It's a ``Go'' for the Boeing-SAIC Future Combat Systems Team.

Business Editors & Aerospace Writers

ST. LOUIS--(BUSINESS WIRE)--Oct. 10, 2002

The Boeing Co. (NYSE:BA) -- Science Applications International Corp. (SAIC), Future Combat Systems (FCS) team received a green light from the government on the program "go/no go" decision that ensures it will continue as the industry lead for this critical Army program.

"The `go/no' go review was, in essence, an `off ramp' for the government that was built into the FCS contract and for a good reason," said Jerry McElwee, Boeing vice president and program manager for FCS.

"The concept of an industry lead systems integrator (LSI) was so revolutionary that the Defense Advanced Research Projects Agency (DARPA) and the Army wanted an opportunity to reaffirm their choice of the LSI early in this phase of the program.

"The thumbs up for the Boeing-SAIC LSI team is a welcome decision," he said. "Close collaboration between DARPA, the Army, the LSI, and industry is absolutely essential to meeting the demanding schedule."

The timing of the "go/no go" decision was tied contractually to the second FCS interim program review (IPR), which was completed recently at the FCS facility in Anaheim and briefed last week to top government officials in Washington.

"This second IPR, which was held just six months into the program, showed that significant progress has been made," said Col. William Johnson, DARPA FCS program manager. "The team has met or exceeded all the objectives for the current phase of the program; they are on budget and on schedule."

The Boeing-SAIC team was awarded the FCS LSI role in March of this year. The LSI role was strategically important for the Boeing Integrated Defense Systems and Phantom Works organizations, which are jointly managing the program. FCS represents the key step into a network-centric, integrated battlespace market that is part of Boeing's vision for the future.

A unit of The Boeing Co., Boeing Integrated Defense Systems is one of the world's largest space and defense businesses. With headquarters in St. Louis, Boeing Integrated Defense Systems is a $23 billion business. It provides systems solutions to its global military, government and commercial customers.

It is a leading provider of intelligence, surveillance and reconnaissance; the world's largest military aircraft manufacturer; the world's largest satellite manufacturer and a leading provider of space-based communications; the primary systems integrator for U.S. missile defense; NASA's largest contractor; and a global leader in launch services.

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 eSolutions to commercial and government customers. SAIC engineers and scientists work to solve complex technical problems in national security, homeland defense, energy, the environment, telecommunications, health care and transportation.

With annual revenues of $6.1 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.