Boeing announced Tuesday that it will acquire Insitu, the small firm in Bingen, Wash., that developed the unmanned ScanEagle used in Iraq.

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."

P-I reporter John Cook has more on Insitu and today's news.

Here is part of the news release:

Boeing and Insitu have partnered since 2002 on the ScanEagle™ 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™. The company has
approximately 360 employees. For more information about the company, visit
www.insitu.com <>.