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Boeing, IBM Strategic Alliance Boosts Net-Centric Technology

Industry Leaders Join Together to Address $200 Billion Market

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ST. LOUIS - 20 Sep 2004: Boeing and IBM announced a strategic alliance today in New York City to address an estimated $200 billion market for ground and space-based systems to enhance the nation's military communications, intelligence operations and homeland security.

The agreement brings together the nation's second largest defense contractor and leader in network-centric operations with the nation's leader in information technology and open-standards-based commercial software.

Through a 10-year alliance, the companies will develop advanced digital communications and information technologies for current and future Department of Defense and intelligence systems. These technologies will be critical for network-centric operations where satellites, aircraft, ships and submarines - as well as tanks, radios and even handheld computers - share information using the same interfaces, standards or protocols.

"The conflicts of the future will be less dependent upon who has the most physical assets such as ships, planes and tanks, but determined by who has the best information and the most efficient means of sharing it among all elements of the fighting forces," said Jim Albaugh, president and CEO of Boeing Integrated Defense Systems. "The Boeing and IBM team will deliver the finest digital information technology industry has to offer. With capabilities enhanced by this new technology our defense and intelligence community will gather real-time information and communicate it across all levels of command for maximum effect."

Boeing brings to the alliance its long history of success as a major military and intelligence platform provider, coupled with its broad experience as a lead systems integrator. IBM will provide Boeing with information management middleware, design elements for electronic systems products and will integrate complex, leading-edge technology into a variety of networking and computing systems being developed for the DoD and other government agencies. Additionally, IBM will provide microprocessor technology, electronics design tools, software and chip verification technology. The expertise IBM offers will enhance Boeing's role as a leader in providing government customers with network-centric operations.

"Our engineering and business consulting services have helped hundreds of commercial accounts literally transform to efficient, modern, integrated IT infrastructure. With this alliance, we will work with Boeing to help agencies such as the DoD do exactly the same thing," said Dr. John E. Kelly III, IBM senior vice president.

Dr. Kelly said IBM will provide Boeing with access to off-the-shelf technology, leading-edge computing products, skills for chip designs, knowledge management and infrastructure integration skills, plus a variety of embedded software, middleware and business software applications.

IBM is the world's largest information technology company, with 80 years of leadership in helping businesses innovate. Drawing on resources from across IBM and key business partners, IBM offers a wide range of services, solutions and technologies that enable customers, large and small, to take full advantage of the new era of e-business. For more information about IBM, visit http://www.ibm.com .

A unit of The Boeing Company, Boeing Integrated Defense Systems is one of the world's largest space and defense businesses. Headquartered in St. Louis, Boeing Integrated Defense Systems is a $27 billion business. It provides network-centric system solutions to its global military, government, and commercial customers. It is a leading provider of intelligence, surveillance and reconnaissance systems; the world's largest military aircraft manufacturer; the world's largest satellite manufacturer and a leading provider of space-based communications; the primary systems integrator for U.S. missile defense and Department of Homeland Security; NASA's largest contractor; and a global leader in launch services.

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