Boeing Awarded $30 Million U.S. Air Force Contract to Provide Continued Broadband Communications Services

ST. LOUIS, Aug. 14, 2007 -- Boeing Service Company of Richardson, Texas, a wholly owned subsidiary of The Boeing Company [NYSE: BA], has been awarded a $30 million firm-fixed-price contract to continue providing Boeing Broadband Satcom Network (BBSN) service to the U.S. Air Force Air Mobility Command.

BBSN provides high-speed Internet communications and direct broadcast satellite TV service as a cost effective solution for the U.S. government's aircraft and airborne customers. Supported aircraft include C-32s, C-40s, E-4s as well as the full spectrum of VIP and special air mission aircraft.

Formerly Connexion by Boeing, the sophisticated satellite network transitioned to the U.S Air Force earlier this year to better meet its customers' needs.

"This contract modification is the result of hard work by dozens of dedicated BBSN engineers and operations team members who work with our customers to deliver and manage a cost effective broadband communications solution," said Ed Laase, director of Communications Services for Boeing Service Company. "It represents the confidence the Air Mobility Command has in BBSN and its support team."

The total value of the modified contract is $53,608,368. This is the fourth option period and represents the fifth year of service undertaken by the BBSN team. The fifth option period, if exercised, would increase the contract value to nearly $72 million.

Ron Guzdar, BBSN project manager, said, "It's the service and quick response to issues that most impress the customer. As a managed network service we can monitor every phase of our global broadband footprint and take corrective action, even before it becomes a problem to the customer. It's rewarding to think that our team plays such an important role in helping our nation's leaders stay in touch with the world."