Boeing Air Traffic Management Leads Team to Pursue FAA Traffic Flow Management Modernization Program

MCLEAN, Va., July 1, 2003 -- The Boeing Company (NYSE: BA) announced today that its Air Traffic Management business unit has formed a team that has responded to a screening information request (SIR) released by the Federal Aviation Administration. The FAA is seeking bidders to design, produce and implement a new, fully integrated air traffic flow system that will maximize use of the capacity of the National Airspace System.

The current traffic flow management system has evolved over time from a number of subsystems and tools that are not fully interoperable. In addition, the constraints in capacity, performance and operational requirements the system now faces raise serious concerns at the FAA and among industry stakeholders about the overall future viability of the system.

The initial SIR, the first step in a two-step selection process, requests information about the bidder's technical capabilities regarding traffic flow management. The members of the Boeing-led team and the capabilities they bring to the effort to modernize the air traffic flow system are:

* The Boeing Company -- extensive experience with integration of large-scale systems and development of open-system architectures, along with advanced modeling and simulation tools such as the Total Airport and Airspace Modeller (TAAM), the National Flow Model (NFM) and the Regional Flow Model (RFM)

* Raytheon Inc. -- proven expertise in the design, development, integration, testing, deployment and support of FAA large-scale systems, including Integrated Terminal Weather System (ITWS), Standard Terminal Automation Replacement System (STARS) and Wide Area Augmentation System (WAAS)

* Metron Aviation Inc. -- developer and maintainer of collaborative decision-making and other tools used by the FAA, including core tools used to model and implement traffic management initiatives within the Enhanced Traffic Management System (ETMS), such as Flight Schedule Monitor (FSM)

* KENROB -- system administrator for the FAA's ETMS, including design, development, process improvement, and software maintenance for tools such as the fly.faa.gov website, the Operational Information System (OIS), and ETMS WatchDog, which is used to monitor each TFM site's communications status, software revision level and data feed status

* RLM Software -- domain knowledge and experience in current systems, including development and on-going support of the ETMS communications infrastructure, which provides and monitors data transfer across systems and applications

* WSI Corporation -- provider of weather data products and systems to the ETMS, developer of software to supply real-time weather data, imagery and value added products to the FAA, other government agencies, general aviation and 80% of the top U.S. airlines.

The Boeing Team capability statement was submitted to the FAA on June 25. The FAA expects to announce a down-selection decision in August, and to release the second SIR in late August or early September. The contract is currently expected to be awarded in June 2004.

Boeing established its Air Traffic Management unit in November 2000 to dramatically improve air traffic systems throughout the world. Its aims are to make flying even safer and more secure, significantly reduce delays, congestion and environmental impact, keep aviation affordable and accessible for commercial, military, business and general aviation users, and enable seamless global aviation operations.

Forward-Looking Information Is Subject to Risk and Uncertainty Certain statements in this release contain "forward-looking" information that involves risk and uncertainty, including projections for new business and new business opportunities, compliance with delivery schedules, current and future markets for the Company's products, and decisions regarding production of Company products and offering of Company services. This forward-looking information is based upon a number of assumptions including assumptions regarding current and future demand for the Company's products and services; internal performance; product performance; customer financing; customer, supplier and subcontractor performance; supplier contract negotiations; teaming arrangements; government policies and actions; and regulatory approvals. Actual future results and trends may differ materially depending on a variety of factors, including the Company's successful execution of internal performance plans, including continued research and development, production rate increases and decreases, timing of product deliveries and launches, supplier contract negotiations, successful teaming arrangements, acceptance of new products and services, product performance risks, the cyclical nature of some of the Company's businesses; volatility of the market for certain products and services, actions by regulatory agencies, other regulatory uncertainties, collective bargaining labor disputes; performance issues with key suppliers, subcontractors and customers; governmental export and import policies; factors that result in significant and prolonged disruption to air travel worldwide; global trade policies; worldwide political stability and economic conditions; the outcome of political and legal processes, including uncertainty regarding government funding of certain programs; termination of government contracts due to unilateral government action or failure to perform; legal, financial and governmental risks related to international transactions; legal proceedings; and other economic, political and technological risks and uncertainties. Additional information regarding these factors is contained in the Company's SEC filings, including, without limitation, the Company's Annual Report on Form 10-K for the year ended 2002 and the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2003.

SOURCE The Boeing Company

Web Site: http://www.boeing.com/atm