BOEING INTEGRATED DEFENSE SYSTEMS continued

Space Payloads

Boeing has prepared payloads for space flight since the dawn of the Space Age. Under the Checkout, Assembly & Payload Processing Services contract with NASA, Boeing and its teammates receive and process payloads, prepare mission cargo, test for launch vehicle compatibility, extract payloads at mission end, and operate and maintain associated facilities and ground systems. Boeing has processed every Space Shuttle payload since the first flight in 1981 and prepares every component of the International Space Station before it leaves Earth.

Space Shuttle

The Space Shuttle is the world's only operational, reusable launch vehicle capable of supporting human space flight mission requirements. Boeing is a major subcontractor to NASA's space flight operations contractor, United Space Alliance. As the original developer and manufacturer of the Space Shuttle Orbiter, Boeing is responsible for orbiter engineering, major modification design, engineering support to operations, including launch, and overall shuttle systems and payload integration services. Boeing is also responsible for the Space Shuttle Main Engine program.

T-45 Training System

The two-seat T-45 Goshawk is the heart of the integrated T-45 Training System, which the U.S. Navy employs to prepare pilots for the fleet's carrier-based jets. The system includes advanced flight simulators, computer-assisted instruction, a computerized training integration system and logistics support. U.S. Navy, U.S. Marine Corps and international student naval aviators train in the T-45A/C at Naval Air Stations in Meridian, Mississippi, and Kingsville, Texas.

2003 deliveries: 12

X-45 Joint Unmanned Combat Air System (J-UCAS)

The J-UCAS X-45 Program will produce the first highly autonomous, adaptive, unmanned system specifically designed for combat operations. Developed with the Defense Advanced Research Project Agency, the U.S. Air Force and the U.S. Navy, Boeing's J-UCAS program has produced two X-45 technology demonstrators and is now designing the larger, longer-range X-45C and X-45CN to demonstrate the system's military utility and operational value to both the U.S. Air Force and U.S. Navy. The first X-45C is scheduled to fly in early 2006.

X-37

Boeing is currently developing the X-37 reusable space plane. The X-37 will serve as a testbed for at least 25 to 27 new technologies applicable to airframe, propulsion and operation, which are designed to make space transportation and operations significantly more affordable. Its first flight will take place in 2004 as an Approach and Landing Test Vehicle.

V-22 Osprey

Developed in partnership with Bell Helicopter Textron, the revolutionary V-22 Osprey tiltrotor aircraft is now undergoing an unprecedented, rigorous flight test program. Carrying greater payload at altitudes and distances of turboprop transports, the multiservice, multimission aircraft is being delivered to the U.S. Marine Corps (360) and the U.S. Air Force Special Operations Command (50). The U.S. Navy is scheduled to take delivery of 48 V-22s.

CONNEXION BY BOEING

Scott Carson, President, Seattle and Kent, Washington, and Irvine, California

Connexion by Boeing provides high-speed broadband communication services to mobile platforms, including aircraft and maritime vessels. Through the service, connectivity is delivered directly to laptops and personal digital assistants (PDAs) in flight, providing airline passengers and operators of executive aircraft for government and the private sector with personalized and secure real-time access to the Internet, company intranets and television and news content. The Connexion by Boeing broadband approach also permits applications to link aircraft data systems with airline operations, enhancing aircraft operational efficiency on the ground and in the air.

BOEING CAPITAL CORPORATION

Walt Skowronski, President, Renton, Washington

Boeing Capital is a global provider of financial solutions. Working with Boeing Commercial Airplanes, we develop value-added customer financing by facilitating, arranging and, where appropriate, providing financing for Boeing Commercial Airplanes customers. For Boeing Integrated Defense Systems, Boeing Capital's role encompasses arranging and structuring financing solutions for government and commercial customers around the world. Our partnership with the other Boeing business units, and more than 35 years of knowledge and experience in customer financing provide a competitive edge that benefits Boeing and the company's customers. Boeing Capital manages a portfolio of more than $12.2 billion.

AIR TRAFFIC MANAGEMENT

John Hayhurst, President, McLean, Virginia, and Bellevue, Washington

Boeing ATM continues to work with stakeholders around the world to advocate transforming the global air transportation system by developing a network-enabled system. In 2003, ATM continued its successful performance on contracts in the United States, Europe and Asia. Boeing also signed a strategic agreement with Europe's Air Traffic Alliance-a grouping of EADS, Airbus and Thales-to collaborate on issues affecting the development of a globally integrated air traffic system in the future.