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Boeing Plans 30-Percent Expansion to World's Largest Satellite Factory

EL SEGUNDO, Calif., Aug. 20, 2001 -- Boeing Satellite Systems (BSS), the world's leading satellite manufacturer, is expanding and remodeling its one-million-square-foot satellite factory to accommodate new business and the transfer of satellite manufacturing from other parts of Boeing. Within the existing factory, one-third of the one hundred thousand square foot high bay space for satellite integration and test will be expanded. Boeing Satellite Systems is a unit of The Boeing Company (NYSE: BA).

BSS, with a current satellite backlog valued at about $4.8 billion, has more than 38 satellites on-order and plans to add the manufacturing of 12 Block IIF Global Positioning Satellites (GPS), currently under contract to Boeing Space & Communications' Seal Beach facility. The schedule calls for manufacturing of the first satellite to begin in late 2002, with the contract running through 2008.

"In anticipation of GPS and other commercial and defense business, we are growing our factory by 30 percent," said Randy Brinkley, president of BSS. "Simultaneously, we will reconfigure the factory along Lean Manufacturing Practices to enhance our efficiency and competitiveness. These steps will allow us to be agile in our response to market demand and schedule commitments, not only with these new programs but also our continuing line of satellite models - the Boeing 702, 601 and 376 satellites."

In addition to the integration and test space, the expansion includes a containerization facility and an acoustic test facility. "We are also acquiring test equipment to support our new Ka-band programs, such as Spaceway, for which we are building three of the highest capacity satellites ever, and the Wideband Gapfiller System, which is the Department of Defense's next-generation communications system to aid all branches of the U.S. military," Brinkley added.

"We already have a significant backlog in place, coupled with unparalleled satellite experience," Brinkley said. "With innovative services, such as Boeing digital cinema, and the growing demand for broadband satellite systems and advances in digital signal processing satellites, we've got a strong future ahead of us."

Boeing is the world's leading manufacturer of communications satellites and a major provider of space systems, satellites, and payloads for national defense, science and environmental applications.

The Boeing Company is the largest aerospace company in the world and the United States' leading exporter. It is NASA's largest contractor and the largest manufacturer of commercial jetliners and military aircraft. The company's capabilities in aerospace also include rotorcraft, electronic and defense systems, missiles, rocket engines, launch vehicles, satellites, and advanced information and communication systems. The company has an extensive global reach with customers in 145 countries.

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Contact Info:
George Torres
(310) 364-5777