CC030187.01

1. Boeing – Fort Walton Beach CC030187.01

2. Boeing – Fort Walton Beach • Background • Arrived in Fort Walton Beach in 1994 • Completed Over 50 Major Aircraft Modifications and Upgrades Since Our Arrival • Repair & Test Aircraft Weapon System Components • Provide On-Site Maintenance and Support at Hurlburt Field • Deploy Personnel with AC-130U to Operational Sites • Satellite Office in Crestview • Employment Level Approaching 500 • ~25% Female • Sales Exceed $170M

3. Business Model • “The Sterling Criteria is our Business Model.” - Bill Grant January 2002

4. What Is Expected of the CEO • Fully Participate and Support the Process • Set the Example – Be a Role Model • Communicate! Integrate! Cultivate! • Institutionalize the Commitment to Business Excellence as a way of life

5. Why Align with Sterling? • Sterling Drives Approach, Deployment, Results, Alignment and Integration • Good Approaches that are Fully Deployed Produce Solid Business Results Over Time • May Stumble Across Solid Business Results from Time to Time Anyway – Hit or Miss – Is it Worth Taking that Chance? • Alignment and Integration Drive Efficiencies that Improve Your Organization’s Competitiveness and Provide Increased Value for Stakeholders

6. Our Journey • In 1997 We Began Laying the Foundation and Made A Commitment to: • Focus on our People and Our Customers • Define Good Approaches and to Fully Deploy Them • Make Sure that Our Approaches Positioned us to Achieve Solid Business Results Each Year • Align Our Quality Management System with ISO9001 and, Later On, with AS9100 • In 2002, We Took it a Step Further and Made a Commitment to: • Align with The Sterling Model • Apply for the Governor’s Sterling Award • Pursue Excellence in All that We Do

7. What Did We Experience? • For 2003… • Orders Came in at 200% Above Plan • Sales Exceeded Plan by 30% • Double-Digit Earnings were Realized • Increased Our Employment Level by 37% • Employee Satisfaction Levels Exceeded Premier Company Levels • Customer Satisfaction Levels Remained Strong • We were Selected as a Recipient of the Governor’s Sterling Award • Our Part of the Boeing Defense Business – Aerospace Support – was Selected as a Recipient of the 2003 Malcolm Baldrige National Quality Award

8. What Comes Next for Us? • Improved Processes, Customer Relationships, Employee Satisfaction Levels, Etc have Positioned Us for… • Signing a Sole Source Aircraft Modification Contract with the US Government - Valued at up to $1 Billion • Long Term Sustainment of our Customer’s Next Generation Tilt-Rotor Aircraft • Increased Business with other Boeing Business Units • Capturing the Next Phase of our Current Mod Contract - to be Awarded in 2008 – Valued at well over $1 Billion • Running a Healthy, Profitable Business that will Benefit our Stakeholders Long-Term

9. Recommendations • Adopt the Sterling Criteria as Your Business Model • Fully Support Deployment – Without Your FULL Support this will not Work • Get “In the Game” – If You are Committed, Begin the Process Immediately • If You Think There is a “Glimmer of Hope” that you Could Win the GSA – Apply for It – • This “Pumps Up” Your Team • Conveys Your Level of Commitment • Adds a Whole New Level of Accountability and… • The Sterling Process Works – You will Benefit from it more than I can Express to You

10. Recommendations • If You are not Ready for the GSA or Cannot Afford It, Start with one of the Other Alternatives – Navigator or Challenge – But Just Get Started • As a Leader, Share Your Vision and Determination • Florida Offers a Unique Opportunity through the Sterling Process • It is YOUR Loss if You Fail to Take Advantage of this Golden Opportunity STERLING IS A PROVEN MODEL EMBRACE IT & APPLY IT!!!