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Connexion by Boeing Awarded $112 Million Contract.

Credit Pacific Service Union While ?ecivilian?f air carriers have backed-off temporarily from their aim of providing inflight communication facilities for passengers, Boeing has been awarded a $112 million dollar indefinite delivery/indefinite quantity contract to provide upgrade and subscription support for the C-32A Mission Communications System for the US Air Force.

"We've listened closely and are making changes that provide added flexibility at price points more favorable to our customers." Beginning Monday, January 23, all airlines equipped with the Connexion by Boeing service may begin offering their passengers four channels of live global TV from their laptops. Live global TV programming is part of the Internet and data access service and is provided at no additional cost to passengers purchasing the Connexion by Boeing service.

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The Yahoo! Search Engine feature, available on the Connexion by Boeing air portal, will also be accessible by passengers beginning January 15. The television programming, which will be distributed across the Connexion by Boeing global network, consists of BBC World, EuroNews, Eurosportnews, CNBC and MSNBC. "Connexion by Boeing is at the forefront of a major shift in how people communicate and entertain themselves no matter where they are, " said Friedman. "Our service continues to evolve with more innovative features that enhance passengers' flight experience."

Card Credit Mobile Service The upgrades will use the revolutionary Connexion by Boeing airborne broadband communication service, with all work scheduled to be completed by September 2003. The C-32A is a specially configured Boeing 757-200 for the USAF. The aircraft provides safe, reliable worldwide airlift for the Vice President, cabinet members and other government officials. Four C-32As are currently in service.

The price of the deal was not disclosed, but could be around $4 billion. Japan Airlines is expected to receive its first Boeing Dreamliner in 2008. Boeing ( BA) and European rival Airbus were competing for the Japan Airlines deal. Boeing and Airbus have been battling in recent months to win contracts with Asian airliners.Boeing recently reached a deal with Japan's All Nippon Airways, while Airbus inked a contract with Malaysia's AirAsia.

Card Credit Discover Service "We are extremely pleased with this contract award and the opportunity to showcase the productivity benefits that commercial broadband communication technologies can provide to our government customers," stated Connexion by Boeing President Scott Carson. "Current world events have heightened the need for global leaders and executive aircraft operators to maintain real-time, two-way broadband connectivity while in the air, as well as stay abreast of world news as it happens -- not after the fact. The Connexion by Boeing service can offer significant support in all these areas."

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Credit Public Service Union Under the terms of the modification contract, Boeing will equip up to four C-32A aircraft with an integrated, two-way communications capability using the satellite-based Connexion by Boeing broadband Internet and data service. At this time $9.5 million of the funds have been obligated. The Air Force can issue delivery orders totaling up to the maximum amount indicated, although actual requirements may necessitate less than this amount. The Aeronautical Systems Center, Wright-Patterson Air Force Base, Ohio is overseeing all contracting activity.

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Card Credit Processing Service Connexion by Boeing is the market-leading initiative to bring commercial broadband data services to commercial and executive aircraft during flight, allowing passengers to have access to e-mail, the Internet, firewall-protected intranet access, e-commerce, television, news and entertainment content and transmission and receipt of data. Aircraft operators also benefit from in-flight access to aircraft and crew data. Boeing is also studying the potential applicability of the Connexion broadband in-flight data services for enhancing aviation security.

Center Credit Service Union The Connexion by Boeing service is currently available to the executive services market in the U.S., which includes operators of private and government aircraft. Connexion by Boeing also remains on track with Lufthansa to equip its long-haul fleet beginning with a demonstration installation in late 2002/early 2003.

Card Credit Service Wireless www.boeing.com/connexion

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