BOEING SATELLITE SYSTEMS, INC. Public Relations Department P.O. Box 92919 (S10/S323) Los Angeles, CA 90009 Public Relations (310) 364-6363 www.boeing.com/satellite

EL SEGUNDO, Calif., Jan. 8, 2001 -- The U.S. Navy has authorized Boeing Satellite Systems, Inc. (BSS), to begin production of the 11th in a series of UHF Follow-On (UFO) satellites, which provide global communications for the armed forces. BSS is a unit of The Boeing Company (NYSE:BA).

The agreement amends an existing $1.9 billion contract under which BSS has built and launched 10 UFO satellites. The satellite will be launched in 2003.

The Navy began replacing and upgrading its ultra-high frequency (UHF) satellite communications network during the 1990s with a constellation of Boeing 601 spacecraft known as the UHF Follow-On (UFO) series. In 1999, the Navy’s Space and Naval Warfare Systems Command granted BSS initial funding for long-lead parts procurement and related activities on UFO F-11. With this authorization to proceed with F-11’s construction, the Navy is moving to sustain the UFO constellation into the latter part of this decade.

"Over the life of this highly successful program, the UHF Follow-On payloads have evolved to meet the customer’s changing needs, while being contained within the same basic Boeing 601 platform. This building-block approach allowed us to add valuable enhancements to the satellite payloads without a break in production," said Tig H. Krekel, President of Boeing Satellite Systems, Inc. "We take great pride in our role on this program because the UHF mobile service is the backbone of military communications today, supporting warfighters on land, at sea and in the air."

UFO F-11 will use the Boeing 601 bus, like the previous UFO satellites. It will carry a UHF (ultra-high frequency) payload for narrowband two-way battlefield connectivity, and an EHF payload. The high-capacity EHF subsystem provides enhanced antijam telemetry, command, broadcast and fleet interconnectivity communications, using advanced signal processing techniques.

The most recent UFO satellites – F-8, F-9 and F-10 – also carry a high-capacity global broadcast service (GBS) payload, which uses commercial-like direct broadcast satellite technology to provide critical information to U.S. and allied forces. The UFO constellation provides the Department of Defense (DoD) with communication services that range from mobile communications to intelligence dissemination and quality-of-life programming.

BSS is the world’s leading manufacturer of commercial communications satellites and a major provider of space systems, satellites, and payloads for national defense, science and environmental applications. The company was formed in October 2000 when Boeing acquired the Hughes Electronics satellite manufacturing companies, which included Hughes Space and Communications Company, Hughes Electron Dynamics, Spectrolab, Inc., and Hughes Electronics’ 50 percent share of HRL Laboratories.

The Boeing Company, headquartered in Seattle, is the largest aerospace company in the world and the United States’ leading exporter. It is the world’s largest manufacturer of commercial jetliners and military aircraft, and the largest NASA contractor. The company’s capabilities in aerospace also include rotorcraft, electronic and defense systems, missiles, rocket engines, launch vehicles, and advanced information and communication systems. The company has an extensive global reach with customers in 145 countries and manufacturing operations throughout the United States, Canada and Australia. At year-end 2000, Boeing and its subsidiaries employed more than 198,000 people.

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