Department of Defense/Missile Defense Agency’s (MDA) Ground-based
Midcourse Defense (GMD) System. The company stated that its firm contract
value has risen to over $450 million since the original contract was awarded
in early 2002. The term of the firm contract extends through 2007. In
addition to the firm portion of the contract, Orbital has optional orders for
production of approximately 50 interceptor boosters estimated at about $535
million. As currently planned, the term of the optional portion of the
contract would begin in 2004 and run through the end of 2009. With the
additional firm contract value, the total potential value of Orbital’s
contract now stands at approximately $1 billion.

The additional $50 million scope of work supports a series of nine
demonstration and test flights of Orbital’s GMD boost vehicle beginning in
early 2003. The test flights include participation in seven GMD Integrated
Flight Test (IFT) exercises into 2006. The IFT development test program
demonstrates the ability of GMD System elements to work together as an
integrated system. As designed, MDA’s RDT&E testbed complex in Fort Greely,
Alaska will expand to enhance overall test infrastructure and system
maturation.

“We are pleased with how the GMD boost vehicle program is progressing,
which is on a very ‘fast track’ schedule leading to the first demonstration
launch in early 2003,” said Mr. Ronald J. Grabe, Orbital’s Executive Vice
President and General Manager of its Launch Systems Group. “Many key
electrical components have completed qualification and acceptance testing,
assembly of major subsystems is underway and solid rocket motors have been
delivered to our missile assembly facility at Vandenberg Air Force Base,
California.”

Orbital is one of the world’s leading developers and manufacturers of
affordable space systems for commercial, civil government and military
customers. The company’s primary products include low-orbit, geosynchronous
and planetary spacecraft for communications, scientific and remote sensing
missions; ground- and air-launched rockets that deliver satellites into orbit;
and missile defense boosters that are used as target and interceptor vehicles.
Orbital also offers space-related technical services to government agencies
and develops and builds satellite-based transportation management systems for
public transit and public works agencies, as well as private vehicle fleet
operators.

More information about Orbital can be found at http://www.orbital.com