BOEING BUSINESS JETS ANNOUNCES TWO NEW AUTHORIZED SERVICE CENTERS IN THE UNITED STATES AND EUROPE

In a further step to provide unsurpassed service and support to customers around the world, Boeing Business Jets today announced it has signed service contracts with Associated Air Center Inc. and Jet Aviation Management AG.

Able to perform warranty work on behalf of Boeing on the Boeing Business Jet (BBJ), the two companies will be designated as BBJ Authorized Warranty Repair Facilities and BBJ Factory Authorized Service Centers. The service centers also will provide other maintenance, repair and overhaul services as required. Both companies have extensive experience with Boeing Next-Generation 737 airplanes as well as VIP airplane outfitting capabilities.

"This decision was based on feedback from our customers who wanted better global access to more facilities authorized by Boeing Business Jets," said Boeing Business Jets Vice President - Chief Operating Officer Thomas Lindberg. "We've worked successfully with these two companies for several years and are pleased to be associated with them. We feel that they will serve BBJ operators well in this new role."

Associated Air's Dallas facility will serve as the U.S. service center while Jet Aviation facilities in Basel and Geneva, Switzerland, will be responsible for providing international services. Associated Air, a Piedmont Hawthorne company, has been active in outfitting and maintaining airplanes for more than 50 years. Jet Aviation, founded in Switzerland in 1967, provides maintenance and outfitting to customers around the world.

Designed for corporate and VIP applications, the BBJ is a special, high-performance derivative of the Next-Generation 737-700. The addition of auxiliary fuel tanks provides owners with a business jet platform having a maximum range capability of 6,200 nautical miles (11,482 kilometers), while requiring less than 6,000 feet (1,829 meters) of runway.

With cruising speeds of up to .82 Mach - equivalent to a ground speed of 550 miles per hour - the BBJ can serve such routes as Los Angeles to London or Paris, New York to Buenos Aires, Brazil, or London to Johannesburg, South Africa. The same CFM56-7 engines used on the Next-Generation 737 commercial airplanes power the BBJ.

The BBJ 2, announced in October 1999, is based on the 737-800. It has 25 percent more interior space and twice the luggage space of the BBJ. Production of the first BBJ 2 began in September 2000, with first "green" (no interior or paint) delivery scheduled for early this year.

The BBJ and BBJ 2 provide unsurpassed levels of space, comfort and utility and are backed by a top-notch product support program with dedicated field service representatives around the world.

Boeing Business Jets is a joint venture with General Electric launched in July 1996 to respond to market demand for a larger, more capable business airplane that can fly more than 6,000 nautical miles. Since the program's inception, there have been 51 green BBJs delivered, and there currently are 24 completed BBJs in service.