Rockwell Collins Receives $55 Million Production Option for C/KC-135 Global Air Traffic Management Upgrade

CEDAR RAPIDS, Iowa (July 23, 2002) - Rockwell Collins (NYSE:COL), a global leader in aviation electronics and communications, has received a $55 million initial production option as part of the U.S. Air Force C/KC-135 Global Air Traffic Management (GATM) program. If fully executed, the GATM program is worth a potential $700 million over the life of the program.

The production option follows a successful and on-schedule development program, culminating in the successful first flight of Collins Flight2 avionics on the prototype tanker/transport aircraft in April. The new contract includes delivery and installation of avionics for 50 of the 560 total KC-135 aircraft. Group A and B kit deliveries begin in December, with kit installations underway in January 2003.

"This production award validates Rockwell Collins' ability to effectively bring new technology and systems integration to the U.S. Air Force on time and on budget," said Greg Churchill, executive vice president and COO, Rockwell Collins Government Systems. "Our ability to leverage commercial technology for platforms such as the KC-135, combined with our focus on execution, excellence and our long-term relationship with the U.S. Air Force, have allowed this program to stay on schedule."

As a system integrator and longtime Air Force supplier, Rockwell Collins is well positioned to provide GATM technology that prepares aircraft for changing communication/navigation/surveillance and air traffic management (CNS/ATM) requirements as the airspace transitions to Free Flight operation.

Rockwell Collins Flight2 avionics augment and enhance aircraft operational capabilities by providing an open systems architecture that integrates flight operations with navigation and guidance functions, and provides growth required for the future. The GATM upgrade allows the KC-135 to have unrestricted access to civil airspace by providing required navigation performance compliance to less than 1.0 nautical mile, controller pilot data link communication (CPDLC) and automatic dependent surveillance (ADS).

The Rockwell Collins Flight2 open architecture ensures interface with multiple products, such as weather radar, head-up guidance systems, and flight and situational awareness displays. It increases cockpit efficiency, safety and user-friendliness, while providing a plug-and-play capability that provides growth for evolving requirements. Flight2 avionics supporting the GATM program include the CMU-900 for data links, an Ethernet-based processing center IPC -7010 with flight management capabilities, the SAT-2000 SATCOM radio, the GNLU-955M Multi Mode Receiver and data link modifications to the ARC-190 HF and ARC-210 V/UHF radios.

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