Boeing [NYSE: BA] today announced that the Increment 1 capabilities of the U.S. Army’s Brigade Combat Team Modernization program have successfully completed their Production Readiness Review.

The review was conducted Oct. 27-29 at Boeing’s facility in Huntington Beach.

As the prime contractor, Boeing and Science Applications International Corp. (SAIC) [NYSE: SAI] are responsible for the development and fielding of Increment 1. The capabilities are planned to be fielded to seven Infantry Brigade Combat Teams beginning in 2011.

The review involved representatives from the Army, Boeing, SAIC, industry partners and other government agencies, including the Department of Defense.

It was the culmination of individual system production readiness reviews conducted over the past year and involved input from more than 20 key suppliers.

The production areas that were reviewed included management, production processes and integration, facilities tooling and test equipment, and product assurance for all Increment 1 capabilities.

“The Production Readiness Review demonstrated that our industry team is ready to enter Low-Rate Initial Production,” said Derek McLuckey, Increment 1 project manager for Boeing. “We are looking forward to the Milestone C production decision in December.”

Simultaneously, Boeing, SAIC, and their industry partners plan to submit a Low-Rate Initial Production contract proposal to the Army for Increment 1.

Developed under the Future Combat Systems program and now a key element of the Army’s Brigade Combat Team Modernization program, Increment 1 will provide soldiers with enhanced intelligence, surveillance, and reconnaissance capabilities, as well as increased survivability and lethality.

Initial capabilities include:

• Small Unmanned Ground Vehicle: a robotic system capable of reconnaissance missions in dangerous or difficult situations such as entering buildings, caves and tunnels
• Class I Unmanned Air Vehicle (UAV): a small, soldier-operated UAV that can hover for reconnaissance and surveillance while providing target acquisition
• Unattended Ground Sensors: multi-mode surveillance sensors for target detection, location and classification, with an imaging capability for identification
• Non-Line-of-Sight Launch System: an unmanned missile system capable of extended range targeting and precision attack
• Network Integration Kit: an integrated computer system that hosts the latest communications and radio systems and battle command software, providing the initial network connectivity needed to transfer sensor and communication data.

About Science Applications International Corp.

SAIC is a FORTUNE 500® scientific, engineering, and technology applications company that uses its deep domain knowledge to solve problems of vital importance to the nation and the world, in national security, energy and the environment, critical infrastructure, and health.

The company’s approximately 45,000 employees serve customers in the U.S. Department of Defense, the intelligence community, the U.S. Department of Homeland Security, other U.S. Government civil agencies and selected commercial markets.

Headquartered in McLean, Va., SAIC had annual revenues of $10.1 billion for its fiscal year ended January 31, 2009. For more information, visit saic.com. SAIC: From Science to Solutions®.

About Boeing Integrated Defense Systems

A unit of The Boeing Company, Boeing Integrated Defense Systems is one of the world’s largest space and defense businesses specializing in innovative and capabilities-driven customer solutions, and the world’s largest and most versatile manufacturer of military aircraft.

Headquartered in St. Louis, Boeing Integrated Defense Systems is a $32 billion business with 70,000 employees worldwide.

MEDIA CONTACT:

Matthew P. Billingsley, 703-647-1444
External Communications Manager
Brigade Combat Team Modernization
The Boeing Company
matthew.p.billingsley@boeing.com

Regen Wilson, 202-246-3011
Communications, Landforce Systems Operation
SAIC
regen.wilson@saic.com