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Air Force Awards Boeing $172.3 Million for Two GPS Satellite Contract Options

ST. LOUIS, Jan. 25, 2005 -- The U.S. Air Force awarded Boeing [BA: NYSE:] two GPS IIF contract options valued at $172.3 million.

"These award options indicate exceptional customer confidence in our work on the GPS program, "said John Fuller, vice president for Boeing Air Force Space Systems. "Last December one of our GPS II satellites completed its 15 th year on orbit, which is well beyond its 7.5 year design life. This is the type of program execution and performance the customer wants and that we plan to deliver."

The first award is a $143.9 million contract modification to the existing Navstar Global Positioning System (GPS) Block IIF contract that exercises the option to begin production of three satellites, Space Vehicles (SV) 07 through 09. These satellites will be completed by June 2008.

A second contract for $28.4 million exercises an option for long-lead hardware for the production of an additional three GPS IIF satellites, SV-10 through 12. The first three GPS IIF spacecraft currently are in various stages of assembly, integration and test at Boeing Satellite Systems in El Segundo , Calif.

The GPS IIF satellites are designed for flexibility and growth, have improved anti-

jam capability and secure operational military codes. Additionally, the IIF satellites built under this contract option will enable the Air Force to sustain the overall GPS constellation at peak performance to support global military needs. The first GPS IIF launch is scheduled for 2007.

The Space and Missile Systems Center manages the GPS program through a joint program office at Los Angeles Air Force Base, Calif.

A unit of The Boeing Company, Integrated Defense Systems is one of the world's largest space and defense businesses. Headquartered in St. Louis , Boeing Integrated Defense Systems is a $27 billion business. It provides network-centric systems solutions to its global military, government and commercial customers. It is a leading provider of intelligence, surveillance and reconnaissance systems; 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 and Department of Homeland Security; NASA's largest contractor; and a global leader in launch services.

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Contact Info:
Erik Simonsen
The Boeing Company
562-496-5692
erik.simonsen@boeing.com

Robert Villanueva
The Boeing Company
714-372-2089
robert.s.villanueva@boeing.com



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