News Release

Boeing, Cisco Business Alliance Accelerates Network-Centric Technology Development and Deployment

SAN JOSE, Calif., June 8, 2005 - Building on a successful
Jun 08, 2005

SAN JOSE, Calif., June 8, 2005 - Building on a successful 15-year business relationship, Boeing and Cisco signed a non-binding memorandum of understanding documenting their intention to extend their non-exclusive business alliance to create and deliver joint solutions for the projected $200 billion global market for network-centric defense and security operations.

The 10-year alliance unites Boeing, a leader in network-centric operations, with Cisco, the leading provider of open-standards-based, commercial networking technology and services to federal and global governments. Both companies intend to invest resources in defining, creating, integrating and deploying industry leading network centric solutions that help military and government agencies deal with complex and time-sensitive missions.

"We are in the midst of a major transformation in the way military and government customers will meet future threats using information technology," said Jim Albaugh, president and CEO of Boeing Integrated Defense Systems. "In order for our customers to meet their enduring needs of speed, mobility, situational awareness, and integrated command and control we must partner with the industry's best. Cisco is a proven provider of transformational technology and an industry leader at delivering intelligent network services. We are accelerating our collaboration with Cisco as we jointly design network-centric products and services for our mutual customers that will fulfill the capabilities our customers are demanding."

"Success in the evolving Intelligent Information Age will be dependent on the strength of partnerships," said John Chambers, president and CEO, Cisco Systems. "As part of our overall strategy to partner with leaders in the government sector, we are excited about broadening and deepening our existing relationship with Boeing and building on the best practices we have established working together on programs such as the Transformational Satellite Communications System. Cisco is committed to fostering this relationship to create innovative ways to apply intelligent technologies that address the people, process and technology strategies associated with network-centric operations models and transformation initiatives."

The alliance is complimentary to a previously announced, non-exclusive business alliance between Boeing and IBM. All three companies also are among the founding members of the Network Centric Operations Industry Consortium, NCOIC, which currently consists of 72 members and is developing a unified industry-wide approach that would enable sensors, communications and information systems to interact within a global network-centric environment.

Alliance Roles

The agreement calls for Boeing to serve as the prime lead systems integrator, combining its expertise as a military and intelligence platform provider with its proven success as a systems integrator. Cisco will provide Boeing with its industry-leading commercial off the shelf technologies (COTS) and services, including networking technologies, integrated solutions, support services as well as consulting and engineering resources. Additionally as part of the alliance, the Cisco Internet Business Solutions Group will provide network business and industry expertise, further accelerating the results and adoption of network-centric operations with mutual customers and at Boeing.

Working Together On TSAT Solution

Cisco and Boeing have a history of working together successfully. Most recently, under the TSAT program, the companies have started to develop a system design and demonstrate critical technologies for a secure, high-capacity global communications network serving the U.S. Department of Defense, NASA and the intelligence community. The system provides survivable, strategic communications services as well as new capabilities such as communications on the move for tactical users, and enhanced airborne intelligence, surveillance and reconnaissance connectivity. System design will be conducted at Boeing Satellite Systems (BSS), El Segundo, Calif. BSS has chosen Cisco Systems as one of its team members on the program. Cisco will be providing IP networking expertise and technologies to BSS.

Boeing's Cisco Converged Network

In addition to the alliance, Cisco will continue to be a strategically important supplier to Boeing Shared Services Group (SSG). Cisco is currently delivering on a multi-year contract for product and services announced in 2004, whereby Cisco is providing IP telephony and convergence solutions for use across the Boeing global enterprise, which includes more than 160,000 employees in 48 states and 70 countries. The converged network is an integral element of Boeing's network centric operations strategy and demonstrates its leadership.

About Boeing Integrated Defense Systems

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 $30.5 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; NASA's largest contractor; and a global leader in sustainment solutions and launch services.