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Boeing Awarded Contract Modification for NATO AWACS Upgrade

ST. LOUIS, Mo., Dec. 19, 2002 -- Boeing [NYSE: BA] has received a contract modification to continue and complete the Mid-Term Modernization Program, a major upgrade to NATO's fleet of 17 AWACS aircraft.

The agreement, which increases the value of the Mid-Term contract to more than $1.3 billion, was awarded by the Electronic Systems Center, Hanscom Air Force Base, Mass. acting as agent for the NATO Airborne Early Warning Programme Management Agency in Brunssum, Netherlands. The upgrade includes integration of state-of-the-art enhancements to the fleet's computers, displays, communications, navigation and target identification systems.

Under the contract modification, additional work packages will provide engineering and development to integrate new commercial-off-the-shelf electronics and computing systems, as well as an option for the production and retrofit program.

Production and retrofit of the fleet would be authorized in 2004 following the successful completion of a NATO initial operational test program of the first AWACS aircraft modified under the Mid Term Program. This phase of testing is scheduled for completion in August 2003.

Steve Behnen, Boeing NATO AWACS program manager, said, "This new agreement paves the way for us to complete the development work and deliver this powerful capability to our NATO customer."

The Mid-Term Program enhancements include:

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 $23 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-base communications; the primary systems integrator for U.S. missile defense; NASA's largest contractor; and a global leader in launch services.

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Dave Sloan
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david.a.sloan@boeing.com
Martha Newhart
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