BOEING, MITSUBISHI ELECTRIC ANNOUNCE STRATEGIC ALLIANCE

PARIS, June 20, 2001 - Boeing [NYSE: BA] and Mitsubishi Electric Corporation officials announce their desire to broaden the cooperation between the two companies further by signing an agreement that includes space-based communications, air traffic management, multimedia, navigation, space and communications services, launch services, and space infrastructure markets

In the launch services segment, the agreement includes up to six Boeing Delta launches and names the Boeing Delta team as Mitsubishi Electric's preferred non-Japanese launch service provider.

"The success we've had in an extremely competitive market is a testament to the work our team has done to prepare the Delta IV for operation next year," said Gale Schluter, vice president and general manager of Boeing Expendable Launch Systems.

The agreement includes one firm Delta IV launch service order, up to five launches options, and extends from 2002 to 2007.

The new agreement is indicative of the partnerships the Delta IV program has been forging in the global marketplace.

"Over the past five years, Boeing has established a great working relationship with Mitsubishi Electric which has been evident in key programs such as Connexion by BoeingSM, the long term relationship with Boeing Satellite Systems, and other space related activities," said Dr. Hiroshi Kimura, general manager, Space Systems Division of Mitsubishi Electric. "As a result of our partnership, we have been able to enter into this launch service agreement and announce the Delta Launch Services team as our preferred non-Japanese launch service provider."

"By bringing an affordable service to our customers, we've been able to develop long term partnerships with many of the world's leading communications companies including Mitsubishi Electric," Schluter said. "And because we've matched our vehicle's capabilities, costs, and services to market needs, we are penetrating markets that we have not been able to address in the past."

The Delta IV family includes five variants capable of lifting 4,000 kg to 13,000 kg to geostationary transfer orbit. The vehicles are capable of launching single, dual, or multiple satellites in either 4-meter or 5-meter payload accommodations.

Subject to approval from both companies, the new launch service agreement is expected to be finalized later this year.

The Boeing Company, headquartered in Seattle, is the largest aerospace company in the world and the United States' leading exporter. It is the world's largest manufacturer of commercial jetliners and military aircraft, and the largest NASA contractor. The company's capabilities in aerospace also include rotorcraft, electronic and defense systems, missiles, rocket engines, launch vehicles, and advanced information and communication systems. The company has an extensive global reach with customers in 145 countries and manufacturing operations throughout the United States, Canada and Australia.

With 80 years of experience in providing reliable, high-quality products to both corporate clients and general consumers all over the world, Mitsubishi Electric Corporation (FTSE: 6503q.l) is a recognized world leader in the manufacture, marketing and sales of electrical and electronic equipment used in information processing and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation and construction. The company has operations in 34 countries and recorded consolidated group sales of over US$33BN in the year ended March 31, 2001. Additional information on Mitsubishi Electric is available at global.mitsubishielectric.com.