ST. LOUIS, July 30, 2007 -- The Boeing Company [NYSE: BA] and its TEAM TSAT industry partners today submitted a proposal to the U.S. Air Force for the Development and Production phase of the Transformational Satellite Communications System Space Segment (TSAT) program.

"TEAM TSAT offers unique capability and experience to the U.S. Air Force," said Howard Chambers, vice president and general manager of Boeing Space and Intelligence Systems. "That value is based on our 25-year heritage providing military satellite communications and our best-of-industry team, which has successfully delivered the most capable terrestrial and satellite communications network systems in service today."

Delivery of the proposal caps more than three years of work on the TSAT Space Segment Risk Reduction System Definition contract. During that time, Boeing has demonstrated TSAT's advanced capabilities and technology maturity through successful laser communications and Next Generation Processor Router demonstrations. Additional demonstrations across all key elements of the TSAT network culminated with the comprehensive, integrated, end-to-end demo at the Space Segment Design Review in April. These risk reduction efforts have confirmed compliance with standards, interoperability and mission-level performance.

"Our partners and suppliers make our proposal stand out," said Chambers. "This is a case where the whole is greater than the sum of its parts. Our team has the people, processes, tools and capabilities that precisely match the Air Force's needs."

Boeing and its partners look forward to continued collaboration with the Air Force and stand ready to begin work immediately upon contract award, which is anticipated in November. Boeing will build TSAT at its satellite factory in El Segundo, Calif.

Boeing's TEAM TSAT consists of Cisco Systems, Hughes, IBM, Harris Corp., Ball Aerospace & Technologies Corp., LGS Innovations, Raytheon, General Dynamics C4S, L-3 Communications, BBN Technologies, EMS Technologies, Innovative Communications Engineering and SAIC.