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Boeing Completes its Work on the Final Standard Missile-3 Kinetic Warhead

ST. LOUIS, May 28, 2004 -- Boeing [NYSE:BA] shipped the fifth Initial Deployment Round Standard Missile-3 Kinetic Warhead (SM-3 KW) today, bringing the Missile Defense Agency one step closer to providing the nation with a sea-based defense against short-to medium-range ballistic missile threats.

"The SM-3 KW provides improved performance, lower cost, and an evolutionary path to meet future threats," said Debra Rub, vice president, Air & Missile Defense Systems, for Boeing. "The elements developed by Boeing will provide defense in all phases of flight: boost, midcourse, and terminal."

With the shipment of the SM-3 KW by Boeing to the Raytheon Company, the prime contractor on the program, the Missile Defense Agency is closer to achieving the administration's commitment to provide a sea-based missile defense capability to protect the United States, U.S. troops abroad and its allies beginning in the 2004-2005 timeframe.

Boeing has been teamed with Raytheon on the SM-3 program since 1996, and is under subcontract to build and integrate major subcomponents. Boeing is responsible for the kinetic warhead guidance unit, ejector, environmental testing and integration. In addition to SM-3 round integration, Raytheon provides the KW infrared seeker, signal processor and the final flight software integration.

In addition to its work on the Aegis Ballistic Missile Defense/SM-3 program, Boeing holds key roles in each element of the Ballistic Missile Defense System architecture. Boeing also leads the systems engineering and integration effort on the Missile Defense National Team.

"Boeing's shipment of the final Initial Deployment Round KW is a superb accomplishment, building upon the momentum created by Boeing and the rest of the Aegis BMD team apparent at last December's successful FM-6 flight test," said Rear Adm. K.K. Paige, Aegis Ballistic Missile Defense Program Director.

"The Missile Defense Agency is charged by the President to deploy an integrated ballistic missile defense system that provides U.S., deployed forces, allies, and friends with defense against ballistic missile threats of all ranges, in all regions, and in all phases of flight," continued Paige.

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 $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:
Michael Fanelli
Boeing Air Force Systems
(714) 762-2867
michael.a.fanelli@boeing.com

Kerry Gildea
Boeing Missile Defense Systems
(703) 414-6431
kerry.a.gildea@boeing.com



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