BOEING TO MODIFY THREE ADDITIONAL MD-11 PASSENGER AIRPLANES TO FREIGHTERS FOR FEDEX EXPRESS; AERONAVALI TO PERFORM WORK

The Boeing Company announced today it has signed a contract with FedEx Express to modify three additional MD-11 passenger airplanes to freighters. Aeronavali, a Finmeccanica company coordinated by Alenia Aerospazio in Italy, will perform the modifications.

This order brings the total number of MD-11 conversions that Boeing will perform for FedEx Express to 41 [SSS1]firm and 47 options. Of the 41 firm orders, Boeing has completed 11 modifications for FedEx. A final decision has not been made on where the remaining airplanes will be converted.

Aeronavali has been selected to modify 10[jdj2] MD-11s to freighters and already has delivered three of the modified freighters. Boeing expects Aeronavali will complete the modification for the additional three MD-11 freighters in the third and fourth quarters of 2001. Aeronavali is a member of Boeing Airplane Services' international network of modification and engineering facilities.

"We are thrilled that FedEx continues to turn to Boeing Airplane Services to modify its MD-11 passenger airplanes to freighters," said Bob Avery, president of Boeing Airplane Services. "Aeronavali is a premier modification center and has been an excellent alliance member on the MD-11 conversion program."

An MD-11 Freighter can carry approximately 190,000 pounds (86,168 kg) of revenue payload with a range of 3,800 nautical miles (7,038 km).

Passenger-to-freighter modification involves primarily the removal of the passenger furnishings, installation of a side cargo door and installation of a cargo handling system. Modification typically takes about 90 to 120 days to complete.

With average revenues of around $200 million, Aeronavali employs approximately 1,700 people at its Venice, Naples and Brindisi facilities in Italy. For more than 50 years, the company has performed maintenance and modification work on military and commercial aircraft, including the DC-8, DC-10, MD-11, 727, 707, A300, ATR, Atlantic, G222, C130 and NATO E-3A "AWACS."

Boeing Airplane Services provides a full range of total service solutions for the world's passenger and cargo airlines. Offerings include engineering retrofit packages, avionics upgrades, in-flight entertainment systems integration, cabin management solutions, passenger-to-freighter conversions, recovery and repair services, and performance improvements for Boeing commercial airplanes. Boeing Airplane Services is a unit of the Boeing Commercial Aviation Services organization and, as part of The Boeing Company, has access to all the experience and technical capabilities of the world's largest aerospace company. More than 11,500 Boeing airplanes are in operation today around the world.