ILFC ANNOUNCES BOEING 777 AND NEXT-GENERATION 737 JETLINER AGREEMENT

The Boeing Company confirmed today that International Lease Finance Corporation (ILFC), a unit of American International Group, has committed to order 40 jetliners, including eight new Boeing 777 Longer-Range Derivatives and 25 777-200ERs (extended range).

One of the world's largest lessors, ILFC also announced commitments for seven Next-Generation 737s, which will bring the number of Next-Generation 737s ordered by ILFC to 211. Delivery of the 777 models is scheduled for 2002 through 2009, while the 737s will be delivered between 2003 and 2005. When a definitive agreement is signed, ILFC orders of Boeing jetliners will total 644 aircraft.

"We're particularly excited about the new longer-range 777 models, which will provide unsurpassed range with higher speeds and superior passenger comfort -- important features for today's traveler," said Steven Udvar-Hazy, president and chief executive officer - ILFC. "Boeing 777 and Next-Generation 737 airplanes have proven very popular with our airline customers, earning a solid return."

ILFC was the first leasing company to order the Boeing 777, and with this announcement, has now committed to a total of 67 of the advanced technology twinjets. ILFC has placed 777s with China Southern, Air Europe Italy, Aeroflot, Continental, Air France and Emirates, among others.

"We're very pleased that ILFC has chosen these advanced technology models to provide to its customers around the world the very best capability and value in commercial airplanes," said Alan Mulally, president -- Boeing Commercial Airplanes. "Our new 777 and 737 airplanes are the best sellers in their classes, combining high reliability and outstanding performance with passenger comfort."

"We have a long and successful relationship with ILFC, covering many years and many airplane models, " added Seddik Belyamani, executive vice-president of Sales and Marketing for Boeing Commercial Airplanes. "The superior operating economics of these airplanes make them great additions to the ILFC fleet."

ILFC, based in Los Angeles, has the world's largest portfolio of aircraft in terms of asset value. A Boeing customer since 1977, with an order for a single 737-200, ILFC has since ordered more models of Boeing jetliners than any other customer, including the 727,757-200, and multiple models of the 737, 747, 767, MD-11, MD-80 and 777.

The Boeing 777 is the world's most technologically advanced commercial airplane, offering the best in passenger comfort. The 777-200ER was first delivered in February 1997 and is capable of flying up to 7,700 nautical miles (14,260 km).

The 777-200 and 777-300 Longer-Range Derivatives, launched in February 2000, bring the comfort and economic advantages of the current 777 to non-stop routes that have never before been possible.

The Next-Generation 737 program is the best -selling new commercial airplane in history, with more than 1,600 ordered since the program was launched in November 1993. On average, more than 1,000 737s are in the air at any one time and a 737 takes off every 5.5 seconds somewhere in the world.