General Atomics Aeronautical Systems, Inc. and Boeing sign MOU to Collaborate on Systems Integration

FOR IMMEDIATE RELEASE

May 14, 2003

14 May 2003 - San Diego,California. General Atomics Aeronautical Systems, Inc., a leading manufacturer of unmanned aircraft surveillance systems, announced today it had signed a Memorandum of Understanding with Boeing that will allow the two companies to discuss areas of cooperation in the areas of unmanned systems, network-centric operations and other large-scale systems integration efforts.

The initial area of cooperation under the MOU will involve integrating the command and control architecture for General Atomics Aeronautical Systems' Predator unmanned aircraft system into both the E-3 Airborne Warning and Control System (AWACS) and the AH-64 Apache helicopter platforms. The ultimate goal is to “fuse” the disparate systems, and in turn increase connectivity and interoperability between manned and unmanned aircraft.

"This MOU constitutes a step forward in strategic planning, allowing each company a vehicle through which to communicate on potential business opportunities. Establishment of a working relationship with Boeing and other leading companies could have significant benefits for the customer which is our ultimate goal. Interoperability between manned and unmanned aircraft systems will be key to making network centric a successful concept for the military," stated Mr. Thomas J. Cassidy, Jr., President and Chief Executive Officer of General Atomics Aeronautical Systems, Inc.

'This agreement provides two of the aerospace industry's technology leaders with an opportunity to pool their talents and play an even stronger role in the fields of unmanned systems and network-centric operations, which are so important to the transformation of the military,” said Mike Heinz, Boeing vice president and deputy general manager of Integrated Defense Advanced Systems (IDeAS) and Unmanned Systems. “We plan to rapidly develop and provide new technologies and system-of-system solutions to our customers that will meet their evolving needs with currently fielded and developing systems, and lead to major increases in operational effectiveness.”

General Atomics Aeronautical Systems, Inc. and Boeing will also consider working together to identify, develop and capture specific new business opportunities. The agreement also allows the companies to share relevant business development strategies and information to help anticipate evolving customer needs.

About the Companies

Founded in 1993, General Atomics Aeronautical Systems, Inc. is the leading developer of proven and reliable remotely piloted aircraft systems for various customers throughout the world. General Atomics Aeronautical Systems has spearheaded acceptance of unmanned aircraft systems for military and commercial customers such as the U.S. Air Force, U.S. Navy, NASA, Department of Energy and several overseas governments while leading the industry to new levels of performance and interoperability for network centric operations.

The Boeing Phantom Works IDeAS organization works with each of the company's Integrated Defense Systems business units to provide advanced products, solutions and innovative, breakthrough technologies that will meet future customer requirements. Headquartered inSt. Louis, Boeing Integrated Defense Systems is one the world's largest space and defense businesses. It provides systems solutions to its global military, government and commercial customers.

For more information contact:

Public Relations Department
General Atomics Aeronautical Systems, Inc.
+1.858.455.2294
pr-asi@uav.com

Chick Ramey, The Boeing Company 206.662.0949
charles.b.ramey@boeing.com

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