Statement from Randy Brinkley, President of Boeing Satellite Systems, Regarding Department of State Allegations

Boeing Satellite Systems takes
these charges very seriously. It is important to remember that these charges
relate to events that occurred in the 1990s when Hughes Space and
Communications Company was under different management and before Boeing
acquired the satellite business. As a condition of the acquisition, Hughes
retained responsibility for resolving these China matters and for paying any
resulting fines or penalties.

The Boeing Company (NYSE: BA) places the highest priority on compliance
with export control laws. Since its acquisition of Hughes Space and
Communications Company in October 2000, Boeing Satellite Systems has spent
millions of dollars increasing personnel, upgrading processes, and
incorporating new technology to remain in strict compliance in all of our
international relationships. Boeing Satellite Systems is now at what we
believe to be the cutting-edge of export compliance systems among aerospace
companies.

The satellite market is global and competitive. As BSS continues to
operate in this marketplace, protecting technology will remain an essential
priority.