Rockwell Collins To Supply Primary Avionics For 767 Tanker Transport Program; Anticipates More Than $260 Million in Sales.

Business Editors/High-Tech Writers

CEDAR RAPIDS, Iowa--(BUSINESS WIRE)--June 17, 2003

Using technology developed across its government and commercial programs, Rockwell Collins (NYSE:COL) has earned a major role on an important new global tanker program worth $260 million in anticipated sales to the company over a 10-year period. The Boeing Company has selected the Cedar Rapids-based company to provide key avionics and support for the new 767 Tanker Transport program.

Rockwell Collins is responsible for the development, production and integrated fleet support phases of the program. Under terms of the agreement, the company will provide communications and navigation equipment, and will modify the commercial 767 display systems to incorporate military tanker mission capabilities. Additionally, Collins Aviation Services will provide Integrated Fleet Support including repair, spares ownership and field service engineering for these avionics.

"We are proud to be Boeing's strategic supplier for this important new aircraft platform," said Greg Churchill, executive vice president and COO of Rockwell Collins Government Systems. "This selection by Boeing demonstrates our ability to combine our commercial, military and service capabilities to bring value-added solutions to the military marketplace."

The Italian Air Force and the Japan Air Self Defense Force have already selected the aircraft for their tanker missions. The U.S. Department of Defense has approved the lease of 100 KC-767A tankers. The lease details are being reviewed by Congress.

"Additionally, we anticipate an increase in sales when the aircraft is further embraced in the international marketplace," said Churchill.

"By applying products and expertise from our commercial, government and services businesses, we are providing an integrated suite of avionics and services that meet the tanker's mission requirements," said Ron Hornish, vice president and general manager of Integrated Applications and Navigation Systems for Rockwell Collins. "We will oversee program coordination and integration of Link-16 and other subsystems to provide military mission and tactical situational awareness via the commercial primary flight displays. We will also provide a suite of military communication and navigation products, including modification of our ARN-153 Tactical Air Navigation System (TACAN) product line to provide air-to-air beacon capability."

Rockwell Collins will modify some current commercial applications, including the 767-400 Large Format Display System (LFDS), and 767-200 Electronic Flight Instrument System (EFIS) and Engine Indication and Crew Alert System (EICAS) to support the unique tanker mission requirements. Additionally, the company will provide a suite of commercial communications, navigation and sensor products that includes weather radar, EFIS/EICAS modifications and SATCOM.

Rockwell Collins (NYSE:COL) is a leader in the design, production and support of communications and aviation electronics solutions for government and commercial customers worldwide. Additional information is available at www.rockwellcollins.com.

This press release contains statements (including projections associated with Rockwell Collins providing avionics and support for the 767 Tanker Transport program) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including, but not limited to U.S. government spending and budgetary policies; potential cancellation or amendments of awards or orders; challenges in the design, development and production of advanced technologies; and competitive product and pricing pressures; as well as other risks and uncertainties, including but not limited to those detailed from time to time in the Rockwell Collins Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof.