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Homeland Security

Boeing Team Selected for Program to Boost Cargo Container Security

LE BOURGET, France, June 17, 2003 -- The Boeing Company (NYSE: BA) has been awarded a contract to demonstrate cargo container security systems for Operation Safe Commerce, a Department of Homeland Security initiative aimed at improving security of cargo entering and departing ports in the United States. The contract for the Port of Los Angeles/Long Beach, announced at the Paris Air Show, is valued at more than $4.2 million.

"We're pleased to have this opportunity to demonstrate to the Department of Homeland Security our integrated and comprehensive solution to securing the cargo container supply chain," said Rick Stephens, vice president and general manager of Boeing Homeland Security & Services. "Our solution provides for the secure and efficient movement of containerized goods on a global scale -- from the manufacturer to a port of entry and on to retailers."

The pilot program's objective is to accelerate development and deployment of emerging technology to monitor the movement and ensure the integrity of containers through the entire supply chain.

The Boeing team is composed of the "best in the business" that includes:

* ADT Security Services, Inc., Boca Raton, Fla.: Develops security technology, systems and services for industry and governments.
* Global Marine Security Systems Company, New York, N.Y: A provider of global maritime security, transportation and logistics services.
* Iridium Satellite LLC, Arlington, Va.: A provider of global satellite wireless communications services.
* Parsons Commercial Technology Group, Inc., Charlotte, N.C.: An international large-scale project planning, engineering and construction company.

As part of Boeing's network-enabled architecture, the proposed system will integrate real-time, in-transit container information with existing and future networks and databases. This will allow for threat detection and mitigation for Government users and provide enhanced supply chain visibility for private enterprise. Supply chain security will be enhanced by strategically applying improved processes and commercially available technologies to increase system efficiency and deliver significant reductions in supply chain losses.

The ability to monitor the movement of cargo in transit will significantly reduce security vulnerability, as well as cargo losses. Improved visibility and integrity will greatly enhance the performance of supply chain management systems via real-time information access and flow between supply chain participants. Increased supply chain visibility will enable improvements in efficiency, such as enhanced inventory and asset management, and content assurance during all modes of transport.

Homeland Security & Services, a business unit of Boeing Integrated Defense Systems, is integrating numerous advanced technologies to create a highly sophisticated and multi-layered system that analyzes intelligence, detects and prevents terrorist threats, protects critical infrastructure and coordinates a response in the event of an emergency.

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 $25 billion business. It is a leading provider of intelligence, surveillance and reconnaissance; a leader in the emerging homeland security market; 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:
Fernando Vivanco
562-797-4582
33 1 41 57 55 07 (week of announcement)

Kirsti Dunn
202-264-7522

Walt Rice
314-234-2149



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