25 June 2000

Satcoms

Another Hot Bird for Eutelsat
Eutelsat has placed a contract with Astrium for the fast delivery of a new Hot Bird satellite for 13° E.

The new 40 transponder Ku band satellite will be delivered to Eutelsat in the second quarter of 2002. In addition to a Super Wide beam over Europe, North Africa and the Middle East, it will be equipped with two steerable spotbeams that will be pointed outside Europe to support Eutelsat's expansion in new geographical markets.

The new satellite will be called Hot Bird 7 and will probably replace Hot Bird 2 or 3.

Comsat's Antarctic Link
Comsat General, a subsidiary of Comsat Corporation, has signed an agreement to provide satellite data communications to the Amundsen-Scott South Pole Station located at the centre of Antarctica.

The US Navy Space and Naval Warfare Systems Center in Charleston, South Carolina signed the agreement, on behalf of the National Science Foundation (NSF). The contract is for one year and includes four one-year options, with the potential for service through May 2005. The communications services to be performed by Comsat will supplement coverage provided by several other government satellites, and is expected to significantly improve the quality of communications for the scientists and staff working in the physical isolation of the South Pole.

The additional satellite data communications provided under this agreement will enable scientists to transfer, rapidly and efficiently, the large amounts of scientific data gathered each day in the year-round research performed at the South Pole. The additional satellite service is one of several electronics and communications improvements being made at the South Pole Station.

The location of the Amundsen-Scott Station at the earth's axis allows for long-term astronomical observations impossible anywhere else on the earth. Also, the unique geographic and climatic conditions - which include high altitude, extreme cold and very dry air - make the station an unparalleled platform for astronomy and astrophysics. The research includes studies probing the early history of the universe, as well as the study of space weather, sunspots, solar winds and upper atmospheric (ozone layer) research.

The agreement is the second part of a two-phase project. The first phase began in February with the relocation by Comsat General of the Marisat F2 satellite to a new geosynchronous orbit location over the Atlantic Ocean where it can support the data communications requirements of the NSF South Pole Station. This repositioning is expected to be complete by the end of August. Marisat F2, launched on October 14, 1976, is the last of the three dual-payload satellites designed for use by the US Navy and the commercial shipping industry. It is the oldest commercial communications satellite in the world still in service. The three-satellite Marisat system served as the initial Inmarsat space configuration.

To enable service with the South Pole over the Marisat F2, Comsat will use the satellite gateway facilities located at its teleport in Clarksburg, Maryland. The gateway and antenna will support two-way data rates in excess of 2 Mb/s for US-to-South Pole communications needs.

Consumers Prefer Satellite to Cable for Interactive TV
A new TechTrends study has revealed that more consumers are willing to pay extra for interactive TV services through satellite TV providers than through cable operators.

As interactive TV services become widely available in the US, cable operators may begin to lose subscribers to providers of satellite TV services. According to new research by TechTrends Inc, DBS operators like DirecTV, EchoStar Communications and Pegasus Communications are poised to take market share from AT&T, Time Warner and other leading cable companies.

TechTrends' new study, "Identifying Opportunities in Web-Enabled Interactive Television: An Analysis of Hardware, Software, Services and Content," suggests that when the time comes for consumers to sign up for ITV services, satellite subscribers are likely to be more loyal than cable subscribers. Among US consumers who are willing to subscribe to ITV services for an additional US$ 20 per month, only 63% of cable users are likely to subscribe through their current cable provider, compared to 93% of satellite users who are likely to subscribe through their current satellite provider.

By offering ITV services, such as Internet access, e-mail, personalised television and video-on-demand, both cable and satellite operators can increase both their subscriber base and their revenue per subscriber.

Cyberstar Beams Proctor and Gamble Event to 10,000 Employees Worldwide
Loral CyberStar's uplink facilities and broadband satellite network were successfully used last week to distribute 30 hours of live coverage of Procter & Gamble's Innovation 2000 technology fair at the Cincinnati Convention Center directly to more than 10,000 employee desktops around the world.

The three-day e-learning event, which was held June 13-15, was seen live by P&G employees in North America, South America and Europe, and on a delayed digital feed in Asia.

During P&G s Innovation 2000, employees around the globe were able to virtually visit the booths of more than 115 P&G presenters and vendors, hear keynote speeches, and see presentations and demonstrations on how to use the latest technologies to do their jobs more efficiently, effectively and productively. This multi-functional Technology Trade Show focused on innovations in products, packaging and services, and it enabled connections across P&G s business areas and vast scientific and technical base, as well as with outside suppliers, research institutions and other technology providers.

P&G produced the video content, encoding the content into an internet protocol (IP) encapsulated format and sending the IP stream over dedicated T1 circuits from Cincinnati to the CyberStar uplink facility in Carteret, New Jersey. The IP stream was then broadcast to a network of 19 sites worldwide. CyberStar antennas, receivers and software located at these sites permitted end users to view the program using industry-standard Microsoft Media Player software directly on the desktop or in dedicated meeting rooms throughout the world.

The content of the desktop broadcast included speeches and demonstrations, and on-site camera crews visited each booth at the show to interview vendors and employees about the different products services and technologies on display and how they are used in the workplace.

In Flight Network to Offer Aeronautical Internet
In-Flight Network LLC, a joint venture of News Corporation and Rockwell Collins, has announced a long-term strategic development with Globalstar and a development agreement with Qualcomm Incorporated which will enable In Flight Network (IFN) to provide low-cost broadband Internet and e-mail services to existing commercial airline fleets by early next year.

Two weeks ago, a prototype of the IFN system was flown and successfully operated over parts of North America, proving the functionality of the system.

Under the agreements, IFN, Globalstar and Qualcomm will participate jointly in the development of a system that will provide broadband Internet access as well as e-mail, paging and voice-over-IP applications directly to passengers aboard aircraft in flight. Broadband Internet data and entertainment will be transmitted directly to aircraft via geostationary satellites, with the return link carried over the worldwide Globalstar satellite network. In addition, the Globalstar satellite network will serve as an independent two-way channel for Internet access, e-mail, downloading of data and other applications.

With Qualcomm-developed enhancements to its Code Division Multiple Access (CDMA) technology, the Globalstar data link will initially operate at speeds in excess of 200 kb/s. When user demand increases and ground terminal capacity can absorb the greater data load, this data rate can be increased to over 800 kb/s - faster than most DSL or cable modems.

IFN's service will enable affiliate airlines to deploy high-speed, full Internet access and e-mail services quickly. The new service will eliminate the need to wait for the build-out of new satellite networks or to invest in expensive new antennae.

IFN, Globalstar and Loral Space & Communications also intend to evaluate the use of additional Globalstar and Loral satellite-based products and services for incorporation into IFN prior to full-scale deployment in late 2001.

IFN plans to offer lab demonstrations of the new Internet and e-mail service to aviation and airline industry representatives beginning in mid-July. IFN will conduct comprehensive in-flight demonstrations of the new service for press, government and airline officials, and technology and entertainment industry leaders at a Southern California airport location in the Fall.

In-Flight Network LLC is a joint venture entity formed by News Corporation, one of the world's leading media companies, and Rockwell Collins, a world leader in aviation electronics. It was formed as the world's first global in-flight entertainment network to offer live coverage of news, sports and entertainment events, in addition to recorded audio/video programming and broadband Internet access and e-mail services.

IFN s global, satellite-based, broadband digital communications network will also support multiple video channels, with programming automatically tailored to the length of flight and specific destinations. IFN affiliate airlines will be able to provide their passengers with differentiated, airline-specific, co-branded programming options of business and entertainment channels in multiple languages. IFN's advertiser-supported business model enables global and national advertisers, as well as local and regional advertisers, to deliver full-motion broadcast video spots to aircraft in flight throughout the world. Web-based video spots and banner ads will also be delivered to PC users on targeted aircraft and airport premises.

Intelispan Chooses DirecPC for Broadband Delivery
Intelispan Inc a pioneer in the development and management of intelligent communications networks, has chosen the DirecPC service from Hughes Network Systems as its broadband service solution.

Utilising the Broadband Everywhere capability of DirecPC, and Intelispan's highly secure virtual private network (VPN) solutions, Intelispan will offer broadband VPN services throughout the US. Intelispan is currently the first provider of secure VPN services utilising DirecPC. Intelispan will offer customers secure access through its Inteligate family of VPN services powered by DirecPC, at speeds bursting up to 400 kb/s. The Intelispan Managed Network Solution will enable customers to effectively send and receive secure broadband services directly to their PCs or network in a business environment, without the need for expensive infrastructure. In addition, DirecPC brings business television and eLearning services to users of the service.

Intelispan is a Managed Network Solutions company specialising in secure Business-to-business communications and e-commerce with a focus on emerging and traditional companies and divisions experiencing high growth and rapid transition in the new economy. The Company's total managed network solutions provide complete, turn-key, outsourced development and management of next-generation communications networks. Utilising a comprehensive suite of solutions built around secure Internet Protocol (IP) networking, the company provides a full line of Virtual Private Networks (VPN), as well as advanced network design and project management. Intelispan's e-commerce services allow companies to rapidly deploy collaborative trading communities, providing access to secure commerce environments and advanced network productivity with significantly reduced capital expenditure and exposure to risk.

Internet By Satellite For South Korea
STM Wireless Inc has delivered a SpaceWeb-Online system to Harmonic for delivery to MiraeOnline of Korea for the initial roll-out of a commercial, DVB based, broadband service targeting the rapidly expanding Internet users in South Korea.

Internet penetration in South Korea is the highest among all the countries in Asia only after Japan and is expected to grow over 100% this year. MiraeOnline's initial target market is the bandwidth-hungry Internet users who cannot otherwise get broadband Internet access. MiraeOnline also plans to provide multimedia contents (educational, video and audio) to consumers by means of IP multicast and push technology.

The approximately US$ 1.2 million system purchased by MiraeOnline will be used as part of its satellite broadband teleport for offering two-way DVB based services in Korea using Ku band frequencies, and later, expanding into Ka band with 0.6 m antennas. The SpaceWeb-Online system uses a F-TDMA return channel with speeds of up to 192 kb/s. Its highly integrated design provides an IP interface directly from an Outdoor Unit (ODU) installed on a small customer premise dish.

MiraeOnline is one of Korea's leading high tech companies. In 1999, MiraeOnline formed a joint venture with Lycos for the offering of Internet portal access in Korea. Its broadband service strategy is part of a plan to further expand its Internet related business.

STM's SpaceWeb VSATs provide connectivity for all types of IP applications using a DVB based broadband system with F-TDMA return channels. While STM is committed to following the emerging standards for a common return channel platform, the SpaceWeb-Online system is an immediate solution which combines an integrated IP-ODU with a newly developed F-TDMA IP-DAMA Hub specifically designed for cost effectiveness and scalability of use by the rapidly growing number of DVB based satellite service providers. The product is offered in both C band and Ku band and is being marketed for use with upcoming Ka band satellites. The SpaceWeb-Online VSATs can be used as a customer premise equipment for DVB based direct broadband Internet access by multiple computer users sharing a LAN such as public Internet outlets, corporations or universities receiving rich Internet content via a 48 M/s broadband downstream channel.

Japanese Companies Co-operate On Next Generation Digital Set Top Boxes
Japanese electronics makers Toshiba Corp, Matsushita Electric Industrial Co and Sony Corp will work together on a standard format for the next generation of digital TV set-top boxes.

The three companies, which together manufacture half of the TV sets produced in Japan hope such a standard will help entice viewers to new interactive digital satellite television services in Japan. Currently different systems require different receivers forcing viewers to buy extra equipment to receive additional services.

The three companies hope to finalise development by next March, enabling them to market new products next summer.

Manned Space

Dennis Tito Confirmed as MirCorp's First Paying Passenger
MirCorp has inaugurating its Citizen Explorer program with the selection of the first fare paying passenger for a trip to the Mir space station.

MirCorp's initial Citizen Explorer candidate is Dennis Tito, a former US space program engineer who founded Wilshire Associates - the Santa Monica, California-based company that revolutionised the field of investment management consulting.

MirCorp has entered initial discussions with several other Citizen Explorer candidates, and flights to Mir will begin in 2001. MirCorp is setting up an office in Moscow to co-ordinate and support its Citizen Explorers - becoming the first operation in the world to manage a corps of private space travellers.

MirCorp's mission schedule for 2001 and beyond will be announced following the company's next board meeting, to be held in July.

To ensure Mir remains in operational condition for the long-term, MirCorp will fund a new resupply mission in the coming months using a Progress unmanned spacecraft. This will be the third such resupply mission to Mir since MirCorp began financing the station's continuing operation.

Tito currently is undergoing Russian medical examinations in preparation for his flight.

As an engineer in the 1960s and early 1970s, Tito developed flight trajectories for the US series of Mariner interplanetary spacecraft that went to Mars and Venus. Today, Tito's Wilshire Associates advises investors on about US$ 1 trillion in assets, as well as directly managing about US$ 10 billion in assets and providing analytical tools to some 350 institutions around the world. Wilshire Associates is perhaps best known for its Wilshire 5000 stock index.

Launch Vehicles

Alliant Completes Development of Delta IV Solid Rocket Motor
The Alliant Aerospace Propulsion Company, Magna, Utah, has successfully completed the last of three static test firings of a new solid propulsion Graphite Epoxy Motor designated as the GEM-60 for The Boeing Company's Delta IV Medium-plus family of launch vehicles.

The test marks the completion of the new motor's development and qualification program, following 29 months of design, fabrication, and testing work by employees from Boeing, ATK, and several critical suppliers, including Moog, which supplies the Thrust Vector Actuation system, Hitco, which manufactures the nozzle, and Marvin Engineering, which fabricates the main metal components.

The first production motors will be delivered to the launch site this autumn and then to Boeing in early 2001. The maiden launch for the Delta IV vehicle is planned for 2001.

Alliant Aerospace Propulsion Company is delivering GEM-60 motors to Boeing under a contract that extends through 2008. ATK is also producing Delta IV structures at its new composite structures manufacturing facility in Iuka, Mississippi.

The Delta IV Medium-plus family has three configurations, which are distinguished by the number of GEM-60 motors attached to the common booster core and the size of the upper stages and payload fairings, which protect satellites during the early ascent phases of flight. The configurations are:

* Delta IV Medium-plus (4,2) with two solid rocket motors and a four meter
fairing for a GTO payload of 5,850 kg.

* Delta IV Medium-plus (5,2) with two solid rocket motors and a five-meter
fairing for a GTO payload of 4,640 kg.

* Delta IV Medium-plus (5,4) with four solid rocket motors and a five-meter
fairing for a GTO payload of 6,570 kg.

Cape Canaveral Spaceport Agreement Signed
In a step towards planning for the Cape Canaveral Spaceport when Roy Bridges, director of Kennedy Space Center and Brig. Gen. Donald P. Pettit, commander of the 45th Space Wing signed an interagency agreement that established the Joint Planning and Customer Service (JPCS) office.

The agreement brings together an integrated staff from the 45th Space Wing and KSC into a single office to represent both agencies at the Spaceport. The principal missions of the JPCS are to eliminate bureaucracy, serve as a "one-stop shop" for new customers of the two federal agencies and to continue to expand the Air Force/NASA partnership.

The JPCS is also designed to facilitate inter-agency planning activities between the 45th Space Wing and KSC.

Patrick AFB will be the temporary location of the JPCSO. It will be relocated to Cape Canaveral AFS once a permanent office site is determined. Mr. Rick Blucker, director of the 45th Space Wing Plans and Programs Office, will also serve as director of the JPSC staff.

Loral To Stick With Japanese H-2A Launcher
Loral Space and Communications, which has bookings to launch ten satellites on the troubled Japanese H2-A launcher has said it will not move these satellites to other launchers.

Last week Hughes Space and Communications cancelled plans to launch 10 satellites on the rocket after two failures of an older version of the vehicle.

The Loral contract is crucial to the commercial success of the rocket, which so far has just one more customer. The European Space Agency (ESA) earlier said it will put its Advanced Relay and Technology Mission Satellite (ARTEMIS) into orbit aboard a Japanese H2-A rocket next February.

Russia and Kazakhstan Sign New Baikonur Launch Agreement
Russian president Vladimir Putin and Kazak president Nursultan Nazarbayev signed a new agreement on the use of the Baikonur cosmodrome.

Following the signing of the agreement, the Baikonur cosmodrome in Kazakhstan will remain Russia's main launch site. Back up plans to improve the infrastructure at Plesetsk to take over from Baikonur will now be dropped.

Financial terms were not revealed.

Sea Launch Ready to Resume Flights
Sea Launch has successfully completed its Return to Flight/Systems Readiness Review. All participants signed a certificate of agreement indicating they are completely satisfied that all corrective actions are being implemented satisfactorily. Preparations for the launch of PAS 9 in late July are now underway.

The initial Return-to-Flight/Systems Readiness Review was held in Long Beach, June 5-6. A follow-on review brought the group to full consensus on June 12. These meetings were the next major step, following completion of the Sea Launch Failure Review Oversight Board investigation of the March 12 launch. That launch failed to place the ICO F-1 communications satellite into orbit. Members of the Board issued a signed report to Sea Launch on May 22.

A small team of representatives from the Board presented a comprehensive briefing to both the US and the international insurance communities as well as near-term customers. Sea Launch was successful in obtaining the necessary licenses and approvals from the Federal Government in a timely fashion to support this briefing schedule.

Prior to vessel departure for the launch site on the equator, Sea Launch will conduct its standard Mission Readiness Review to ensure all elements are ready to support mission operations and all action items are closed. In addition, for this particular mission, the launch team will conduct an additional Executive Review to clearly demonstrate to its customer, PanAmSat, that the highest levels of each partner organisation has been intimately involved in the satisfactory implementation of all corrective actions. This extra step will enable all participants to formally state mission readiness.

Launches

Express 3A

Launched: 24 June 2000
Site: Baikonur, Kazakhstan
Launcher: Proton/Blok DM
Orbit: GEO 11° W
International Number: 2000-031A
Name: Express 3A
Owner: Russian Satellite Communications Company (RSCC)
Contractor: bus, NPO-PM; payload, Alcatel Space Industries

Express 3A is the second of a pair of new communications satellites for Intersputnik. The first Express, 6A, was launched on 12 March 2000.

Each Express satellite carries 12 C band and 5 Ku band high power transponders.

Express 3A will take over services currently carried by Statsionar-11 (Gorizont-26) including C band high-speed Internet access channels for the Middle East and Africa from Europe as well as from North America and Ku band digital TV broadcasting.

Business

BCE and Teleglobe Finalise Merger Plans
BCE Inc and Teleglobe Inc have reached an agreement to revise certain terms of BCE's offer to acquire all of the outstanding shares of Teleglobe it does not already own.

Under the revised agreement, BCE will provide Teleglobe with US$ 100 million in financing immediately and additional financial assistance if required prior to the closing of the transaction.

Teleglobe shareholders will receive a fixed share exchange ratio for their Teleglobe common shares. BCE has also agreed to eliminate all conditions of the transaction except those provided by law and material regulatory approvals and to accelerate the closing of the transaction. This arrangement will remove uncertainty and permit Teleglobe to proceed with its business plan.

Teleglobe has been in on-going negotiations with its lenders to renew its credit facility of US$ 750 million. Due to its continued overall financial weakness, Teleglobe could have been in default of bank covenants prior to the closing of the transaction, unless BCE agreed to provide additional financial support. This additional support was not part of the original agreement announced February 15, 2000.

Under the revised offer, Teleglobe shareholders will now receive a fixed exchange ratio of 0.91 of a BCE share (less nominal cash consideration per share) for each Teleglobe common share they own. Teleglobe shareholders can also choose to receive up to 20% in cash for the value of the BCE share component, based on the price of BCE common shares prior to closing.

Teleglobe's two major shareholders, Kenny Troutt and Charles Sirois, who respectively hold 18% and 8% of Teleglobe's common shares outstanding, have agreed to tender their shares under the terms of the revised agreement.

The revised agreement would represent a purchase price of Cdn$ 6.4 billion based on the BCE share price of Cdn$ 35.05 at the close of markets on Friday, June 16, compared with Cdn$ 6.8 billion under the original agreement also based on Friday's close.

Teleglobe expects to mail by mid-September the proxy circular for the special shareholders meeting to approve the transaction. The special meeting of Teleglobe's shareholders and the closing of the transaction are expected to take place in mid-October. Under the original all-share agreement, it was hoped that the transaction could be structured in a non-taxable manner for US and Canadian shareholders. Due to the financial support that BCE will be providing to Teleglobe prior to the closing of the transaction, the parties have determined that the transaction will be taxable to US shareholders. As contemplated in the original agreement, the revised agreement provides a 20% cash component to assist in the payment of taxes.

Globalstar Will Need More Funds
Globalstar has issued a statement clarifying its future funding requirements following adverse predictions from some analysts.

The company confirmed that it has sufficient funds on hand to continue the deployment of the Globalstar system and that it will most probably require additional funding in the September/October timeframe. At that time it expects to be able to offer stronger evidence of deployment progress than is currently available.

Reports that requests for additional funding have been made and rejected were denied.

The company has previously stated that, without giving effect to any revenue and assuming that a US$ 250 million bank credit is allowed to expire at the end of June 2000, Globalstar will need a maximum of US$ 160 million by year-end 2000, an amount which will be offset by revenues received to that point.

The company, which reports minutes of use and revenue on a quarterly basis, noted that while the roll-out of service has been slower than expected, recent activity continues to provide positive evidence of a steady build-up. Usage continues to increase weekly and service providers remain confident that Globalstar will succeed in penetrating its selected markets.

Usage levels of the Globalstar service, and their growth with time, remain because of the soft introduction of service in most markets coupled with the phased addition of countries to the network's coverage. However, roll out continues with new markets being added every week and new users are continually being added.

International Space Business Council Sees Boom Times Ahead
Global space industry revenues will rise 10% to US$ 96 billion in 2000 from US$ 87 billion in 1999 according to "2000 State of the Space Industry", a report from the International Space Business Council (ISBC). Projected revenues will increase another US$ 81.2 billion by 2005.

Beyond satellite and launch vehicle manufacturing, the industry now delivers communications services used by businesses and consumers, including broadband and Internet access, streaming media to the desktop, cable and video programme distribution, direct broadcast satellite television, distance learning and private business networks, mobile telephony, remote communications, and soon to-be-launched direct-to-consumer digital radio.

The report also noted that the industry supported more than one million jobs world-wide.

Among the findings of the report: approximately 3% or 2.5 Gb/s of international transport capacity world-wide is used to supply Internet backbone connectivity by satellite. Internet services world-wide currently use 15 Gb/s of satellite capacity. This figure is forecast to grow more than four times in the next four years to 60 Gb/s. As the Internet uses local caching as a standard delivery method, the distribution of Internet content to local servers will create an even greater demand for transponder capacity managed by Fixed Satellite Service operators.

The report expects revenues generated by commercial remote sensing to grow by 415% until 2005, Little LEO data services by 513%, and broadband via satellite by 2,015%.

Murdoch's Platco Becomes Sky Global Networks
As expected, News Corporation's global satellite television operations have filed with the US Securities and Exchange Commission to spin off from their parent and to go public in an initial stock offering in the United States.

The new company, which until recently had the working name of Platco, will be named Sky Global Networks Inc. It will be the world's biggest distributor of pay TV services, serving almost 85 million homes, cable operators and other third party distributors.

The initial offering will probably be for US$ 1000 million, though this will probably be followed by a much larger offering, rumoured to be for as much as US$ 5 billion eventually. Industry analysts have valued the company at US$ 40 billion.

Sky Global's holdings will be as follows:

• BskyB, the UK's leading pay TV service (38%)
• TV Guide International
• Stream, an Italian cable service (50% in partnership with Telecom Italia)
• Star, the leading pan-Asian TV service provider (100%)
• Sky PerfecTV, the leading Japanese digital TV broadcaster (10%)
• other satellite operations in Europe, Latin America and Asia

Vivendi and Seagrams in Mega Media Merger
Vivendi, Canal+ and The Seagram Company Ltd are to combine in a three way merger that will create Vivendi Universal, a leading global media and communications company, combining content across the world's most popular genres with an enormous customer and subscriber base in every access format.

Vivendi Universal will provide proprietary, value-added content, e-services and e-commerce to customers anytime, anywhere. The combined company will bring content from the world's largest music company, second largest film library, major film production studio, second largest destination theme park company, and global leader in reference, consumer and PC-based software game publishing with Vizzavi, Vivendi's new multiple access portal, and the combined global distribution capabilities of Vivendi, Seagram and Canal+.

Vizzavi will be the default portal for 80 million mobile and interactive TV subscribers of Vivendi's 50-50 joint venture with Vodafone, and Canal+. Growth of the Vizzavi customer base will increase further with the infusion of content from the combined company covering global, local and personalised content drawn from all of the most popular entertainment and information formats.

At the same time, the growth prospects of the Company's core businesses will benefit from enhanced opportunities for cross-promotion, bundled service offerings, and advertising. Vivendi Universal will also be in a position to leverage its distribution capabilities in Europe and its expertise in creating wireless content and services, to forge new partnerships and exploit new opportunities as the growth of wireless services accelerates in North America and around the world.

The deal will be an all-stock swap valued at approximately US$ 34 billion. The new company will be headquartered in Paris with an additional corporate centre in New York. Vivendi Universal will be listed on the Paris, New York, and Toronto stock exchanges.

The merger will combine Vivendi's broad-based telecommunications assets - which include high-speed wireless transmission, fixed and wireless communications networks, Internet access service providers and both cable and satellite transmission networks - Universal's extensive music catalogue and film and television libraries, as well as production and distribution capabilities through its Universal Music Group, Universal Studios, its stake in USA Networks, and Canal+'s leading film and broadcast and subscription television assets.

Under the terms of a definitive merger agreement approved unanimously by all three companies' boards of directors, Seagram shareholders will receive for each common share of Seagram stock held, a number of Vivendi shares designed to have a value of US$ 77.35. The number of Vivendi shares to be exchanged for Seagram shares will be subject to a collar under which the exchange rate will be fixed at 0.800 if the Vivendi stock trades below US$ 96.69 and fixed at 0.622 if the Vivendi stock trades above US$ 124.30. The transaction is designed to be tax-free to Seagram shareholders in both the US and Canada.

In connection with the acquisition of substantially all the assets of Canal+ by Vivendi, shareholders will be receiving 2.0 Vivendi shares for each share of Canal+ held, as well as retaining an interest in the regulated businesses of Canal+, which will remain 51% publicly owned.

The Bronfman family, which owns 24% Seagram shares outstanding, has signed a binding commitment to vote its shares in favor of the transaction.

The agreement is subject to shareholder approval, listing of the Vivendi shares on the New York Stock Exchange, regulatory review and approvals in the European Union, United States and Canada, and customary closing conditions. The companies expect to circulate voting materials to shareholders in August and expect to close the transaction before the end of the year.

Products and Services

Helius' Optimised Gateway Improves IP Throughput
Helius Inc has announced an IP-compliant Optimised Gateway that was designed to improve interactive Internet services over satellite, such as browsing, file transfer protocol (FTP), virtual private network (VPN) links, e-mail and other bi-directional services.

The Helius Optimised Gateway can be used with any IP compliant satellite gateway to improve performance and reduce satellite bandwidth cost. Targeted at satellite-based service providers (SSPs) and network operation centres (NOCs), the Helius Optimised Gateway improves the efficiency of data transfer over satellite connections, allowing service providers to fit more customers in their existing space segment and/or save expenses by leasing less capacity.

Helius' previous work on performance enhancements products have yielded a 200 % to 400 % improvement in file download and browsing response times

There are various alternative solutions that improve performance but they usually impose proprietary protocols and cannot perform all the necessary services. The Helius Optimised Gateway supports all protocols and complies with all IP requirements for routers and Internet devices. It can also be used in conjunction with existing satellite gateway products to improve performance.

High Definition Satellite TV Receivers From Echostar
EchoStar Communications Corporation has announced that the Dish HD Model 6000, an integrated satellite television receiver with the ability to receive High Definition Television (HDTV) signals, is now available at participating Dish Network retail outlets.

The Dish HD Model 6000 is EchoStar's newest high definition satellite TV receiver on the market, and is available for a recommended price of US$ 499.

The Dish HD Model 6000 delivers Dish Network high definition programming and crystal-clear Dolby Digital sound. Using component and RGB HDTV video outputs compatible with high definition television sets, Dish HD supports 1080i and 720p resolution formats established by the Advanced Television Standards Committee. Dish HD also allows high definition programming to be viewed on standard definition television sets by down-converting HD programming to the standard definition format. Also included are many of the advanced features found in other premium EchoStar products, such as an Infra-red Blaster for VCR control, UHF/Infra-red remote control, event timers and parental controls.

Dish Network currently offers two channels of HDTV, HBO-HD and Showtime-HD, offering customers blockbuster hits and sports events.

IPirion Offers Voice Over IP By Satellite
IPirion AG, a subsidiary of the Red Cube Group, has launched a commercial service offering VoIP via satellite technology. The product is now available after successful testing of a satellite Voice over Internet Protocol (VoIP) connection.

With this additional means of IP transmission, IPirion is now able to efficiently serve destinations that are otherwise difficult and expensive to reach by traditional networks.

In addition, IPirion has entered the South and Central American and East and South Asia markets following additions to the company's already extensive network. Two new Caribbean gateways in Guadeloupe and Martinique give IPirion entry into the Central and South American market, while another gateway in Colombo, Sri Lanka, provides entry into the South and East Asian markets, the fastest growing areas in telecommunications services.

IPirion's satellite connection will be fed by a new Point of Presence (PoP) in La Ciotat, France. From this PoP, the traffic is sent via Gensats satellites.

New Start Up Speed Access to FCC Satellite Filings
Start-up company Regulatory Access LLC, of Washington DC, has launched an online searchable database for quick access to the data-rich documents filed with the US Federal Communications Commission (FCC).

The service, FCCFilings.com will provide subscribers with access to scanned-in paperwork related to the building, launch and operation of satellites for a fee of US$ 5,000 a year.

Currently, obtaining this data has been a slow process for the lawyers, investment bankers and telecommunications and aerospace firms tracking the space industry. Currently, the FCC receives between 100 and 200 applications per year, 95% of which are on paper.

Portable High Speed Data From Comsat
Comsat Mobile Communications (CMC) has commercially launched its new high-speed data (HSD) mobile satellite service, Comsat Mobile ISDN.

The new offering is Integrated Services Digital Network (ISDN)-compatible and enables voice and HSD communications at speeds up to 64 kb/s. The service uses the lightest weight, most portable satellite terminals available in the world that support mobile HSD communications. Comsat Mobile ISDN makes possible direct dial-up LAN-based applications such as World Wide Web and intranet browsing, videoconferencing, store-and-forward video, e-mailing, e-commerce and image transfer.

The service is now available for land mobile customers operating in the Atlantic Ocean East and West satellite regions. Coverage includes Europe, Africa, the Middle East and Central and South America. Comsat Mobile ISDN will be expanded to the Pacific Ocean region by mid summer and to the Indian Ocean region this fall.

Comsat also plans to introduce a new Internet protocol-based mobile communications service, Comsat Mobile IP, later this year. Comsat Mobile IP uses packet data technology enabling customers to more cost-effectively access the Internet and other fixed networks. Both Comsat Mobile ISDN and Comsat Mobile IP are part of the Inmarsat Global Area Network.

People

Changes to Intelsat's Board
Intelsat's Board of Governors has elected Mr Maury Mechanick of the United States as the new Chairman of the Board and Mr Robin Turner of the United Kingdom, as the new Vice-Chairman.

The positions are elected yearly among Intelsat's 28 Governors who represent Intelsat's international owners. These recommendations will be considered by an extraordinary meeting of the Intelsat Assembly of Parties, scheduled for November 2000.

eSAT Appoints Michael J O'Hara as Senior VP Business Development
eSAT Inc, a broadband Internet Service Provider (ISP) with wireless and satellite data delivery capability, has appointed Michael J. O'Hara to Senior Vice President of Business Development for Central and South America.

In this position, O'Hara will be responsible for the overall management of eSAT's Central and South American operations including strategic development, corporate financing, mergers and acquisitions, and identifying corporate joint venture opportunities.

Roger Beachy Joins Spacehab's Science Advisory Board
Spacehab Inc, a leading provider of commercial space services, has announced that Dr. Roger N. Beachy, President of the Donald Danforth Plant Science Center in St. Louis, Missouri, has joined the company's Science Advisory Board.

Earlier this year, Spacehab and the Danforth Center signed a memorandum of understanding (MOU) with the Institute of Molecular Agrobiology (IMA) in Singapore and Monsanto Company to conduct joint life sciences research in space.

Dr. Beachy, a member of the National Academy of Sciences, is internationally known for his work on virus-resistant plants.

Spacehab established its Science Advisory Board in 1997 to provide scientific expertise on emerging technology and applications for space research. The board is engaged in canvassing the science and technology community regarding research endeavours that may be viable in space. The board also supports science and education outreach around the world.

Steven Carchedi Resigns From Integral Systems
Integral Systems Inc has announced that Steven A. Carchedi, Executive Vice President and Director, has resigned from all posts with the Company effective June 30, 2000.

Mr. Carchedi is taking a senior management position in a startup firm not involved with satellite ground systems.

Integral Systems is a leading provider of satellite ground systems and has supported over 100 different satellite missions for communications, science, meteorological and earth resource applications. Customers throughout the world use Integral Systems' EPOCH 2000 software product, the world's first commercial-off-the-shelf satellite command and control software package. The Orbit Analysis System (OASYS) module of EPOCH 2000 also is sold as a stand- alone product and allows operators to perform satellite orbit determination and control. In addition to these products, the Company provides systems for satellite payload processing, spacecraft integration and test, simulation, and environmental monitoring.

Victor Giacomin Joins Norsat
Norsat International Inchas appointed Victor P. Giacomin as Vice President, Finance, Chief Financial Officer, and Corporate Secretary.

He will replace Dale B. Belsher who has left the company to pursue other opportunities.

Mr. Giacomin comes to Norsat from Avcorp Industries Inc, where he served as Vice President, Chief Financial Officer, and Corporate Secretary.

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