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A-12 DEFERMENT AGREEMENT IS CONTINUED

 ST. LOUIS, Dec. 14 /PRNewswire/ -- McDonnell Douglas (NYSE: MD) was informed today that, after completion of a review by the U.S. Navy, the A-12 deferment agreement will remain in place.
 In response, McDonnell Douglas stated "continuation is the appropriate action to take until the litigation regarding the A-12 termination is resolved, or a negotiated settlement is reached."
 The deferment agreement remains in force until the litigation over the A-12 termination is resolved, subject to an annual review by the U.S. government each Dec. 1.
 McDonnell Douglas and General Dynamics, the A-12 contracting team, continue to pursue their challenge of the termination of the A-12 program for default in a lawsuit filed in the United States Court of Federal Claims.
 -0- 12/14/92
 /CONTACT: Barbara Anderson of McDonnell Douglas, 314-233-2865/
 (MD)


CO: McDonnell Douglas Corp. ST: Missouri IN: ARO SU:

KJ -- LA038 -- 6973 12/14/92 19:22 EST
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Publication:PR Newswire
Date:Dec 16, 1992
Words:151
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