Aviall Is Awarded Ten-Year Extension of Model 250 Contract

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DALLAS, Jan. 10 // -- Aviall, Inc., a subsidiary of The Boeing Company (NYSE: BA) announced that it has been awarded an early renewal of its ten-year Model 250 exclusive worldwide aftermarket agreement with Rolls-Royce. Although the existing ten-year agreement is not due to expire until December 31, 2009, Rolls-Royce, has requested and Aviall agreed to extend the existing agreement until 2019.

    "This partnership between Rolls-Royce and Aviall has provided the kind of win-win solution that keeps companies on top in a competitive, demanding and cost-conscious world," said Paul E. Fulchino, Aviall's president and chief executive officer. "This agreement utilizes Aviall core competencies in marketing, sales, customer service, forecasting, local warehousing and supply chain services."

    Scott Crislip, President - Helicopters, Rolls-Royce said, "Rolls-Royce maintains a worldwide, world-class support system for Model 250 engines through the FIRST network of authorized service centers. Aviall's expertise has enabled our customers to get the support they need to keep their aircraft in peak operating condition. Customer satisfaction will always be in the forefront and this agreement represents a commitment between Rolls-Royce and Aviall to provide the best support services possible."

    There are approximately 16,000 Model 250 engines in service today throughout the world in both commercial and military applications. Aviall currently services over 4500 customers in 155 countries as well as the FIRST network of 27 Rolls-Royce authorized maintenance centers throughout the world.


    Aviall, Inc. operates as a wholly owned subsidiary of Boeing Commercial Aviation Services, a unit of Boeing Commercial Airplanes, which is a unit of The Boeing Company. Aviall is a leading solutions provider of aftermarket supply-chain management services for the aerospace, defense and marine industries. Aviall, Inc. comprises two operating units, Aviall Services ("Aviall") and Inventory Locator Service ("ILS").

    Aviall is headquartered in Dallas, Texas. As one of the world's largest providers of new aviation parts and related aftermarket operations, Aviall markets and distributes products for more than 225 manufacturers and offers approximately 1,000,000 catalog items from 39 customer service centers located in North America, Europe, and Asia-Pacific. Aviall provides maintenance for aviation batteries and wheels and brakes, as well as hose assembly, kitting and paint-mixing services. The company also offers a complete set of supply chain and logistics services, including order processing, stocking and fulfillment, automated inventory management and reverse logistics to OEMs and customers.

    ILS, headquartered in Memphis, Tennessee, provides information and facilitates global eCommerce via its electronic marketplace that enables subscribers to buy and sell commercial parts, equipment and services, as well as providing eBusiness Services to the aviation, marine and defense industries.

    Forward-Looking Statements

    The statements contained in this release that are not historical facts are forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Actual results may differ materially from those expected in the forward-looking statements. These forward-looking statements involve risks and uncertainties, including pricing pressures, shifts in market demand, general economic conditions and other factors including, among others, those that affect flight activity in military, commercial, business and general aviation, the business activities of the Company's customers and suppliers and developments in information and communications technology.
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