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Boeing Awarded C-130 Aircrew Training System AMP Modification Contract

ST. LOUIS, Aug. 24, 2006 -- The Boeing Company [NYSE: BA] has received a U.S. Air Force contract to begin modifying the C-130 Aircrew Training System as part of the C-130 Avionics Modernization Program (AMP).

The undefinitized contract, with a value not to exceed $56.3 million, includes the modification of the first simulator and other training devices in preparation for the delivery of C-130 AMP aircraft. A team consisting of Boeing, CAE and Lockheed Martin will design, develop, install and test the training system modification. The Air Force plans to field the first C-130 AMP aircraft in 2009.

"The first simulator will be installed at the C-130 Flying Training Unit at Little Rock Air Force Base in Arkansas," said Mike Harris, vice president and C-130 program manager for Boeing. "This contract demonstrates the confidence the Air Force has in Boeing to complete the C-130 AMP aircraft modification and deliver the aircraft into the hands of the warfighters."

Under C-130 AMP, Boeing is developing a major upgrade to most Air Force C-130 aircraft. The upgrade will replace the old "round dial" instruments with state-of-the-art "glass cockpit" displays, including a heads-up display, or HUD, for pilots. AMP will bring the C-130 into compliance with current navigation and safety requirements, standardize the avionics across the C-130 fleet, improve reliability, eliminate the requirement for a navigator in most of the aircraft and reduce aircraft life cycle costs.

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 $30.8 billion business. It provides network-centric system 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; a foremost developer of advanced concepts and technologies; 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 sustainment solutions and launch services.

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Contact Info:
Madonna Walsh
office: (314) 234-1362
mobile: (314) 705-0717
madonna.a.walsh@boeing.com

Didi VanNierop
office: (210) 932-6640
deborah.a.vannierop@boeing.com



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