Boeing-Siemens Team Responds to U.S. Airport Security Needs.

Business Editors

WASHINGTON--(BUSINESS WIRE)--April 9, 2002

The Boeing Co. (NYSE:BA) and Siemens Corp., both world leaders in serving the aviation industry, are teaming to respond to the U.S. government's request for proposals to install, operate and maintain a system of explosives detection devices in U.S. airports.

The U.S. Department of Transportation's Transportation Security Administration will manage the massive program, which was mandated by Congress following the Sept. 11, 2001 terrorist attacks. Both companies and their subcontractors have submitted a bid to the U.S. government in response to its request to fulfill the objectives of the Aviation and Transportation Security Act. A federal decision is expected by early May.

"We believe the combination of Boeing and Siemens is uniquely positioned to tackle this complex, technical challenge," said John Stammreich, vice president of Boeing Homeland Security. "Boeing brings two elements to this program. We are very good at integrating big, complex systems and we know how to work with multiple suppliers in a coordinated, efficient fashion. Both will be critical to the program's success.

"This is one of those times when great companies like Boeing and Siemens will really stretch to reach the goal, but we have no choice. This is about our country and the safety of the flying public," Stammreich added.

"Siemens is the ideal partner with Boeing on this critical project to improve the nation's airport security system," said Klaus Kleinfeld, president and CEO of Siemens. "Siemens is a major service provider of technologies and integration systems that not only enhance the operations of U.S. government and military facilities, airports and other transportation centers but also make them safer and more secure. Siemens has the two necessary elements to build a successful federal safety program -- the expertise in developing high-level security and business technology programs, and the experience integrating complex systems across many organizations and locations.

"Siemens and Boeing have the scale to successfully implement a project of this magnitude," Kleinfeld continued. "We are eager to do our part and use our resources to make travel in America safer and easier."

Boeing, based in Chicago, is a world leader in commercial aviation. Siemens Corp., based in New York, is a leader in integrated airport solutions, including baggage handling systems, airfield lighting and control systems, and technical service and training. The team has more than 300 years of experience in aviation and airport projects around the globe. In addition to installing and operating detection devices in 438 of the nation's airports, the project includes selecting, training and supervising more than 20,000 airport baggage screening employees.

Both companies have conducted extensive research and have demonstrated experience in rapid project deployment that will ensure the devices are installed and operational within the timeframe set by the Transportation Security Administration. The team's Explosive Detection Systems (EDS)/Explosive Trace Detection (ETD) initiative was based on the administration's requirements and included equipment positioning as well as passenger traffic flow.

The Boeing-Siemens team includes leaders in airport simulation and facilities and operational analysis, including The Preston Group, a Boeing subsidiary that provides aviation infrastructure simulation and modeling; construction management by Turner Construction; Trans Solutions Systems Inc., a leading provider of integrated solutions for the ocean container shipping industry; and international architectural and engineering firms Leo A. Daly, Corgan and DMJM Aviation.

Siemens Corp. is a subsidiary of Siemens AG (NYSE:SI), a leading global electronics and engineering company. The United States is Siemens' largest market, with nearly 80,000 employees in 50 states and sales of $18.9 billion for fiscal 2001 (10/1/00 -- 9/30/01). For more information about Siemens, go to www.usa.siemens.com. Worldwide, Siemens employs some 450,000 people in 193 countries and reported sales of more than $74 billion in fiscal 2001.

The Boeing Co. is the world's leading aerospace company, with its heritage mirroring the history of flight. It is the largest manufacturer of satellites, commercial jetliners and military aircraft. The company is also a global market leader in missile defense, human space flight and launch services. Boeing has an extensive global reach with customers in 145 countries.