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Boeing Team Wins $3.89 Billion Multi-Mission Maritime Aircraft Program

ST. LOUIS, May 14, 2004 -- The U.S. Navy has awarded the Boeing [NYSE: BA]-led industry team a $3.89 billion contract to build the Multi-mission Maritime Aircraft (MMA). The total program acquisition value is estimated at about $20 billion for 108 aircraft.

The Boeing-led team, which includes CFM International, Northrop Grumman [NYSE: NOC], Raytheon [NYSE: RTN], and Smiths Aerospace [LSE: SMIN.L] will produce seven test aircraft during the program's System Development and Demonstration (SDD) phase. Plans call for up to 108 aircraft to be purchased by the Navy to replace its aging fleet of 223 P-3 aircraft.

"The 737 MMA will play a critical role in the future of maritime warfare by providing the U.S. with dominance in anti-submarine and anti-surface warfare as well as reconnaissance and surveillance missions," said Jim Albaugh, president and Chief Executive Officer of Boeing Integrated Defense Systems. "As soon as the the first 737 MMA aircraft are delivered to the Navy our nation's naval forces will have a dramatic increase in capability and reliability to take them well into the 21st century."

"For each of our team members and thousands of employees in 37 states where the work will be performed, the selection of the Boeing team means future jobs and economic stability," Albaugh said. The MMA program will employ about 1,600 people at IDS facilities in St. Louis, Seattle and Patuxent River, Md.

"The Navy looks forward to starting the MMA development effort," said James Lackey, MMA Deputy Program Manager. "Working as a seamless government and industry team, we are eager to successfully design and develop the MMA on schedule and on cost."

The CFM56-7 engines that will power the Boeing 737 MMA are produced by CFM International, a 50/50 joint company of Snecma Moteurs and General Electric Company. This is the same engine that powers the Boeing 737 Airborne Early Warning & Control aircraft, as well as the Navy's C-40 transport aircraft. The two CFM56-7B27A engines will each provide 27,300 pounds of takeoff thrust and support MMA's demanding electrical output requirements to support flight deck and mission system operations. The CFM56-7 is one of the world's most reliable engines. More than 3,000 units have been delivered to date. This fleet of engines has logged more than 30 million flight hours while maintaining an industry-leading .002 in-flight shut down rate per 1,000 flight hours. This rate translates to one event every 500,000 flight hours.

Northrop Grumman's Baltimore-based Electronic Systems sector will provide the electro-optical/infrared (EO/IR) sensor, the directional infrared countermeasures system, and the electronic support measures system. Northrop Grumman's Mission Systems sector, based in Reston, Va., will develop data links for MMA. The company's Integrated Systems sector, based in El Segundo, Calif., will support the mission planning effort.

Raytheon will provide an upgraded APS-137 Maritime Surveillance Radar and Signals Intelligence (SIGINT) solutions. Raytheon is also offering its revolutionary GPS Anti-Jam, Integrated Friend or Foe, and Towed Decoy Self-Protection Suites, and the aircraft's Broadcast Info System (BIS) and secure UHF Satcom capability.

Smiths Aerospace supplies both the Flight Management and Stores Management systems on the Boeing 737 MMA. The Flight Management System provides a truly integrated open architecture that is CNS/ATM compliant along with an inherent growth path for upgrades. The Stores Management System provides a comprehensive system for the electronic control of integrated weapons management. This system is designed with standards to accommodate current and future precision weapons.

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 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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Contact Info:
Ellen LeMond-Holman
Boeing Communications
(314) 232-6496
ellen.j.lemond-holman@boeing.com

Douglas P. Cantwell
Northrop Grumman
(410) 765-9332
douglas.cantwell@ngc.com

Sabrina Steele
Raytheon
(781) 522 -5127
sksteele@raytheon.com

Jennifer S. Villarreal
Smiths Aerospace
(616) 241-8643
jennifer.villarreal@smiths-aerospace.com

Richard Kennedy
CFM International
(513) 243-3372
cfm.media.relations@ae.ge.com

Jamie Jewell
CFM International
(513) 552-2790
cfm.media.relations@ae.ge.com

Madonna Walsh
Boeing Communications
(314) 234-1362
madonna.a.walsh@boeing.com



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