2 December 2001


Satcoms
Developing an Iridium System to Send Cockpit Audio to the Ground in an Emergency
Etisalat Places First Order for STM's VSAT System
PanAmSat Orders Orbital Satellites
WSNet Files for US Landing Rights from Two Canadian Orbital Locations

Science
NASA Selects Pluto-Kuiper Belt Mission For Phase B Study

Technology
Optimal Energy Systems Receives Lockheed Martin Flywheel Contract

Launches
Progress M1-7
DirecTV 4S
Uragan

Business
Loral Cyberstar and ChinaSat Sign Distributor Agreement
Loral CyberStar Commences Debt-For-Debt Exchange Offers For Its Notes
Motient and TMI Comms Complete Consolidation Of Mobile Satellite Businesses
SGI and Space Imaging Sign Teaming Agreement
Telecom Italia to Sell Some Satellite Shareholdings

People
Intelsat Global Sales and Marketing Appoints VP Sales
Oswald Named Boeing Shuttle Vice President, Program Director
Space Imaging Names Executive VP of Global Alliances
TRW Names VP, Science and Technology
Verestar Appoints Chief Operating Officer
XTAR Names President of Madrid Office

Previous News


Satcoms

Developing an Iridium System to Send Cockpit Audio to the Ground in an Emergency
Honeywell has begun working with Iridium Satellite LLC to jointly develop a satellite communications link that will send continuous live cockpit audio from an aircraft in trouble to authorities on the ground.

The system is called Cockpit Audio Monitoring. Honeywell plans to develop several versions of Cockpit Audio Monitoring. The version using the Honeywell/Iridium Airsat I satellite communications system will be the first.

Honeywell announced in October that it would develop such systems in response to a US Department of Transportation request. In compliance with that request, once an authorised aircraft crew member activates the system, no one will be able to turn it off during the remainder of the flight.

To accommodate a variety of airlines and other users, Honeywell also plans to offer other Cockpit Audio Monitoring systems. These may be based on:

Etisalat Places First Order for STM's VSAT System
STM Wireless Inc's local agent has signed a contract with United Arab Emirates' Etisalat for the supply of a VSAT mesh DAMA network. The network, which is planned for immediate deployment, will provide telephone access and data connectivity to various foreign offices.

The VSAT system to be supplied by STM will be interconnected to Etisalat's advanced fibre and digital network using an existing earth station facility in Dubai. This will allow overseas government offices within the satellite's coverage area to establish reliable communications with Etisalat's domestic network.

Etisalat is the government-owned national telecommunications operator of the United Arab Emirates. Etisalat's network is comprised of extensive fibre facilities with high-speed connectivity to several international carriers.

PanAmSat Orders Orbital Satellites
PanAmSat Corp has exercised an option to buy two additional satellites from manufacturer Orbital Sciences Corp based on the company's geostationary STAR platform.

Financial terms of the deal were not disclosed.

The first satellite is to be delivered in the fourth quarter of 2003 and the delivery date for the second satellite is still to be decided.

Previously, PanAmSat ordered a single STAR class satellite from Orbital in March.

WSNet Files for US Landing Rights from Two Canadian Orbital Locations
WSNet has filed with the FCC for landing right licenses in the United States from two Canadian DBS orbital locations at 91° and 82° W.

In two separate applications, WSNet requested licenses for: an Earth station to transmit and receive signals from these orbital slots; and one million receive-only dishes. WSNet intends to use these licenses to further enhance its rural market wholesale digital satellite services.

WSNet is a wholesale provider of digital-to-home video programming, serving private and franchise cable operators, multiple dwelling units (MDUs), and small and rural cable companies. WSNet is a privately held company.


Science

NASA Selects Pluto-Kuiper Belt Mission For Phase B Study
NASA has selected a proposal to proceed with Phase B (preliminary design studies) for a Pluto-Kuiper Belt (PKB) mission, intended to explore the most distant planet in the solar system. The mission will also explore the Kuiper Belt beyond Pluto, a source of comets and believed to be the source of much of Earth's water and the simple chemical precursors of life.

The scientific value of this mission is highly dependent on a 2006 launch that achieves a flyby of Pluto well before 2020 because, after this date, Pluto orbits so far from the sun that its temperature drops to such an extent that its tenuous atmosphere freezes out and remains frozen for about two centuries. In order to ensure this launch date, NASA has established two conditions that must be successfully met at the conclusion of Phase B.

First, the mission must pass a confirmation review that will address significant risks such as schedule and technical milestones and regulatory approval for launch of the mission's nuclear power source. Second, funds must be available. Congress provided US$ 30 million in fiscal 2002 to initiate PKB spacecraft and science instrument development and launch vehicle procurement; however, no funding for subsequent years is included in the administration's budget plan.

The lack of future funding is, however, the crux of the problem with this mission. The PKB mission is likely to cost in excess of US$ 500 million - a sum not likely to be found by NASA when it is desperately cutting everything it can to fund cost overruns and inefficiencies on its flagship International Space Station project.

The mission, called New Horizons: Shedding Light on Frontier Worlds, would use a remote sensing package that includes imaging instruments and a radio science investigation, as well as spectroscopic and other experiments, to characterise the global geology and morphology of Pluto and its moon Charon, map their surface composition and characterise Pluto's neutral atmosphere and its escape rate.


Technology

Optimal Energy Systems Receives Lockheed Martin Flywheel Contract
Optimal Energy Systems Inc has won a contract from Lockheed Martin Astronautics in Denver to provide flywheel technology for the Second Generation Reusable Launch Vehicle Program.

The Launch Vehicle Program is considering several designs to improve the efficiency of payload delivery, including NASA's space shuttle.

Optimal's flywheel technology produces electrical power for space vehicles at a lower weight and with greater efficiency than battery systems. A Flywheel Power Module, to be developed under the contract, will provide electrical power peak reduction using the module's advanced pulse energy technology.

Total value of the Lockheed Martin contract with options is approximately US$ 600,000.

Optimal Energy Systems is a new-technology enterprise with a patented energy management and power conversion technology that can be applied to electrical back-up power supplies (Uninterruptible Power Systems), aviation and industrial high-speed power conversion systems, space satellite energy storage and attitude control systems, and military pulse energy systems.


Launches

Progress M1-7

Launched: 26 November 2001
Site: Baikonur Cosmodrome, Kazakhstan
Launcher: Soyuz U
Orbit: LEO, apogee: 397 km, perigee: 397 km: inclination: 51.6°
International Number: 2001-051A
Name: Progress M1-7 (ISS flight 6P)
Owner: Russian Aviation and Space Agency

This is an unmanned resupply mission for the International Space Station. It carried 2.5 tonnes of food, fuel and equipment for the space station. In addition it transported a Russian-Austrian microsatellite which will be released later from the space station.

Docking with the ISS on Wednesday was not completed successfully - whilst the initial capture of the Soyuz module went as expected, the docking port on the Soyuz capsule was not able to achieve firm latching with the docking port on the ISS' Zvezda module. It appears that there is some king of obstruction trapped in the docking mechanism on Zvezda. The station's crew will perform a spacewalk on Monday to clear the docking port of any debris. The Shuttle flight which was due to launch on Thursday last week has been delayed until after the spacewalk.

DirecTV 4S

Launched: 27 November 2001
Site: CSG Kourou, French Guiana
Launcher: Ariane 44LP
Orbit: GEO, 101° W
International Number: 2001-052A
Name: DirecTV-4S
Owner: DirecTV
Contractor: Boeing Satellite Systems

DirecTV-4S is a direct broadcast TV satellite for DirecTV's network. It is based on Boeing's 601 HP platform and features highly focussed spot beams. The satellite has a launch mass of 4,260 kg and has a spot beam payload for the transmission of local TV channels with 38 active transponders, and a national beam payload with 2 active transponders and 8 supplemental transponders. It has a design life of 15 years.

Uragan

Launched: 1 December 2001
Site: Baikonur Cosmodrome, Kazakhstan
Launcher: Proton
Orbit: LEO
International Number: 2001-053A, B and C
Name: Uragan (2 satellites) and Uragan-M (one satellite)
Contractor: Polyot

This launch placed three Glonass navigation satellites in orbit.


Business

Loral Cyberstar and ChinaSat Sign Distributor Agreement
Loral CyberStar has signed an agreement with the China Telecommunications Broadcast Satellite Corporation (ChinaSat), the state-owned enterprise that provides satellite telecommunications broadcast services throughout China. ChinaSat will offer CyberStar's entire range of services including the ClearStream broadband services.

Dedicated to providing advanced, reliable, excellent, and fast telecommunications services throughout China, ChinaSat will market CyberStar products to government agencies, national corporations and multinational enterprises. ChinaSat will also become CyberStar's in-country ground services agent, working to secure necessary licensing authorisations, conducting site surveys, procuring satellite capacity, and installing and testing customer site equipment.

With CyberStar's services, ChinaSat has the ability to offer enterprises a private, satellite-based network that can bypass most of the terrestrial Internet to avoid congestion and deliver broadband applications to multiple, geographically dispersed sites regardless of the existing infrastructure.

ChinaSat also will offer its customers CyberStar's ClearStream product suite, allowing organisations operating across China's vast geographical regions to provide standardised and comprehensive corporate communications and training services.

ClearStream Live uses open standards digital video broadcast (DVB) technology, a standard Web browser and the Windows Media Player, to deliver high-quality video and CD-quality audio communications live to the desktop or conference room monitor. By multicasting 300 kb/s video streams onto the local area network (LAN), ClearStream Live offers a bandwidth-efficient method of viewing live video and enables enterprises to reliably deliver high impact, time-sensitive live communications to multiple sites with out fear of unpredictable video performance due to Internet congestion.

ChinaSat, founded in 1985, is the first state-owned enterprise to manage the telecommunications satellite business and provide satellite telecommunications broadcast services in China. Now under the leadership of the Ministry of Information Industry, People's Republic of China, ChinaSat is charged with the responsibility to develop multimedia communications systems, broadband high-speed data transmission systems, rural telephone systems, and domestic mobile satellite telecommunications.

Loral CyberStar Commences Debt-For-Debt Exchange Offers For Its Notes
Loral Space & Communications' wholly owned subsidiary, Loral CyberStar Inc, has commenced exchange offers and consent solicitations for US$ 927 million of its debt (plus accrued interest): the senior notes due 2007 and the senior discount notes due 2007.

The exchange offers and consent solicitations will expire at midnight, New York City time, on Thursday, December 20, 2001, unless extended or terminated.

Under the terms of the offers, holders of these two Loral CyberStar notes would receive in total up to $675 million principal amount of new Loral CyberStar senior notes due July 15, 2006, together with five-year warrants to purchase up to approximately 6.7 million shares of Loral Space & Communications common stock (less than two percent of outstanding Loral shares) at 110 percent of the market price of Loral stock calculated over the ten consecutive trading days preceding the second trading day before the closing of the exchange offers.

The interest rate on the new notes will be 10%, a reduction from the 11.25% interest rate on the existing senior notes and the 12.5% rate on the existing seniordiscount notes. Because of the lower interest rate and the US$ 252 million reduction in debt (assuming 100%), Loral's annual cash interest payments will be reduced by US$ 43 million.

The terms of the exchange offers also provide that notes not tendered in exchange, if any, will remain outstanding at their original principal amounts, maturities and interest rates, but will lose the benefits of substantially all of their covenant protections.

The US$ 927 million of Loral CyberStar debt is comprised of senior notes due 2007 (principal amount US$ 443 million) and senior discount notes due 2007 (principal amount US$ 484 million, with accreted value of US$ 470 million as of October 15, 2001). If fully exchanged, holders of senior notes and senior discount notes will receive US$ 332.4 million principal amount and US$ 342.6 million principal amount, respectively, in new notes.

Closing of the exchange offers is conditional on, among other things, acceptance by holders of at least 85% of the existing notes. Holders of more than 50% of the existing notes have already agreed to participate in the exchange offers and consent to the requested amendments. The new notes will be guaranteed by Loral, while the existing notes are non-recourse to Loral.

Motient and TMI Comms Complete Consolidation Of Mobile Satellite Businesses
Motient Corporation and TMI Communications and Company LP have announced that their new joint venture, Mobile Satellite Ventures LP (MSV) has been granted the necessary regulatory approvals from both the FCC and its Canadian counterpart, Industry Canada. These regulatory approvals have allowed MSV to complete the previously announced combination of Motient's satellite operations with those of TMI Communications, and to become a standalone operating entity.

The new company has plans to develop, build and operate an innovative and spectrally efficient spot beam satellite system, complemented by ancillary terrestrial base stations. MSV's next generation satellite plan is subject to separate regulatory proceedings in the US and Canada.

As part of this transaction, MSV issued US$ 55 million in convertible notes to its joint venture partners, an investor group including Telcom Ventures LLC, Columbia Capital, Spectrum Equity Investors, MSV Investors, LLC (a subsidiary of Rare Medium Group Inc ) and Motient. Motient received US$ 60 million in the transaction, of which US$ 45 million was in cash and US$ 15 million in a note. Motient remains a minority investor in MSV.

SGI and Space Imaging Sign Teaming Agreement
SGI, the world's leading provider of high-performance computing, complex data management and visualisation solutions, and Space Imaging have signed a teaming agreement. The purpose of this one-year, renewable agreement is to facilitate co-operation between SGI and Space Imaging to expand revenues in the growing geospatial marketplace.

As part of the agreement, SGI and Space Imaging have agreed to: establish Space Imaging as an Authorised Value-Added Reseller of SGI hardware and services; establish SGI as an Authorised Reseller of Space Imaging imagery data; establish a collaborative marketing arrangement between the two companies; and establish a Joint Strategic Opportunity Committee.

Space Imaging's ground stations are powered by SGI servers that process the large files of imagery data transmitted to Earth by the Ikonos satellite. The availability of commercial, one-meter high-resolution Earth imagery has opened new geospatial markets valued in the billions of dollars for such applications as urban planning, environmental monitoring, mapping, natural disaster assessment, telecommunications network planning, oil and gas exploration and agricultural monitoring.

A Joint Strategic Opportunity Committee, which will meet on a quarterly basis, will determine mutual revenue goals in the geospatial marketplace and create business opportunities where SGI and Space Imaging can develop new solutions and generate incremental revenue. The committee will also help Space Imaging develop enhanced solution offerings that would allow it to capture non-traditional revenue around its Regional Operations Centres.

Telecom Italia to Sell Some Satellite Shareholdings
Telecom Italia has announced that it hopes to raise some 450 million Euros by selling its shareholdings in four satellite companies in attempt to reduce its debt.

The shareholdings in Eutelsat, Intelsat, Inmarsat and New Skies Satellite would be transferred to a new company. Ownership of this new company will be split between Lehman Brothers Merchant Banking Partners, IntesaBci, Interbanca and Mediocredito Centrale (total 70% shareholding) and Telecom Italia (30%).


People

Intelsat Global Sales and Marketing Appoints VP Sales
Intelsat Global Sales & Marketing Ltd has appointed Malcolm Campbell as Vice President, Global Sales & Customer Support.

Based in London, Mr Campbell will be responsible for leading and managing Intelsat's sales and customer care activities in more than 200 countries and territories around the world.

Mr Campbell has been a leading player in satellite-based communications sales for more than a decade. Prior to his current appointment at Intelsat, he was Head of Global Commercial and Sales for BT Broadcast and Satellite Services.

Mr Campbell holds a Graduate Bachelor of Commerce degree from Edinburgh University in Scotland. He will take up his appointment in early January 2002.

Oswald Named Boeing Shuttle Vice President, Program Director
Rear Admiral Stephen S Oswald (USNR) has accepted a position as Boeing Space Shuttle vice president & program director, effective December 10.

In his new position Oswald will be responsible for overall strategic direction and successful execution of the Space Shuttle program.

Boeing is prime contractor to NASA for International Space Station and subcontractor to United Space Alliance for the shuttle program. Last July Boeing announced that the HSF&E Space Shuttle Program Office would move from Southern California to Houston, and those employees would move to Houston and the Florida Space Coast.

The businesswide move allows Boeing to complement customer functions for the International Space Station and Space Shuttle programs specifically, while addressing the business's growing need for cost reductions.

Oswald replaces Stan Albrecht who will remain in Huntington Beach, California, on special assignment for the HSF&E transition.

Currently Oswald serves as the deputy commander of a Washington-based Joint Task Force that is responsible for the defence of more than 3 million Department of Defense computers and associated networks.

Oswald joined NASA in 1984 as an aerospace engineer and instructor pilot and was selected as an astronaut candidate in June 1985. He is a veteran of three Space Shuttle missions. He commanded mission STS-67 aboard the Space Shuttle Endeavour in March of 1995 and piloted two missions aboard Discovery in 1992 and 1993. With the completion of his third space flight, Oswald has logged more than 33 days in space.

After STS-67, he was assigned to NASA Headquarters in Washington DC, as deputy associate administrator for Space Operations. He was responsible for Space Shuttle, Expendable Launch Vehicles, and Space Communications for the agency. Oswald retired from NASA in January 2000.

Space Imaging Names Executive VP of Global Alliances
Space Imaging has announced the appointment of Paul Tinney to the position of executive vice president of Global Alliances. Tinney's appointment is effective immediately.

Tinney is responsible for the business development and overall management of the company's Regional Affiliate program. Regional Affiliates are members of a global network who own and operate regional operations centres that enable them to control the tasking and collection of Space Imaging's Ikonos satellite within their region.

Before joining Space Imaging, Tinney was the president and managing director of Terrapin Broadband LLC, vice president of Business Development for California Microwave and senior vice president of Global Sales & Operations for Adaptive Broadband Corporation. Prior to that, Tinney worked for Motorola for 15 years, most recently as director of Marketing, Strategy and Development Ground Systems Division for the Space and Systems Technology Group.

Tinney holds a master's of international business studies from the University of South Carolina.

Conrad Mueller, vice president of Global Alliances for six years, has been named vice president of Advanced Systems and Business Development for Space Imaging's next-generation satellite, reporting to John Copple, chief executive officer. Space Imaging received license approval from the US Government on December. 6, 2000 to build and launch a half-meter resolution, black and white (panchromatic) and two-meter colour (multispectral) imaging sensor. Mueller will be responsible for business strategies and securing funding for this next-generation imaging satellite currently in the final design phase and expected to be operational in 2005.

TRW Names VP, Science and Technology
TRW Inc has appointment of John Daegele to the position of vice president of science and technology, reporting to David M Cote, chairman, president and chief executive officer. He succeeds Pete Staudhammer who is to retire on December 31 after more than 40 years with the company.

Daegele began his career at TRW 18 years ago as a communication system engineer at Space & Electronics (S&E) in Redondo Beach, California. Since then, he has served in a variety of system engineering leadership and program management roles spanning nearly every business area within S&E and several within TRW Systems. Most recently, he was director of indium phosphide programs in TRW Ventures.

Daegele earned a bachelor of science in electrical engineering from the University of Notre Dame and a master's degree in electrical engineering from the University of Southern California. He is also a graduate of the Executive Program in Management from the Anderson School at the University of California at Los Angeles (UCLA).

Verestar Appoints Chief Operating Officer
Verestar Inc has announced that Ray O'Brien has been named Chief Operating Officer. Mr. O'Brien, formerly Senior Vice President of Sales for Verestar, will continue to lead the sales organisation in addition to managing operations and the development of business communications solutions for customers around the world. He will report to David Garrison, Chairman and Chief Executive Officer of Verestar.

O'Brien joined Verestar in January 2001 and brings over 20 years of telecommunications experience to the Company. Prior to joining Verestar, he held executive level positions with companies including Sprint and SkyTel. During his 12 years with Sprint, O'Brien had a broad range of responsibilities including President of several business units. At SkyTel, he introduced the first two-way narrowband PCS network.

XTAR Names President of Madrid Office
XTAR, a joint venture of Loral Space & Communications and Hisdesat, has announced that retired General Miguel Valverde Gomez has been named president for European and Latin American operations for XTAR Services, XTAR's sales and marketing unit located in Madrid.

Mr Valverde, 61, has served in numerous important program management positions with the Spanish Air Force, and was most recently director general of armaments and material (DIGAM) at the Spanish Ministry of Defence, where he was responsible for the planning, directing, and controlling of all programs and acquisitions within the Spanish Ministry of Defense.

During his 40-year career with the Spanish Air Force (SAF), Mr Valverde performed numerous duties as a fighter pilot and strategic planner. During the Gulf War, Mr Valverde was Commander of Torrejon Air Base (Spain) and the 12th Wing Commander of the SAF.

Mr Valverde also gained extensive experience in the international community through the development of bilateral relations with more than 30 nations around the world, distinguishing himself during significant NATO and other international assignments.

XTAR, based in Washington DC, is a satellite operator that will provide X-band satellite communications services to government users in the United States, the Spanish Ministry of Defence, and other friendly nations. The company's first satellite, XTAR EUR is currently under construction at Space Systems/Loral (SS/L) and is scheduled to enter service in 2003.



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