ST. LOUIS, July 23, 2007 -- The Boeing Company [NYSE: BA] has been awarded a U.S. Army contract valued at approximately $7 million to begin developing the initial phase for a truck-mounted laser weapon system that destroys rockets, artillery shells and mortar rounds.

Under the High Energy Laser Technology Demonstrator (HEL TD) Phase I contract, awarded Friday, Boeing will develop and complete a preliminary design of a rugged beam control system (BCS) on a Heavy Expanded Mobility Tactical Truck.

The contract contains options that, if exercised, will call for Boeing to build and test a significant component of the HEL TD system, comprised of the BCS integrated on a vehicle platform, and refine requirements for the entire HEL TD system. The options would increase the total program contract cost to approximately $50 million.

The objective of the HEL TD program is to demonstrate that a mobile, solid-state laser weapon system can effectively counter rocket, artillery and mortar projectiles. The program will support the transition to a full-fledged Army acquisition program.

"We consider this program an important win for Boeing because it supports a cornerstone of the Army's high-energy laser program," said Pat Shanahan, vice president and general manager of Boeing Missile Defense Systems. "We believe this is the next step for developing a weapon system that can change the face of the battlefield."

Boeing leads the way in developing high-energy laser systems for a variety of warfighter applications. These systems include the Airborne Laser, the Advanced Tactical Laser and the Tactical Relay Mirror System.