Rockwell Collins to Produce U.S. Army's JTRS as Part of Boeing Team; Anticipates More Than $2 Billion for Cluster 1 Program

Rockwell Collins to Produce U.S. Army's JTRS as Part of Boeing Team; Anticipates More Than $2 Billion for Cluster 1 Program

CEDAR RAPIDS, Iowa (June 24, 2002) - Rockwell Collins (NYSE:COL), a global leader in aviation electronics and communications, as a member of The Boeing Team, is one of two producers of the industry's first Joint Tactical Radio System (JTRS) compliant software-defined radio communications system for the U.S. JTRS Cluster 1 program. Rockwell Collins is applying cutting edge communication technologies to help the Army meet its force transformation objectives.

The overall program is worth a potential $7 billion to The Boeing Team over the life of the Cluster 1 program. Rockwell Collins anticipates more than $2 billion in contracts over the life of the program. Rockwell Collins' initial contract award, when fully funded, will be $110 million, which encompasses the system development and demonstration phase expected to occur over the next three years. The company anticipates approximately $300 million in contracts to be exercised for low-rate initial production in the 2005-2006 time period. Full-rate production will commence in 2007 and is anticipated to continue for 12 years.

"This is an extremely significant win, placing Rockwell Collins in a leadership role to redefine military communications," said Clay Jones, chairman, president and CEO, Rockwell Collins. "Our solution answers the military's need for U.S., joint and allied force interoperability. Additionally, it strengthens our position to serve all military domains across the entire operational frequency spectrum."

The JTRS is a family of software programmable tactical radios that will provide the armed forces with voice, data and video capability. The state-of-the-art radios are based on a common Software Communication Architecture (SCA) to ensure interoperability with existing systems and simplify future technology upgrades.

The Department of Defense sponsors the JTRS program, the joint service standard for all new tactical communications systems, and is responsible for defining JTRS hardware and software configurations. JTRS will be awarded in multiple clusters that will be integrated onto selected maritime, airborne, fixed-station, ground mobile, manpack and hand-held platforms.

"Rockwell Collins is proud to be part of the winning team and we are committed to the success of this revolutionary approach to military communications," said Greg Churchill, executive vice president and COO, Rockwell Collins Government Systems. "By providing the U.S. Army with a fast, reliable exchange of information within an expanded communication network, we will enhance situational awareness and improve overall mission effectiveness of all ground and Army airborne operations."

The JTRS radio is a layered, software reprogrammable open architecture system. Rockwell Collins unique packaging concept functionally partitions modules, enabling flexibility of operation, adaptability for future growth and substantially improved mission effectiveness.

As prime contractor, The Boeing Company is responsible for the overall systems architecture and design, systems engineering, communications integration and program management. Rockwell Collins and BAE SYSTEMS, with support from Harris Corporation, have responsibility for developing and producing the ground vehicular and airborne systems for the U.S. Army. TRW will support Boeing in the systems engineering effort and is responsible for the integration of ground platforms

Rockwell Collins has been prominent in all steps of JTRS development. The company is a member of the Modular Software Radio Consortium that previously developed the JTRS Software Communication Architecture (SCA) defined under the JTRS Step 1 and Step 2A contracts with the JTRS Joint Program Office. Under the Step 2A contract, Rockwell Collins developed a JTRS prototype and implemented the JTRS-compliant High Frequency-Automatic Link Establishment (HF-ALE) waveform software application with the Collins-developed SCA Core framework. In addition, Rockwell Collins successfully demonstrated an ability to port the waveform to another manufacturer's hardware. Under the Step2B contract, Rockwell Collins implemented Link 16 on an SCA-compliant platform and demonstrated interoperability with legacy Link 16 equipment.

Rockwell Collins provides design, production and support of aviation electronics and communications for government and commercial customers worldwide. Additional information is available at www.rockwellcollins.com.

This press release contains statements (including certain projections associated with Rockwell Collins' efforts on the design, development and production phases of the JTRS Cluster 1 program) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including, but not limited to U.S. government spending and budgetary policies; potential cancellation or amendments of JTRS Cluster 1 awards or orders by the U.S. Army; challenges in the design, development and production of advanced technologies; and competitive product and pricing pressures; as well as other risks and uncertainties, including but not limited to those detailed from time to time in the Rockwell Collins Securities and Exchange Commission filings, including without limitation the Rockwell Collins Annual Report on Form 10-K for the year ended September 30, 2001 and its quarterly reports on Form 10-Q for the quarters ended December 31, 2001 and March 31, 2002. These forward-looking statements are made only as of the date hereof.

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