Boeing-Lockheed EELV Joint Venture

This is news. The new joint venture will be headquartered in
Denver, "with most engineering and administrative activities
consolidated" there, but "major assembly and integration
operations will be located primarily at Boeing's manufacturing
and assembly facility in Decatur, Ala". I'm not sure what
this means for Lockheed's Atlas production line.

- Ed Kyle

------------------------------------------------
Press Release Source: The Boeing Company; Lockheed Martin Corporation

Boeing, Lockheed Martin to Form Launch Services Joint Venture
Monday May 2, 5:00 pm ET
-- Lowers Cost to the Government
-- Maintains Assured Access to Space
-- Enhances Reliability
-- Provides Full Cost Visibility

CHICAGO, and BETHESDA, Md., May 2 /PRNewswire-FirstCall/ -- The Boeing
Company (NYSE: BA - News) and Lockheed Martin Corporation (NYSE: LMT -
News) have entered into an agreement to create a joint venture that
will combine the production, engineering, test and launch operations
associated with U.S. government launches of Boeing Delta and Lockheed
Martin Atlas rockets. The joint venture, named United Launch Alliance,
will reduce the cost of meeting the critical national security and NASA
expendable launch vehicle needs of the United States.

"It has become increasingly clear that an alliance of launch
capabilities is essential to meet the space communications,
surveillance and reconnaissance needs of the 21st century, and to
assure access to space," said Lockheed Martin Chairman, President and
Chief Executive Officer Robert J. Stevens. "This combination will
permit our national customers to achieve their mission objectives while
reflecting current budget pressures and providing the government with
full cost visibility."

"Both of our companies have developed versions of the Evolved
Expendable Launch Vehicle (EELV) in collaboration with the Air Force
and have flown them successfully," said Boeing President, Chief
Executive Officer and Chief Financial Officer James A. Bell. "By
joining together we are convinced that we can provide the customer with
assured access to space at the lowest possible cost while ensuring
enhanced reliability by eliminating duplicate infrastructure and
bringing experts from both companies to focus on mission assurance."

United Launch Alliance will be structured as a 50-50 joint venture
between Boeing and Lockheed Martin -- combining services currently
provided separately by Boeing Integrated Defense Systems' Expendable
Launch Systems division and by Lockheed Martin's Space Systems Company
-- for launches of each company's respective rockets. Based upon
initial estimates, annual savings to the government resulting from the
combination are expected to be approximately $100 - $150 million.

Michael C. Gass, vice president and general manager of Lockheed Martin
Space Transportation, has been appointed United Launch Alliance
president and chief executive officer and Daniel J. Collins, vice
president Boeing Expendable Launch Systems will serve as chief
operating officer. In addition, a Boeing executive will be appointed
chief financial officer and a Lockheed Martin executive will be named
controller at a later date. These leaders will report to a six-member
board of directors, with each company appointing three directors.

"The Lockheed Martin and Boeing employees who will be part of this new
launch provider understand the enduring needs of our Air Force and NASA
customers for mission success," said Gass. "They bring together a
remarkable record of accomplishment in launching national-security and
scientific space payloads."

"The continued performance of Boeing and Lockheed Martin employees as a
new team going forward -- from the engineering center to the factory
floor to the launch pad -- will offer even greater reliability and
mission assurance to the customer," said Collins.

The agreement, which is subject to government and regulatory approval
in the United States and internationally, also stipulates that the
companies will immediately request an order from the U.S. District
Court suspending all activity in the pending civil litigation related
to a previous competition for launches under the Air Force EELV
program. Simultaneous with the closing of the transaction, the parties
will dismiss all claims against each other.

"The mission of this joint venture is to reliably meet critical launch
needs, so it is imperative that the two teams come together as one with
all lingering issues resolved," said Stevens. "When agreement was
reached to form this alliance, both parties agreed that they were ready
to move forward with a clean slate and an undistracted focus on mission
success."

Under the terms of the joint venture, Boeing's Delta and Lockheed
Martin's Atlas rockets will continue to be available as alternatives on
individual launch missions. This will ensure that government customers
are able to make decisions that meet the goal of assured access to
space with two families of launch vehicles. Upon vehicle selection, the
United Launch Alliance team will carry out the mission, including
vehicle integration and payload processing.

Lockheed Martin's International Launch Services (including Proton) and
Boeing Launch Services (including Sea Launch) are not included in the
joint venture. These entities will continue to sell launch services to
non-U.S. government customers. Additionally, work the companies are
performing independently in support of NASA-sponsored Space
Shuttle-Derived Launch Vehicle concepts for future space exploration
initiatives will be excluded from this joint venture.

United Launch Alliance headquarters will be established in Denver with
most engineering and administrative activities consolidated at that
location's existing Lockheed Martin Space Systems Company facilities.
Major assembly and integration operations will be located primarily at
Boeing's manufacturing and assembly facility in Decatur, Ala. As part
of the joint venture, Boeing's and Lockheed Martin's launch facilities
at Cape Canaveral Air Force Station in Florida and Vandenberg Air Force
Base in California will provide flexibility for meeting the
requirements for East and West Coast launches.

United Launch Alliance is expected to have about 3,800 total employees
at sites in Colorado, Alabama, Florida, California and Texas. It is
anticipated that consolidation of the two organizations eventually will
result in the elimination of some undetermined number of positions. A
range of services will be made available to support those employees
transferring to new locations to work with United Launch Alliance.

Completion of the transaction is expected in late 2005 at which time
United Launch Alliance operations would begin.

Morgan Stanley served as financial advisor to Boeing and JP Morgan
served as financial advisor to Lockheed Martin.

Safe Harbor Statement / Forward-Looking Statements

Certain statements contained in this press release are considered
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, and it is both companies'
intent that such statements be protected by the safe harbor created
thereby. Forward-looking statements include, but are not limited to
statements regarding: (1) the expected closing date of the transaction;
(2) the expected costs savings arising out of the transaction; (3) the
ability to quantify and demonstrate cost savings; (4) the complexities
of successfully integrating two workforces; (5) the difficulty in
retaining critical skill employees; (6) uncertainties involved in
advanced technological products and services; and (7) future
performance, reliability and mission assurance. These forward-looking
statements are subject to a number of risks, uncertainties and other
factors that could cause actual results to differ materially from
future results expressed or implied by such forward-looking statements.
Potential risks and uncertainties include, but are not limited to: (a)
the risk that the transaction may close more slowly than expected or
not at all; (b) the risk that the cost savings arising out of the
transaction may be less than anticipated, and (c) other risks and
uncertainties detailed from time to time in each company's filings with
the Securities and Exchange Commission. All information in this release
is as of May 2, 2005. Both companies disclaim any duty to update
forward-looking statements to reflect subsequent events, actual results
or changes in expectations.


Source: The Boeing Company; Lockheed Martin Corporation

"Ed Kyle" wrote in news:1115070353.276943.85220
@z14g2000cwz.googlegroups.com:

This is news. The new joint venture will be headquartered in
Denver, "with most engineering and administrative activities
consolidated" there, but "major assembly and integration
operations will be located primarily at Boeing's manufacturing
and assembly facility in Decatur, Ala". I'm not sure what
this means for Lockheed's Atlas production line.


Okay, my mind's boggled. The Boeing facility certainly has
excess capability, but their equipment's designed for Delta IV's
aluminum skin, not Atlas' stainless steel. Wasn't Delta II
moved to Decatur as well?

I wonder what this will mean for future hardware and heavy
lift? Will there be a convergance of technologies, or will
one of the two designs be selected?

--Damon

Ed Kyle wrote:
This is news. The new joint venture will be headquartered in
Denver, "with most engineering and administrative activities
consolidated" there, but "major assembly and integration
operations will be located primarily at Boeing's manufacturing
and assembly facility in Decatur, Ala". I'm not sure what
this means for Lockheed's Atlas production line.

snip press release


Early 1990s:

Air Force/Government: "It is strategic for us to have more than one
EELV launch services provider."

Boeing: "Okay, here's our Delta IV!"
LockMart: "Okay, here's our Atlas V!"
Air Force/Government: "One, Two... Hooray!"

(time passes...)

May 2, 2005:

Boe & Lock's Mart: "Hi, we're your new one-stop launch services provider!"
Air Force/Government, Reed S: "WTF?"


--
Reed Snellenberger
GPG KeyID: 5A978843
rsnellenberger-at-houston.rr.com

"Damon Hill" wrote in message
31...
"Ed Kyle" wrote in news:1115070353.276943.85220
@z14g2000cwz.googlegroups.com:

This is news. The new joint venture will be headquartered in
Denver, "with most engineering and administrative activities
consolidated" there, but "major assembly and integration
operations will be located primarily at Boeing's manufacturing
and assembly facility in Decatur, Ala". I'm not sure what
this means for Lockheed's Atlas production line.


Okay, my mind's boggled. The Boeing facility certainly has
excess capability, but their equipment's designed for Delta IV's
aluminum skin, not Atlas' stainless steel. Wasn't Delta II
moved to Decatur as well?

Atlas V booster has aluminum skin. You're thinking of the older Atlases with
stainless steel balloon tanks. The Centaur stage is still stainless steel.

Murray Anderson


I wonder what this will mean for future hardware and heavy
lift? Will there be a convergance of technologies, or will
one of the two designs be selected?

--Damon

I wonder what Lockheed gets in exchange for dropping its lawsuit against
Boeing. Since this venture doesn't include commercial Atlas launches (or
Delta IV, if any), it's hard to see what the savings are.

Murray Anderson

"Ed Kyle" wrote in message
ups.com...
This is news. The new joint venture will be headquartered in
Denver, "with most engineering and administrative activities
consolidated" there, but "major assembly and integration
operations will be located primarily at Boeing's manufacturing
and assembly facility in Decatur, Ala". I'm not sure what
this means for Lockheed's Atlas production line.

- Ed Kyle

------------------------------------------------
Press Release Source: The Boeing Company; Lockheed Martin Corporation

Boeing, Lockheed Martin to Form Launch Services Joint Venture
Monday May 2, 5:00 pm ET
-- Lowers Cost to the Government
-- Maintains Assured Access to Space
-- Enhances Reliability
-- Provides Full Cost Visibility

CHICAGO, and BETHESDA, Md., May 2 /PRNewswire-FirstCall/ -- The Boeing
Company (NYSE: BA - News) and Lockheed Martin Corporation (NYSE: LMT -
News) have entered into an agreement to create a joint venture that
will combine the production, engineering, test and launch operations
associated with U.S. government launches of Boeing Delta and Lockheed
Martin Atlas rockets. The joint venture, named United Launch Alliance,
will reduce the cost of meeting the critical national security and NASA
expendable launch vehicle needs of the United States.

"It has become increasingly clear that an alliance of launch
capabilities is essential to meet the space communications,
surveillance and reconnaissance needs of the 21st century, and to
assure access to space," said Lockheed Martin Chairman, President and
Chief Executive Officer Robert J. Stevens. "This combination will
permit our national customers to achieve their mission objectives while
reflecting current budget pressures and providing the government with
full cost visibility."

"Both of our companies have developed versions of the Evolved
Expendable Launch Vehicle (EELV) in collaboration with the Air Force
and have flown them successfully," said Boeing President, Chief
Executive Officer and Chief Financial Officer James A. Bell. "By
joining together we are convinced that we can provide the customer with
assured access to space at the lowest possible cost while ensuring
enhanced reliability by eliminating duplicate infrastructure and
bringing experts from both companies to focus on mission assurance."

United Launch Alliance will be structured as a 50-50 joint venture
between Boeing and Lockheed Martin -- combining services currently
provided separately by Boeing Integrated Defense Systems' Expendable
Launch Systems division and by Lockheed Martin's Space Systems Company
-- for launches of each company's respective rockets. Based upon
initial estimates, annual savings to the government resulting from the
combination are expected to be approximately $100 - $150 million.

Michael C. Gass, vice president and general manager of Lockheed Martin
Space Transportation, has been appointed United Launch Alliance
president and chief executive officer and Daniel J. Collins, vice
president Boeing Expendable Launch Systems will serve as chief
operating officer. In addition, a Boeing executive will be appointed
chief financial officer and a Lockheed Martin executive will be named
controller at a later date. These leaders will report to a six-member
board of directors, with each company appointing three directors.

"The Lockheed Martin and Boeing employees who will be part of this new
launch provider understand the enduring needs of our Air Force and NASA
customers for mission success," said Gass. "They bring together a
remarkable record of accomplishment in launching national-security and
scientific space payloads."

"The continued performance of Boeing and Lockheed Martin employees as a
new team going forward -- from the engineering center to the factory
floor to the launch pad -- will offer even greater reliability and
mission assurance to the customer," said Collins.

The agreement, which is subject to government and regulatory approval
in the United States and internationally, also stipulates that the
companies will immediately request an order from the U.S. District
Court suspending all activity in the pending civil litigation related
to a previous competition for launches under the Air Force EELV
program. Simultaneous with the closing of the transaction, the parties
will dismiss all claims against each other.

"The mission of this joint venture is to reliably meet critical launch
needs, so it is imperative that the two teams come together as one with
all lingering issues resolved," said Stevens. "When agreement was
reached to form this alliance, both parties agreed that they were ready
to move forward with a clean slate and an undistracted focus on mission
success."

Under the terms of the joint venture, Boeing's Delta and Lockheed
Martin's Atlas rockets will continue to be available as alternatives on
individual launch missions. This will ensure that government customers
are able to make decisions that meet the goal of assured access to
space with two families of launch vehicles. Upon vehicle selection, the
United Launch Alliance team will carry out the mission, including
vehicle integration and payload processing.

Lockheed Martin's International Launch Services (including Proton) and
Boeing Launch Services (including Sea Launch) are not included in the
joint venture. These entities will continue to sell launch services to
non-U.S. government customers. Additionally, work the companies are
performing independently in support of NASA-sponsored Space
Shuttle-Derived Launch Vehicle concepts for future space exploration
initiatives will be excluded from this joint venture.

United Launch Alliance headquarters will be established in Denver with
most engineering and administrative activities consolidated at that
location's existing Lockheed Martin Space Systems Company facilities.
Major assembly and integration operations will be located primarily at
Boeing's manufacturing and assembly facility in Decatur, Ala. As part
of the joint venture, Boeing's and Lockheed Martin's launch facilities
at Cape Canaveral Air Force Station in Florida and Vandenberg Air Force
Base in California will provide flexibility for meeting the
requirements for East and West Coast launches.

United Launch Alliance is expected to have about 3,800 total employees
at sites in Colorado, Alabama, Florida, California and Texas. It is
anticipated that consolidation of the two organizations eventually will
result in the elimination of some undetermined number of positions. A
range of services will be made available to support those employees
transferring to new locations to work with United Launch Alliance.

Completion of the transaction is expected in late 2005 at which time
United Launch Alliance operations would begin.

Morgan Stanley served as financial advisor to Boeing and JP Morgan
served as financial advisor to Lockheed Martin.

Safe Harbor Statement / Forward-Looking Statements

Certain statements contained in this press release are considered
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, and it is both companies'
intent that such statements be protected by the safe harbor created
thereby. Forward-looking statements include, but are not limited to
statements regarding: (1) the expected closing date of the transaction;
(2) the expected costs savings arising out of the transaction; (3) the
ability to quantify and demonstrate cost savings; (4) the complexities
of successfully integrating two workforces; (5) the difficulty in
retaining critical skill employees; (6) uncertainties involved in
advanced technological products and services; and (7) future
performance, reliability and mission assurance. These forward-looking
statements are subject to a number of risks, uncertainties and other
factors that could cause actual results to differ materially from
future results expressed or implied by such forward-looking statements.
Potential risks and uncertainties include, but are not limited to: (a)
the risk that the transaction may close more slowly than expected or
not at all; (b) the risk that the cost savings arising out of the
transaction may be less than anticipated, and (c) other risks and
uncertainties detailed from time to time in each company's filings with
the Securities and Exchange Commission. All information in this release
is as of May 2, 2005. Both companies disclaim any duty to update
forward-looking statements to reflect subsequent events, actual results
or changes in expectations.


Source: The Boeing Company; Lockheed Martin Corporation

On Tue, 03 May 2005 00:12:08 GMT, Reed Snellenberger
wrote:

Boe & Lock's Mart: "Hi, we're your new one-stop launch services provider!"
Air Force/Government, Reed S: "WTF?"

Does this really come as such a surprise? With more and more
businesses being absorbed into 'Big-Box' retail chains, this is merely
another step in that direction. A misguided step, maybe, but not a
trend-setting one by any assessment.

Murray Anderson wrote:
I wonder what Lockheed gets in exchange for dropping its lawsuit
against
Boeing. Since this venture doesn't include commercial Atlas launches
(or
Delta IV, if any), it's hard to see what the savings are.


Maybe they get to skip devloping Atlas V Heavy -
and get to divide the Delta IV Heavy launch
services profits instead?

- Ed Kyle

"Ed Kyle" wrote in message
oups.com...
Murray Anderson wrote:
I wonder what Lockheed gets in exchange for dropping its lawsuit
against
Boeing. Since this venture doesn't include commercial Atlas launches
(or
Delta IV, if any), it's hard to see what the savings are.


Maybe they get to skip devloping Atlas V Heavy -
and get to divide the Delta IV Heavy launch
services profits instead?

That was the first one that came to my mind.

The others whe
Is Lockheed having a hard time getting more engines from the Russians?
If so a deal with Boeing would give them a bargaining chip.
Lockheed wants to use 5 meter rockets for its next size up Boeing already
has that.
Lockheed might be able to get out of Vandenberg.

"Douglas Holmes" wrote in message
news:9DIde.326$8e4.98@trnddc09...

"Ed Kyle" wrote in message
oups.com...
Murray Anderson wrote:
I wonder what Lockheed gets in exchange for dropping its lawsuit
against
Boeing. Since this venture doesn't include commercial Atlas launches
(or
Delta IV, if any), it's hard to see what the savings are.


Maybe they get to skip devloping Atlas V Heavy -
and get to divide the Delta IV Heavy launch
services profits instead?

That was the first one that came to my mind.

The others whe
Is Lockheed having a hard time getting more engines from the Russians?
If so a deal with Boeing would give them a bargaining chip.
Lockheed wants to use 5 meter rockets for its next size up Boeing already
has that.
Lockheed might be able to get out of Vandenberg.


Energomash is selling the engines for profit. This must be its biggest
moneymaker.
It's possible that Lockheed wants to get out of producing them in the U.S.

Murray Anderson

Damon Hill wrote:
"Ed Kyle" wrote in
news:1115070353.276943.85220
@z14g2000cwz.googlegroups.com:

This is news. The new joint venture will be headquartered in
Denver, "with most engineering and administrative activities
consolidated" there, but "major assembly and integration
operations will be located primarily at Boeing's manufacturing
and assembly facility in Decatur, Ala". I'm not sure what
this means for Lockheed's Atlas production line.


Okay, my mind's boggled. The Boeing facility certainly has
excess capability, but their equipment's designed for Delta IV's
aluminum skin, not Atlas' stainless steel. Wasn't Delta II
moved to Decatur as well?

I wonder what this will mean for future hardware and heavy
lift? Will there be a convergance of technologies, or will
one of the two designs be selected?


According to:

"http://rockymountainnews.com/drmn/business/article/0,1299,DRMN_4_3747251,00.html"

"The joint venture - to be named United Launch Alliance -
will be headquartered at Lockheed's Waterton Canyon facilities
in Jefferson County, the companies said Monday. ...
It will result in a net increase of jobs at the sprawling
facilities, although Lockheed will discontinue its
half-century-old rocket production operations there."

No more rocket production at Waterton Canyon. Wow.
Lockheed opened a new production building there
just a few years ago.

But what is more amazing to me is that Lockheed is
saying that Waterton Canyon will *gain jobs* by
shutting down production in favor of serving as a
headquarters.

This seems symbolic of what is happening to U.S.
industry in general - although production usually
moves to China instead of Alabama.

I wonder how many of those Atlas production
workers who are offered the chance will give up
their Colorado homes to move to Alabama.

I've got to believe that joint production will
have to lead to the elimination of certain
EELV models. We probably are not going to see
Atlas V Heavy, for example. We might see some
of the EELV Medium designs dropped.

- Ed Kyle