Leading Unmanned Aircraft Systems Developer Insitu, Inc. to be Acquired by Boeing

BINGEN, Wash., July 22 /PRNewswire/ -- In a move to further strengthen its position as a global leader in the unmanned systems market, Insitu, Inc. announced today it has agreed to be acquired by The Boeing Company, the world's largest manufacturer of commercial jetliners and military aircraft. Insitu, based in Bingen, Wash., designs, develops, and manufactures high-performance and low-cost Unmanned Aircraft Systems (UAS) for Intelligence, Surveillance, and Reconnaissance (ISR).

In this new relationship, Insitu will operate as a wholly owned subsidiary of Boeing's Integrated Defense Systems' Military Aircraft division. "This was a strategic move to equip us to better serve our customers," said Steven Sliwa, President and CEO of Insitu. "It secures our future by allowing us to leverage the breadth and strength of The Boeing Company. At the same time, this independent subsidiary model lets us retain the unique qualities of our business culture and environment that have driven the continuous innovation, entrepreneurial agility, and customer-oriented solutions which have positioned us as a leader in our market."

Boeing and Insitu have partnered since 2002 on the ScanEagle(TM) UAS program, which has accumulated more than 100,000 hours of operational flight hours with a range of US Government and international customers. The ScanEagle system has proven to give warfighters significant tactical surveillance advantages that aren't replicated in the marketplace.

"We have realized tremendous success with our partnership to date, delivering industry leading technology and services together," commented Charlie Guthrie, Insitu's Chief Technology Officer. "This new collaboration permits us to further reach into the talent and resources of The Boeing Company to enhance and streamline the overall experience for our customers."

The transaction, anticipated to close by end of September, is subject to customary conditions and approval. Insitu, Inc. retained investment bankers Houlihan Lokey for the acquisition, and terms of the sale were not disclosed. Insitu's investors are led by Battery Ventures, Second Avenue Partners, and Pteranodon Ventures.

About Insitu

Founded in 1994 as an entrepreneurial start-up with an initial vision to provide weather services and track tuna from above the waters of the Pacific Ocean, Insitu has become one of the world's leaders of unmanned aircraft systems in the Intelligence, Surveillance and Reconnaissance field. Insitu, located in Bingen, Washington, designs, develops, and manufactures unmanned aircraft systems (UAS) for commercial and military applications. Insitu introduced the first unmanned aircraft (UA) to cross the Atlantic Ocean and has partnered with Boeing to develop ScanEagle(TM). The company has approximately 360 employees. For more information about the company, visit http://www.insitu.com.

     Contact:

     Tabitha Orlando, Insitu Marketing and Communications (509-493-6382)
     Fernando Vivanco, Boeing Communications (562-797-4582)
     Dave Sloan, Boeing Communications (253-657-8008)