ST. LOUIS, Dec. 11, 2007 -- The Boeing Company [NYSE: BA] today announced that it has been selected to participate in the development of the next-generation Global Positioning System (GPS) ground system for the U.S. Air Force.

Known as OCX, the system will compliment the Air Force's future GPS III spacecraft by offering better positioning service than today's system as well as improved anti-jamming capabilities for the warfighter.

Boeing is a subcontractor to Raytheon Company [NYSE: RTN], which was awarded the $160 million, 18-month contract by the Air Force Space and Missile Systems Center in November.

The first phase of the OCX contract progresses the program through a system design review and the concurrent development of a ground system prototype engineering Model. The model will demonstrate improved mission capabilities for the warfighter as well as integration and compatibility across GPS satellite models operating today and in the future, including GPS IIF and GPS III.

"We look forward to delivering the best of Boeing's space-based navigation and communication capabilities to the GPS space and control segment," said Howard Chambers, vice president and general manager of Boeing Space and Intelligence Systems. "Our long-term GPS partnership with the Air Force assists us in meeting their ground station requirements, today and in the future."

Boeing is currently producing 12 GPS IIF satellites, with the first scheduled to launch next year, and earlier this year submitted its proposal to the Air Force for the development and production of up to 12 GPS III satellites. Boeing will continue its current GPS III system definition and risk reduction contract effort in parallel with the Air Force's source selection process to preserve continuity and ensure the program launches its first constellation in mid-2013, as scheduled.