Boeing JTRS Cluster 1 Team Delivers Proposal to U.S. Army; Team Ready to Meet Challenges Set Forth by Department of Defense

The Boeing Company [NYSE: BA] Joint Tactical Radio System (JTRS) Cluster 1 team announced today the delivery of a proposal to the U.S. Army for a contract to build the first truly software-defined radio communications system for the Department of Defense. If fully executed, the baseline plus options could potentially total more than $2 billion.

Boeing, as prime system integrator, has formed a strong, cooperative partnership with industry experts in radio development and manufacturing, as well as in airborne, space and ground platform integration to bring an innovative, best-value systems solution to the warfighter. Principal team members include TRW Tactical Systems Division of Carson, Calif.; Rockwell Collins of Cedar Rapids, Iowa; and BAE SYSTEMS CNI Division of Wayne, N.J. (a division of the BAE SYSTEMS North America Group), who is partnered with Harris Corporation of Rochester, N.Y.

"The need for fast, reliable exchange of situational awareness and command and control information is vitally important to ensure the mission success and safety of America's Armed Forces as they protect and preserve our national interests," said Allen Ashby, vice president and general manager of Boeing's Battle Management, Command, Control and Communications (BMC3) & Strategic Systems business segment. "In response to that need, Boeing has assembled a world-class team that is fully committed to JTRS program and Army transformation success, and has the know-how, tactical experience and advance technology to make the JTRS vision a reality."

The team's proven capability in large-scale systems integration and demonstrated success at working together on complex programs has resulted in an innovative system solution that offers the best technology within cost, and an architecture that enables future growth and meets operational readiness requirements.

The JTRS is a family of software programmable tactical radios that provide commanders with voice, data and video capability. The state-of-the-art radios are based on a common Software Communication Architecture that ensures interoperability with legacy systems and simplifies future technology insertions. The program is a multi-phased effort managed by the JTRS Joint Program Office for the services, with extensive support from industry.

Boeing is leading one of two industry teams competing for the first of several clusters of JTRS software-defined radios. This initial procurement, referred to as Cluster 1, will be led by the Army. The Army's Communications-Electronics Command (CECOM) is expected to award a multi-year contract in March 2002 for system design and development. One winner will be selected as prime and will have responsibility for the design and integration of the JTRS architecture, the integration of legacy waveforms, development of a new wideband network waveform, and the qualification of two hardware production sources for up to 10,000 vehicular and airborne systems through Low-Rate Initial Production. Future production quantities generated by the Cluster 1 program are expected to exceed 100,000 units.

As prime contractor, Boeing will be responsible for the overall systems design, systems engineering, communications integration and program management. TRW will support Boeing in the systems engineering effort and will be responsible for the integration of ground platforms. Rockwell Collins and BAE SYSTEMS, with support from Harris Corporation, will have responsibility for developing the ground vehicular and airborne systems for the Army and U.S. Marine Corps, and the Tactical Air Control Party communications system for the U.S. Air Force. The Boeing team's JTRS Cluster 1 program activity will be managed out of the BMC3 and Strategic Systems business segment in Anaheim, Calif.

Boeing, a premier architect and integrator of large-scale systems, offers a low-risk approach by implementing proven systems engineering and management processes from complex programs such as Ground-based Midcourse Defense, Airborne Warning and Control System and Airborne Early Warning & Control. Boeing also has expertise as the architect and integrator of several tactical communications programs such as the Combat Survivor Evader Locator and Grenadier Beyond Line-of-Sight Reporting and Tracking, and is the developer, manufacturer and integrator of numerous tactical platforms, such as the AH-64D Apache Longbow.

"The end result of the team's collective dedication and effort is a comprehensive proposal for a next-generation communications system that will provide the robust communications network absolutely vital to joint and coalition warfighters in the digital battlespace of the future," said Ashby.

The Boeing Company is the world's leading aerospace company, with its heritage mirroring the history of flight. It is the largest manufacturer of satellites, commercial jetliners, and military aircraft. The company is also a global market leader in missile defense, human space flight, and launch services. Chicago-based Boeing has an extensive global reach with customers in 145 countries

For further information:
Mary McAdam
(714) 762-0178
Anne Eisele
(562) 797-1022