Boeing Receives Contract for PAC-3 Seeker Production

Boeing [NYSE: BA] has received a contract from Lockheed Martin [NYSE: LMT] for additional production of 159 PAC-3 Missile seekers to be manufactured between February 2005 and February 2006. The seekers will be built at the Boeing facility in Huntsville, Alabama. This work is in addition to the current contract for 100 seekers. Terms of the contract will not be disclosed.

"This increased production will directly contribute to improved force protection wherever PAC-3 is deployed," said Debra Rub, vice president, Boeing Air & Missile Defense Systems. The PAC-3 enhanced Patriot System proved itself invaluable in protecting American and ally soldiers and assets during Operation Iraqi Freedom."

The battle-proven PAC-3 Missile is a high velocity, hit-to-kill missile and is the newest addition to the Patriot family of missiles. The seeker detects and tracks the target during the terminal phase of an engagement. The seeker provides precision angle and angle rate data to the missile's on-board guidance system. Lockheed Martin is the prime contractor for the PAC-3 Missile Segment upgrade to the Patriot air defense system.

Work on the PAC-3 program at the Boeing Huntsville facility includes production, assembly, integration and testing of the seeker. The PAC-3 program office, located in Anaheim, Calif., has program management and design responsibility for the seeker.

The Boeing Company is the largest aerospace company in Alabama. Today, the workforce of nearly 3,300 employees perform leading edge work on a broad array of key space and defense programs including the Ground-based Midcourse Defense, International Space Station, Delta Launch Vehicles, Avenger, Arrow and PAC-3 Missile.

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.

For further information:
Linda James
Boeing Communications
(256) 461-3101