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Note to USA employees regarding performance fee decision

Status Report From: United Space Alliance
Posted: Wednesday, January 28, 2004

From: USA Communications [mailto:USA.Communications@usa-spaceops.com]
Sent: Thursday, January 22, 2004 12:08 PM
To: ALL-DEPARTMENTS
Subject: Important CEO/COO Message

January 22, 2004

Dear Colleagues,

The tragic loss of the crew of the Space Shuttle Columbia has been painful for all of us in the human space flight family. We know that many of you personally worked with Columbia's remarkable crew to prepare them for the mission, and all of you are working tirelessly to safely return to flight.

As a matter of principle and out of respect for the memory of the Columbia crew and for their families, USA offered, last summer, to reduce fees associated with the six-month performance period during which the Space Shuttle Columbia tragedy occurred so that no one would benefit from the tragedy. In a letter received from NASA, it was agreed that our fee for that period would, in fact, be reduced based on the rationale that USA was an integral member of the Shuttle management team that was responsible for the safety of Columbia and crew.

In the letter notifying USA of the fee decision, NASA also chose to highlight our accomplishments, stating, it is important to NASA to give due regard to United Space Alliance's successes during the period, notwithstanding the loss of Columbia. NASA has agreed that suitable acknowledgement of the company's accomplishments is an important tool for communicating to the United Space Alliance workforce that NASA values their contributions to date, and trusts and anticipates that they will perform well in the future.

From this tragedy, the NASA and USA team has emerged smarter, stronger and safer. Together we will return our Space Shuttles to flight as soon as it is safe to do so. USA's commitment to safety and quality must remain unrivaled as our performance will continue to be key to ensuring the safety and success of the Space Shuttle program.

We will always remember the brave crew of Columbia. As we work with NASA and our industry counterparts to return America to safe flight and beyond, the Columbia tragedy will serve as a constant reminder of the inherent risks associated with human space exploration and of our duty to maintain an unwavering vigilance over them. We are confident that each of you will continue to do your part to return the Shuttle safely to flight.

Thank you for your dedication and support.

Sincerely,

/Original Signed by Michael McCulley/

Mike McCulley
President and CEO

/Original Signed by Brewster Shaw/

Brewster Shaw
Executive VP and COO

Managers: Please provide hard copy of this message to employees who do not have immediate access to email.

This message has been posted on the USA home page and the employee web tops.

// end //

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