Boeing Commits $52 Million to Canada's Atlantic Region



    HALIFAX, Jan. 22 /CNW Telbec/ - The Boeing Company (NYSE:   BA) today
announced that it has committed to providing contracts worth $52 million to
companies in Canada's Atlantic region.
    The announcement follows the Canadian government's 2007 order for
four C-17 Globemaster IIIs, the first two of which already are in service with
Canadian Forces.
    Speaking today at an event hosted by Industry Canada in Halifax, Mark
Kronenberg, Boeing Integrated Defense Systems vice president for International
Business Development, explained that Boeing was well on track for meeting the
Canadian government's Industrial Benefits (IB) policy.
    "Boeing will match every dollar spent by the Canadian government in
acquiring its C-17 fleet by partnering with and issuing contracts to companies
in Canada," said Kronenberg. "This will result in long-term, high-value jobs
for Canadians and will further embed Boeing as a long-term partner with
Canadian industry, particularly with our partners here in the Atlantic
region."
    As part of the C-17 acquisition contract, Boeing agreed to match the
purchase price of the four aircraft with dollar-for-dollar investments back
into the Canadian economy through a C-17 IB program coordinated by Industry
Canada. Boeing already has identified more than 66 percent of its total C-17
IB program obligations.
    Boeing will identify the remaining 34 percent of IB obligations over the
next three years. Boeing also agreed to a collateral agreement that provides
further industry benefits worth $750 million over 20 years for the in-service
support of the C-17 fleet.
    To date, Boeing has signed contracts with several partners based in the
Atlantic region, including:

    
    - IMP Aerospace: F/A-18 wire bundles
    - Wiebel Aerospace (subcontract from Goodrich): Direct work on C-17
    - Memorial University of Newfoundland: Investment for establishment of an
      autonomous systems laboratory
    

    These supplier agreements complement Boeing's already significant
involvement in Atlantic Canada. Over the years, Boeing has partnered with many
suppliers in the region to provide goods and services for the company's major
business units - Boeing Commercial Airplanes and Boeing Integrated Defense
Systems. As the Canadian Forces continue to modernize their defense systems,
through efforts such as the Medium-Heavy Lift Helicopter program, Boeing
anticipates that it will sign additional contracts to further expand its
supplier base in the region.
    The C-17 Globemaster III provides Canada with a critical new airlift
capability to meet its international commitments. The C-17's ability to fly
long distances and land in remote airfields in land-locked regions make it the
right airplane for Canadian humanitarian, peacekeeping and military missions,
domestically and abroad. The aircraft already has been used to support
Canadian Forces serving in Afghanistan.

    Boeing is a major contributor to the Canadian economy, generating
approximately $1 billion in business annually. Boeing employs more than
1,400 highly-skilled employees in Quebec, British Columbia and Manitoba who
work in support of the company's major business units. Canada also is home to
the third-largest international supplier base for Boeing, including many
high-quality suppliers spanning every region of the country.

    A unit of The Boeing Company, Boeing Integrated Defense Systems is one of
the world's largest space and defense businesses specializing in innovative
and capabilities-driven customer solutions. Headquartered in St. Louis, Boeing
Integrated Defense Systems is a $32.4 billion business with 72,000 employees
worldwide.




For further information:

For further information: Damien Mills, Boeing Integrated Defense
Systems, (562) 797-1053, damien.mills@boeing.com; Martin Sampson,
Fleishman-Hillard Canada, (613) 238 -2090 x 351, martin.sampson@fleishman.ca

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