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Boeing Reacts to Court Decision in A-12 Case

CHICAGO, May 03, 2007 -- J. Michael Luttig, senior vice president and general counsel of The Boeing Company [NYSE: BA], today directed that an immediate appeal be taken to the United States Court of Appeals for the Federal Circuit following a Court of Federal Claims decision upholding the government's position in the long-running A-12 case.

"We remain very confident of our position in this case -- even more so after reviewing today's decision," Luttig said.

At issue in this litigation, which has been pending over a decade, is the manner in which the Defense Department terminated the A-12 military aircraft program and whether the government owed Boeing (then McDonnell Douglas) and General Dynamics Corporation money for work in progress when the contract was terminated, as well as certain other expenses. The trial court originally ruled in favor of the contractors, but various appeals over the years have delayed a final decision.

The A-12 was to have been the Navy's next-generation, carrier-based advanced tactical aircraft utilizing low observable "stealth" technology.

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