1. STRATEGY IN ACTION THE EFFECT OF ASIA’S WOES ON BOEING

2. ASIA’S TROUBLES MARKET DECLINES OF UP TO 80% WIPED OUT BILLIONS IN ASSETS INDONESIAN ECONOMY DOWN BY 20% IN ONE YEAR JAPAN- $600 BILLION IN BAD DEBTS, 70% DECLINE IN PROPERTY VALUES CHINA- 75% OF BANK CREDIT IN STATE ENTERPRISES, $240 BILLION IN BAD DEBTS

3. WEALTH LOSS DUE DROP IN STOCK PRICES HONG KONG - $75 BILLION KOREA - $60 BILLION INDONESIA - $45 BILLION THAILAND - $21 BILLION TOTAL IS $201 BILLION DOLLARS

4. EFFECT ON BOEING 30% OF BOEINGS BACKLOG INTENDED FOR ASIAN CUSTOMERS ORDERS ARE DEFERRED OR CANCELLED ALTOGETHER ASIAN WEAKNESS IS STRONGEST IN 747 AND 777 MODELS 48000 JOB LOSS 25% CUT IN PRODUCTION SHARE PRICE HAS FALLEN ABOUT 25% 25% CUT IN COMMERCIAL JET PRODUCTION

5. BOEING’S PROJECTIONS 1999 2000 OPERATING REVENUE $58 B $50 B TOTAL R&D SPENDING $1.7 B $1.5 B DELIVERIES 620 490 EMPLOYMENT 200000 185000 PROFIT MARGINS COMMERCIAL.02.01 SPACE & DEFENSE.08.09