Boeing

McDonnell Douglas Helicopter Company, an indirect subsidiary of The Boeing Company, and MD Helicopters Holding, Inc., an indirect subsidiary of RDM Holding, Inc., have completed an agreement on an asset purchase of the Boeing MD 500, MD 600N and MD Explorer series of light commercial helicopter product lines.

The sale, which has been approved by the U.S. Federal Trade Commission, was finalized today. The sale price was not disclosed. MD Helicopters will make its public debut on Sunday, Feb. 21, in Dallas during Heli-Expo '99, the rotorcraft industry's largest annual gathering.

MD Helicopters is operating initially from existing Boeing facilities at Mesa's Falcon Field Airport. The company said it would construct new local facilities at a later date. Boeing will provide technical and engineering support under contract to MD Helicopters.

RDM, an industrial company with aerospace activities, also builds submarines and other defense vehicles. It is a subcontractor to Boeing for landing gear and fuselage assemblies for Apache helicopters.

Included in the sale are the MD 500E and MD 530F single-engine helicopters with conventional tail rotors, the MD 520N and MD 600N single-engine helicopters with the Boeing exclusive NOTAR® no tail rotor system for anti-torque and directional control, and the MD Explorer series of twin-engine, eight-place helicopters.

Boeing will retain ownership of NOTAR® technology, but MD Helicopters will have a license to use the technology on existing and future aircraft. NOTAR® system-equipped helicopters are the quietest and safest helicopters ever produced. MD Helicopters will continue to produce the single- and twin-engine helicopters in Mesa and will assume responsibility for delivery of aircraft currently on order.

More information about MD Helicopters is available on the web at www.mdhelicopters.com.

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