F15 K Offset Status George White Korea Country

F-15 K Offset Status George White Korea Country Manager Industrial Participation Programs Boeing/Integrated Defense Systems The Boeing Company Proprietary Information – use or disclosure of this information is subject to the restrictions on the title page or on the first page of this document. 1

ROK F-X Offset Goals • More than 70% of Main Contract Amount – Significant Increase over Guideline Amount of 30% • Technology Transfer – ~35% of Total – Acquire Technology to Independently Develop Indigenous Fighter by 2015 • Parts Manufacturing – ~40% of Total – Maintain Domestic Aerospace Industry: F -X Components, Commercial Aerostructures The Boeing Company Proprietary Information – use or disclosure of this information is subject to the restrictions on the title page or on the first page of this document. 2

ROK F-X Offset Goals (Cont’d) • Depot Maintenance – ~25% of Total – Acquire Essential Depot Maintenance Capability Not Provided in Main Contract All Projects & Beneficiaries Specified by ROK MND The Boeing Company Proprietary Information – use or disclosure of this information is subject to the restrictions on the title page or on the first page of this document. 3

F-15 K Offset Program Elements Military Aerostructures Commercial Aerostructures F-15 K Component Manufacturing Depot Maintenance Smart Structures Technology Transfer The Boeing Company Proprietary Information – use or disclosure of this information is subject to the restrictions on the title page or on the first page of this document. 4

F-15 K Offset Program Overview • $3. 3 B+ Total Negotiated Offset Value – 85% of Program Price, Excluding Engines • 30 Technology Transfer Projects / $1. 5 B Offset • 11 Parts Manufacturing Projects / $1. 3 B Offset • 2 Depot Maintenance Projects / $0. 5 B Offset • 12 Korean Beneficiaries – 5 Government – ADD, ROKAF, KIDA, DQAA, KARI – 7 Industry – KAI, KAA, Nex 1 Future (LG Innotek), Samsung Thales, Daewoo Heavy, WIA, Hanwha The Boeing Company Proprietary Information – use or disclosure of this information is subject to the restrictions on the title page or on the first page of this document. 5

F-15 K Negotiated Offset ($M) F-15 -Related Other $844 Tech. Transfer 25% $346 F-15 Wings/Fwds 10% $447 Depot Maintenance 13% $96 Depot Maintenance 3% $732 Comm’l/Apache 22% $665 Software Facility 20% $230 Suppliers 7% The Boeing Company Proprietary Information – use or disclosure of this information is subject to the restrictions on the title page or on the first page of this document. 6

Technology Transfer Technology Category Projects Completed by Year ‘ 04 ’ 05 ‘ 06 System Requirements Definition/Analysis ‘ 07 ‘ 08 1 1 ‘ 09 ‘ 10 Totals 2 Subsystem Design/Development • Air Vehicle 2 • Avionics 2 5 9 3 2 5 • Software • Armament System 1 Test & Evaluation Operations & Support Totals 1 1 1 4 2 1 2 5 1 1 4 9 1 9 6 1 1 4 1 30 The Boeing Company Proprietary Information – use or disclosure of this information is subject to the restrictions on the title page or on the first page of this document. 7

Environmental Test Facility The Boeing Company Proprietary Information – use or disclosure of this information is subject to the restrictions on the title page or on the first page of this document. 8

Electromagnetic Test Center The Boeing Company Proprietary Information – use or disclosure of this information is subject to the restrictions on the title page or on the first page of this document. 9

Parts Manufacturing Korean Beneficiary F-15 K Partner Offset Value KAI Boeing $1. 1 B F-15 K Flap & Aileron Components Korean Air Goodrich F-15 K Landing Gear Components WIA Goodrich Hanwha Parker/Boeing F-15 K Radar Components Nex 1 Future Raytheon F-15 K Head Up Display Nex 1 Future Kaiser Daewoo Heavy Honeywell F-15 K Electronic Countermeasures System Components Samsung Thales Northrop Grumman F-15 K RWR Components Samsung Thales BAE Systems Parts Manufacturing Project Commercial & Military Aerostructures F-15 K Flight Control/Arresting Hook Actuator Components F-15 K Embedded GPS/INS The Boeing Company Proprietary Information – use or disclosure of this information is subject to the restrictions on the title page or on the first page of this document. $230 M 10

1 st KAI-Produced Apache Fuselage The Boeing Company Proprietary Information – use or disclosure of this information is subject to the restrictions on the title page or on the first page of this document. 11

Depot Maintenance Beneficiaries Performance Period • Special Repair Shop ROKAF 2003 - 2005 • F-15 K Major Structural Repair & Flight Line Operations ROKAF 2003 - 2012 Projects The Boeing Company Proprietary Information – use or disclosure of this information is subject to the restrictions on the title page or on the first page of this document. 12

F-15 K Offset Program Status • $287. 0 M in Approved Offset Credit Through 2 Q’ 04 (8. 5% of Total) • Technology Transfer – 4 Projects Completed, 15 Projects Ongoing • Parts Manufacturing – All Subcontracts Finalized with Korean Partners – Delivery of Korean Manufactured Components Underway • Depot Maintenance – Special Repair Shop: P. O. ’s Placed for 32 of 36 Items; Delivery of Equipment Underway; Overseas Training Completed – Major Structural Repair: TAA to Be Finalized with the ROKAF by End of CY-’ 04 The Boeing Company Proprietary Information – use or disclosure of this information is subject to the restrictions on the title page or on the first page of this document. 13

ROK Offset Visitors to St. Louis Over 200 Visitors, Avg of 28 Per Month ’ 04 -’ 07 The Boeing Company Proprietary Information – use or disclosure of this information is subject to the restrictions on the title page or on the first page of this document. 14

F-15 K Offset Credit Plan The Boeing Company Proprietary Information – use or disclosure of this information is subject to the restrictions on the title page or on the first page of this document. 15

F-15 K Offset Program Summary • Program Is Underway and On-Track • Meets or Exceeds All ROK Requirements • Continuation of 50 -Year Partnership Between Boeing and Korea • Provides Tangible Benefits, Applicable to Indigenous Fighter & Other R&D Pursuits • Provides Near/Mid Term Revenues & Jobs; Longer Term Business Potential with Eagle Team • Boeing Will Deliver for Korea The Boeing Company Proprietary Information – use or disclosure of this information is subject to the restrictions on the title page or on the first page of this document. 16

Boeing Offset Track Record • Over $20 B in World-Wide Offset Commitments Completed On-Time or Ahead of Schedule • Boeing is Currently Implementing Over $10 B in Offset Programs – ~ 30 Programs in 20 Countries • Over 35 Campaigns Ongoing in Over 25 Countries Boeing Takes Its Offset Commitments Seriously The Boeing Company Proprietary Information – use or disclosure of this information is subject to the restrictions on the title page or on the first page of this document. 17