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McDONNELL DOUGLAS ISSUES STATEMENT

 ST. LOUIS, Feb. 3 /PRNewswire/ -- McDonnell Douglas (NYSE: MD) today issued the following statement regarding the downgrading of its debt ratings yesterday by Moody's:
 We are shocked, particularly in view of our recent performance and the fact that the majority of our problems were put to rest in 1992, positioning us for a year of stronger cash flows, reduced debt and improved earnings. We don't understand Moody's precipitous action and think it is unwarranted and inconsistent with the detailed financial plans provided to them.
 Our commercial aircraft business just posted its ninth consecutive profitable quarter, and the MD-11 is turning cash positive. Ten of our 11 largest government programs, as a group, in 1992 produced operating margins of nearly 10 percent. The other major program, the C-17, will become profitable in 1993. We continue to pursue our strategy of selling non-strategic assets, and earlier this week announced the completion of the sale of our Visual Simulation Systems business.
 We are taking the right steps to make 1993 the year in which we re-establish McDonnell Douglas' financial strength. Our announced intentions for 1993 are to produce at least $1 billion in free cash (half from non-strategic asset sales, half from operating earnings), to reduce our debt by at least $1 billion (to under $1.8 billion), to produce positive cash flow from the MD-11, to turn the C-17 to profitable status (as it moves from development/testing phase to production phase), and to continue strong performance on all major government programs, many of which continue well into the 21st century.
 In view of the above we believe Moody's concerns are overblown and will endeavor to meet with them to re-address their actions.
 -0- 2/3/93
 /CONTACT: Barbara Anderson of McDonnell Douglas, 314-233-2865/
 (MD)


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

JL -- LA014 -- 2364 02/03/93 11:51 EST
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Date:Feb 3, 1993
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