Western Data Systems Welcomes Boeing as Newest ERPCustomer.

CALABASAS, Calif.--(BUSINESS WIRE)--Aug. 21, 1997--

WDS ERP product installed in largest business unit of Boeing's new

Information, Space and Defense Systems Group

Boeing selects WDS to supply next generation ERP system for

Australian Operations

Western Data Systems (WDS) announced that the Boeing Co. is now part of the growing WDS global customer base.

The merger of WDS customer McDonnell Douglas Aerospace with Boeing, and the subsequent selection of WDS for Boeing's Australian operations, positions WDS as an important supplier of new generation ERP solutions for the recently formed Boeing Information, Space and Defense Systems Group (ISDS).

Boeing's new McDonnell Aircraft and Missile Systems business unit and Boeing Australia Ltd. are both implementing the WDS CompassENTERPRISE family of integrated manufacturing, engineering, procurement, cost and contract management applications.

Boeing McDonnell Aircraft and Missile Systems

CompassENTERPRISE is currently being implemented in St. Louis- based McDonnell Aircraft and Missile Systems -- the largest business unit of Boeing's new Information, Space and Defense Systems Group (ISDS). The McDonnell business unit is now responsible for all of Boeing's fixed- and rotary-wing military aircraft and tactical missile systems.

McDonnell Douglas Aerospace became a WDS customer and joint development partner in 1995 when CompassENTERPRISE was selected as the basis for its new integrated manufacturing control system (IMACS) for military aircraft, missile and component manufacturing operations.

Now, as part of Boeing's ISDS Group, its implementation of that system is well along, with full production use of CompassENTERPRISE for the T-45 aircraft slated for fall of this year. When the system goes live, it will be the first use of a fully commercial-off-the-shelf (COTS) client/server Enterprise Resource Planning (ERP) system to manage production of a major military aircraft.

Implementation of CompassENTERPRISE for production of McDonnell Aircraft and Missile Systems' other major products such as the F/A 18 and Harrier fighters, the SLAM missile and components of the C-17 cargo plane are following in sequence.

WDS and McDonnell Douglas, along with other WDS customers like Hughes Aircraft and Litton Industries, have worked closely together over the past two years to jointly develop new functionality to support streamlined manufacturing and business processes in the prime and sub-contractor environment. It is this enhanced version of CompassENTERPRISE that Boeing is implementing in the huge St. Louis facilities today.

Boeing Selects CompassENTERPRISE for Manufacturing and Logistics Operations in Australia

Soon after the completion of the McDonnell Douglas merger, Boeing has proceeded with the further expansion of the WDS products into its ISDS operations in Australia.

With headquarters in Sydney and several manufacturing sites near Melbourne and Sydney, Boeing Australia Ltd. is one of Australia's most important commercial and military aerospace manufacturers, producing and overhauling military aircraft and supplying airframe components for Boeing 737, 747, 757 and 777 commercial aircraft, as well as for the Airbus A330 and MDA F/A 18.

The first Boeing Australia site to implement CompassENTERPRISE will be the ASTA Defence unit near Melbourne, which provides logistics support for the Nomad aircraft and Sikorsky helicopters, and which manufactures the Jindivik pilotless aircraft. ASTA Defence has also recently won a bid as the lead sub-contractor to E-Systems for the avionics and instrumentation refit of the P-3C Orion aircraft.

This contract will more than double the size of this unit's operations and was a driving force for the new generation ERP system. Boeing Australia wanted a system that was equally suited for both new production and maintenance, repair and overhaul (MRO) operations. It also needed a system that had the functionality to support both government and commercial business with provisions for strict contract-oriented controls and reporting for military products. It will be implementing CompassENTERPRISE integrated with the Oracle Financial applications and the Adra Matrix Product Data Management (PDM) product for a comprehensive operational, technical and business management system.

"Boeing Australia selected CompassENTERPRISE from WDS following an exhaustive evaluation of the marketplace. WDS was rated No. 1 in both MRO and MTO functionality and demonstrated a solid track record of successful implementations. This gave us the confidence that WDS was the right choice for our operations," stated Gerard Velyuthen, finance director of Boeing Australia.

Western Data Systems Positioned as Leading ERP Supplier for Aerospace & Defense

WDS already has more than 175 customers in the aerospace and defense industry. In addition to work at Boeing, WDS is currently active in assisting several of the world's leading A&D manufacturers with implementation of CompassENTERPRISE applications.

For example, Lockheed Martin currently has four sites using or implementing WDS applications, while GEC-Marconi is in the process of deploying CompassENTERPRISE at 28 sites in Europe and North America over the next two years. In addition, the United States Department of Defense is in the process of installing CompassENTERPRISE in government-operated logistics sites for maintenance, repair and overhaul (MRO) operations. More than 18 such sites are slated for implementation as part of a $30 million contract with the Department of Defense Joint Logistics Systems Center (JLSC).

According to Advanced Manufacturing Research (AMR), an industry and market analysis firm based in Boston: "WDS maintains a singular focus on the A/D industry and provides rich, industry specific functionality. Customers like Hughes Aircraft, McDonnell Douglas, and the DoD Joint Logistics Systems Center illustrate the product's ability to handle the demands of leading market players." (The AMR Report on Manufacturing, July 1997)

"We're proud to be playing an important role in providing the information systems infrastructure for these Boeing ISDS business units. Our work with McDonnell Douglas and key Boeing suppliers like GEC Marconi, Litton Industries, Smiths Industries, Hughes Aircraft and many others has given us the insight and experience to make a significant contribution. We look forward to the opportunity to be considered for further deployment into other ISDS business units in the near future," added Anton Rodde, WDS president. "We anticipate building a strong relationship with Boeing just as we have with many of the largest aerospace and defense companies."

About Western Data Systems and CompassENTERPRISE

Western Data Systems is the leading supplier of commercial-off-the-shelf Enterprise Resource Planning (ERP) solutions to aerospace and defense manufacturers and maintenance, repair and overhaul facilities. WDS customers around the world include industry leaders throughout the commercial and military aerospace supply chain, as well as government logistics facilities operated by the Department of Defense. Unlike other ERP developers, WDS has focused on the special needs of the A&D industry for many years, and delivers the advanced functionality required by this demanding industry today.

CompassENTERPRISE is an integrated family of client/server ERP applications to support manufacturing, engineering, procurement, quality, cost and contract management. CompassENTERPRISE has been developed in cooperation with industry leaders to support the principles of lean manufacturing and the agile enterprise while maintaining strict control over product costs, schedules and configurations in both military and commercial production environments.

A unique feature of CompassENTERPRISE is the full integration of special capabilities for the MRO environment with the base functionality. CompassENTERPRISE is closely integrated with the Oracle RDBMS and Oracle financial applications to deliver a comprehensive world-class business management solution. CompassENTERPRISE is scalable to meet the needs of companies and sites with concurrent users ranging from just a few dozen to thousands.

For more information about Western Data Systems and CompassENTERPRISE, contact Mary Lou Miller at 818/880-0800 or info@westdata.com, or visit the WDS Internet Web site at www.westdata.com . -0- NOTE: The WDS logo, CompassENTERPRISE, CompassCONTRACT and CompassMRO are registered trademarks of Western Data Systems of Nevada Inc. Any other product or company names mentioned are used for identification purposes only, and may be trademarks of their respective owners.

CONTACT: Western Data Systems, Calabasas

Mary Lou Miller, 818/880-0800

818/880-1424 (fax)

miller@westdata.com (e-mail)

http://www.westdata.com (Web)