Boeing-SAIC Team Selected for U.S. Army's Future Combat Systems Program.

Business Editors

SEAL BEACH, Calif.--(BUSINESS WIRE)--March 7, 2002

Today's announcement selecting The Boeing Co. (NYSE:BA) -- Science Applications International Corp. (SAIC) team as the Lead System Integrator (LSI) for the U.S. Army's Future Combat Systems (FCS) places the team in a unique partnership role with government on a program that is key to the Army's transformation goals.

The win also represents a key component in Boeing's vision of the integrated battlespace of the future, where networked information and communications systems provide a competitive edge to soldiers in the field and commanders in the control room.

The FCS agreement, subject to negotiations, has an expected value of $154 million, which represents a portion of the program, which is estimated at $4 billion over the next five years. The Defense Advanced Research Projects Agency (DARPA), working with the Army, is the contracting agency.

"FCS represents a new, accelerated approach to acquiring systems-of-systems capabilities," said Jim Albaugh, president and CEO of Boeing Space and Communications.

"The customer said it wasn't looking for a traditional prime contractor, but rather a partner. We took an `honest broker' approach that as the LSI, we would look across all of industry, not just our team, to find the best solution for each part of the program."

FCS is a networked system of improved communications links and lighter, more mobile armored vehicles that is, in effect, the backbone of the Army's long-term transition plan to reach what it calls the "objective force."

FCS will serve as the core building block to develop what the Army calls "overmatching" combat power, sustainability, agility and versatility necessary for full-spectrum military operations.

This next-generation objective force will be lighter and more mobile; the Army transformation requirements include the ability to put a combat-capable brigade anywhere in the world within 96 hours, a full division in 120 hours, and five divisions on the ground within 30 days.

Phantom Works, Boeing's advanced research and development arm, working with Boeing Space and Communications, and SAIC led separate teams for the Concept Definition phase of FCS. The two teams' combined experiences and backgrounds proved to be a winning combination for the upcoming Concept and Technology Development phase.

"By teaming with SAIC, we were able to merge the best of each of our concepts to provide the lowest risk approach to achieving initial operational capability in this decade and a rapid evolution to the most capable FCS force possible," Ron Prosser, vice president of Advanced Space and Communications for Phantom Works, said.

"SAIC brings a team of experienced senior engineers and scientists with strong DARPA and Army experience and expertise that is critical to the FCS program: systems engineering; modeling, simulation; test and evaluation; combat systems; command, control, communications, computers, intelligence, surveillance, and reconnaissance," said Duane Andrews, SAIC corporate executive vice president.

Boeing Space and Communications (S&C), with headquarters in Seal Beach, is the world's largest space and communications company. A unit of The Boeing Co., S&C provides integrated solutions in missile defense, information and communications, launch services, and human space flight and exploration.

It is a leading provider of space-based communications; the primary systems integrator for U.S. missile defense; a leading provider of intelligence, surveillance and reconnaissance; and NASA's largest contractor. The global enterprise has customers worldwide and manufacturing operations throughout the United States and Australia.

The Phantom Works advanced research and development division serves as the catalyst of innovation for the Boeing enterprise. By working together with all the business units, it provides the innovative, breakthrough technologies they seek to reduce the cycle time and cost while improving the quality and performance of their aerospace products and services.

SAIC is the nation's largest employee-owned research and engineering company, providing information technology, systems integration and e-business products and services to commercial and government customers.

SAIC engineers and scientists work to solve complex technical problems in telecommunications, national security, health care, transportation, energy, the environment and financial services. With annual revenues of $5.9 billion, SAIC and its subsidiaries, including Telcordia Technologies, have more than 40,000 employees at offices in more than 150 cities worldwide.

More information about SAIC can be found on the Internet at www.saic.com.