30 September 2001

Satcoms

Astrolink Ground Segment CDR Successful
Astrolink International LLC has completed the Critical Design Review (CDR) for the ground segment of its satellite communications network.

Astrolink's ground segment CDR approved the production design of the hardware and software that will provide network control of the Astrolink system. The network control elements approved will perform a number of functions, including the management, control and provision of user communications services, maintaining Quality of Service (QoS), monitoring and tracking network control operations, and performing customer service operations.

As prime contractor for the Astrolink ground segment, Telespazio SpA of Italy, part of the Telecom Italia group, led an international team supported by Ericsson AB of Sweden and Ericsson technical teams from Sweden, Italy, Norway, and France as well as US companies, including ViaSat Inc, Vertex RSI, Lockheed Martin Global Telecommunications Inc, TRW Inc and Telespazio North America Inc, the recently incorporated wholly owned USA subsidiary of Telespazio, SpA.

With the completion of the ground segment CDR, development of the Astrolink satellite telecommunications system is continuing to proceed on schedule. The first of four Astrolink satellites is scheduled for launch in the first quarter of 2003 with commercial service to commence in the second quarter of 2003.

One element of the Astrolink ground segment, which successfully completed its CDR last autumn, will provide Telemetry, Tracking and Command (TT&C) for the Astrolink satellites and is nearing completion. Facilities for installing the TT&C elements have been completed in Fucino, Italy, and Uralla, Australia. A third TT&C facility is currently being built in Brewster, Washington, USA. This facility is on schedule to be completed by the spring of 2002.

Boeing's 702 Satellites Have Solar Array Problem
The Wall Street Journal has reported that all of the BSS 702 satellites launched by Boeing are having problems with their solar arrays. Six satellites based on Boeing's 702 bus are currently in orbit.

The report said that a problem has been discovered with the satellites which causes the degradation in power available from the solar arrays over life to be more rapid than expected.

Inmarsat Awards Logica £6 Million Development Contract
Logica has secured a £6 million contract to help develop future higher bandwidth satellite communications for global mobile satellite communications provider, Inmarsat Limited.

This contract forms part of an over £30 million programme with Thrane & Thrane to build the satellite interface and other equipment that will allow Inmarsat's Broadband Global Area Network (B-GAN) services due for launch during 2004 to be transmitted to and from terrestrial networks.

Currently Inmarsat operates its Global Area Network (GAN) service which supports data speeds of up to 64 kb/s, almost seven times faster than speeds offered by current GSM networks. Its B-GAN services are planned to provide higher bandwidth services at data speeds of up to 432 kb/s based on mobile packet data technology. These are expected to be delivered via two new satellites on a virtual global basis to 80% of the land mass in which users of Inmarsat's existing services operate.

Logica and Thrane & Thrane have been contracted to jointly develop, produce and install a Radio Access Network (RAN), which supports satellite communications connectivity between Inmarsat users and the terrestrial network. Logica will supply Thrane & Thrane with a satellite interface which will be a key element of Inmarsat's B-GAN solution. This critical component supports the transfer of multimedia traffic streams between the satellites and the core network.

Inmarsat's B-GAN services are intended to allow businesses to operate where conventional terrestrial telecom infrastructures do not exist or cannot always be relied on to support the necessary data rich applications such as two-way email, web surfing, image transfer, local area network (LAN) and wide area network (WAN) access.

PAS-7 Solar Array Problem
PanAmSat's PAS-7 satellite has experienced a reduction of approximately 25% of its power capacity as a result of a fault condition PanAmSat emphasised that it expects the satellite to continue to serve existing customers.

The company is working with the satellite manufacturer to determine the long-term implications on the satellite. PAS-7, an FS 1300 model satellite built by Space Systems/Loral, was launched in September 1998 and carries 14 C band transponders and 30 Ku band transponders. It provides video, direct-to-home and telecommunications services throughout Europe, the Middle East, Africa and Asia from 68.5° E. PanAmSat also operates the PAS-10 Indian Ocean Region satellite at the same orbital location and the PAS-4 spacecraft that is available for additional backup capacity in the region.

PanAmSat maintains a policy of insurance on this satellite for approximately US$ 250 million. The company has made the preliminary determination that this event will constitute a Total Constructive Loss under the policy, which occurs for insurance purposes when 20% or more of the capacity on the satellite is lost. The company does not expect a material impact on projected 2001 revenues as a result of PAS-7's condition, and will provide financial guidance for 2002 when it issues its third quarter results.

SAT to Supply Telstar 8 Comms Simulator
SAT Corporation (SAT), a wholly-owned subsidiary of Integral Systems Inc, has been awarded a subcontract for the development and delivery of the Telstar 8 satellite communications simulator.

The subcontract is with Space Systems/Loral of Palo Alto, California, the manufacturer of the Telstar 8 satellite. The simulator provides for the ground-based testing of both the C band and Ka band transponders that will be deployed on the Telstar 8 satellite over the lifetime of the satellite.

Stena Line Invests in Satellite Communication
Stena Line has entered a five year deal with Telenor worth SEK 90 million for satellite communication for around 30 vessels in the company's fleet. With satellite communication onboard the vessels, Stena Line can provide improved service for passengers including the possibility of staying in contact with land both via the Internet and telephone irrespective of where the vessel is.

Stena Line will carry out pilot installations on four of its vessels during the autumn and by the end of next year all vessels in Stena Line's fleet will be equipped with satellite communication.

XM Satellite Radio Launches Service
XM Satellite Radio has officially launched the first US digital satellite radio service - "Radio to the Power of X" - featuring 100 coast-to-coast, digital channels of music and information.

XM's programming lineup features 71 music channels, more than 30 of them commercial-free; and 29 channels of sports, talk, children's and entertainment including 13 premiere news channels covering the latest national, world and financial developments like CNBC, CNN Headline News, CNNfn, FOX News, ABC News & Talk, USA Today, Bloomberg, BBC World Service, C-SPAN and its own XM News.

XM had originally scheduled its commercial launch for September 12 but postponed it following the tragic events in New York and Washington.

XM formally launched its service today in its two lead markets, Dallas/Fort Worth and San Diego, covering 8 million people. XM had activated several hundred customers in those markets since postponing its original launch.

In three weeks, XM's rollout expands to the entire Southwest United States, including such major cities as Los Angeles, Denver and Houston; and to the entire Southeast, including Atlanta, Miami and New Orleans, covering a combined 136 million people. In November, XM expands across the rest of the country. XM had originally planned to launch the Southeast in the final phase of its national rollout, but was able to accelerate launch of that region into October.

Military Space

US$ 12 Million for ViaSat
ViaSat Inc has been awarded an option exercise and delivery order valued at slightly more than US$ 12 million for Multifunctional Information Distribution System Low Volume Terminals (MIDS LVT) pursuant to the terms of an Indefinite Delivery/Indefinite Quantity contract awarded in January 2000.

The MIDS LVT provides secure, high capacity, jam resistant, digital data and voice communications capability for US Navy, US Air Force, and US Army platforms. ViaSat will perform work along with its teammates and planned subcontractors Harris Corporation and the Xetron subsidiary of Northrop Grumman. The period of performance will commence in September 2001 with terminal deliveries expected in December 2003.

Manned Space

EMS Technologies Completes Deliveries of ISS Antennas
EMS Technologies Inc has recently delivered a spare high-gain antenna for the International Space Station. This space-to-ground antenna, capable of data rates of up to 75 Mb/s, is used for all high data-rate transmissions and receptions to the International Space Station (ISS). Its 188 cm diameter parabolic Cassegrain reflector carries multi-channel video as well as high-speed scientific data.

Using sophisticated materials (titanium, carbon fibre and kevlar), the gimballed Ku band antenna automatically tracks NASA's Tracking and Data Relay Satellite System. Its functionality complements the gimballed S band antennas, a criticality-1 system used for low data-rate telecommunications, telemetry & command (TT&C). Two S band antennas and one Ku band antenna have already been launched, delivered and installed on board the International Space Station, ensuring complete bi-directional space-to-ground-to-space communications coverage.

This delivery is the final shipment of communications antennas for the ISS. A total of three S band (two on-orbit and one ground spare) and three Ku band antennas (one on-orbit and two ground spares) have now been delivered from EMS Technologies' Space & Technology Group in Montreal.

Launch Services

Sea Launch to be Marketed with Boeing's Delta Launcher
The Sea Launch partners and Boeing Space & Communications officials today announced their intention to have a common sales and marketing organisation for Sea Launch and Boeing Delta commercial launch services.

The new marketing and sales organisation will fall under Boeing Launch Services Inc and will be led by former Sea Launch president and general manager, Will Trafton, who will report to Gale Schluter.

A separate organisation under Schluter and Trafton will handle US government marketing and sales for the Boeing Delta. Dave Schweikle will be responsible for the sales of launch services to the US government and report to the vice president-general manager/vice president-deputy general manager of Expendable Launch Systems. Both marketing and sales organisations will be located in Huntington Beach, California.

While Boeing Launch Services Inc, will market and sell both Sea Launch and Delta commercial launch services, the Sea Launch venture will continue to operate as a separate entity.

Launches

Atlantic Bird 2

Launched: 25 September 2001
Site: CSG Kourou, French Guiana
Launcher: Ariane 44P
Orbit: GEO, 8° W
International Number: 2001-042A
Name: Atlantic Bird 2
Owner: Eutelsat
Contractor: Alcatel Space

Eutelsat's Atlantic Bird 2 is a commercial communications satellite. It carries 26 Ku band transponders with bandwidths of 72, 54 and 33 MHz. It has two fixed beams and one steerable spotbeam. Atlantic Bird 2 weighed 3,150 kg. It has a design life of 15 years.

Kodiak Star

Launched: 30 September 2001
Site: Kodiak Launch Complex, Alaska
Launcher: Athena 1

Orbit: LEO, apogee: 800 km, perigee: 800 km: inclination: 67°
International Number: 2001-043A
Name: Picosat
Owner: US Department of Defense
Contractor: Surrey Satellite Technology Limited

Orbit: LEO, apogee: 800 km, perigee: 800 km: inclination: 67°
International Number: 2001-043B
Name: Sapphire
Contractor: Stanford University and Washington University

Orbit: LEO, apogee: 800 km, perigee: 800 km: inclination: 67°
International Number: 2001-043C
Name: Prototype Communications Satellite (PCSat)
Owner: United States Naval Academy
Contractor: United States Naval Academy

Orbit: LEO, apogee: 500 km, perigee: 500 km: inclination: 67°
International Number: 2001-043D
Name: Starshine 3
Owner: NASA
Contractor: Naval Research Laboratory

Picosat is a technology demonstration satellite carrying four experiments investigating vibration isolation technology, ionospheric observations and polymer battery characteristics.

Sapphire is a student designed and built micro-satellite. The primary mission is to space-qualify two sets of "Tunneling Horizon Detector" infrared sensors designed and built by the Jet Propulsion Laboratory and Stanford University. Secondary experiments include a digital camera and voice synthesiser.

PCSat will become part of the amateur radio community's Automatic Position Reporting System (APRS) in low earth orbit receiving digitised identity and position data from amateur radio operators and transmitting it to one or more ground stations.

Starshine 3 is a reflective ball about 1 metre in diameter, covered in over 1,500 hand-polished mirrors, 31 retro-reflectors and seven clusters of solar cells powering an amateur radio transmitter.. It weights about 91 kg. The satellite will be tracked visually by students and schoolchildren around the world.

Business

American Millennium Corporation Recruits New CEO
American Millennium Corporation Inc has appointed Garrett L Thomas, former CEO and General Counsel for Quake Wireless Inc, to the position of President & Chief Executive Officer, and member of the Board of Directors.

Effective October 1, 2001, current President & CEO Andrew F Cauthen will step into the position of Vice Chairman of the Board and turn over the CEO duties to Mr Thomas.

EchoStar Completes US$ 50 Million Investment in StarBand
EchoStar Communications Corporation and StarBand Communications Inc have completed an agreement that increases EchoStar's financial investment in StarBand by an additional US$ 50 million in cash.

This agreement, which was previously announced in July, increases EchoStar's equity stake in StarBand to approximately 32%, which will further increase to approximately 60% upon commencement of the construction of a next-generation satellite to be allocated for the StarBand service. EchoStar, the parent company of DISH Network originally invested US$ 50 million in StarBand in April 2000, and is one of the largest distribution channels for StarBand. This agreement continues EchoStar's strategy to offer a complete bundled package of Internet, programming and interactive television services to its more than 6 million U.S. DISH Network customers.

Inmarsat Ventures Postpones IPO
Inmarsat Ventures plc is to postpone its initial public offering (IPO) on the recommendation of its financial advisers, Morgan Stanley, as a result of current market conditions.

Inmarsat intends to reconsider its position when financial market conditions improve.

Inmarsat had not announced a timetable for an IPO, though was reported to be close to completing preparations. Inmarsat has said that an IPO is not necessary for its business plan at this time since the company is well funded and has recently raised debt of about US$ 610 million.

Orbital Imaging Restructures Finances
Orbital Imaging Corporation (Orbimage) has reached an Agreement with an Informal Committee representing the holders of approximately 50% of its Series A and Series B 11 5/8% Senior Notes due 2005 to undertake a financial restructuring intended to strengthen the Company's financial condition and to arrange for additional working capital. Certain key investors in the Company's Series A Preferred Stock and the Company's largest common shareholder, Orbital Sciences Corporation, have also agreed on the terms of the restructuring.

As part of the Agreement, Orbimage had fortuitously procured US$ 13 million of Combined Risk Insurance covering its OrbView-4 satellite which was destroyed during a launch failure on Friday 21 September. The insurance includes coverage for risk of launch, satellite check-out, and on-orbit operations. The Informal Committee also arranged a loan enabling Orbimage to purchase US$ 50 million of additional coverage to benefit the holders of its Senior Notes. The proceeds from the Noteholder coverage is expected to be approximately US$ 34.5 million after repayment of the loan and related expenses, which will be allocated ratably to the Noteholders.

As is customary in this type of restructuring, Orbimage intends to file a petition for reorganisation under Chapter 11 of the US Bankruptcy Code with a "prearranged" plan of reorganisation to be agreed to by its security holders, most likely in the fourth quarter of 2001. Orbimage expects to maintain normal business relationships with all of its customers and suppliers. The terms of the reorganisation contemplate that the Company will raise at least US$ 6 million in new senior convertible debt prior to or shortly following the filing of the petition, and that Orbimage will have access to a US$ 3.6 million debtor-in-possession working capital facility provided by Orbital, subject to certain approvals. Orbital will also provide an additional US$ 1.2 million of funding by October 31. Orbital will also exchange US$ 8.6 million of payments due from Orbimage for New Notes as described below.

The Plan will provide for an exchange of the Company's Senior Notes, which are presently unsecured, for New Notes having a security interest in the Orbimage assets. As currently contemplated, the New Notes will be junior only to the Senior Convertible debt referred to above.

Under the plan as agreed, the New Notes would have the same interest payment and maturity dates as the Company's Senior Notes and would be issued at the same par value of the Senior Notes plus accrued interest due at the time of exchange. The New Notes will carry PIK interest payable semi-annually at 13.625% per annum through September 1, 2002, and 14.625% per annum through March 1, 2003, if the Company elects an additional PIK period. The cash interest rate on the New Notes would be the same as for the Senior Notes at 11.625% per annum payable semi-annually.

The Agreement reached with the Informal Committee is subject to certain conditions, including filing the petition for reorganisation by December 15, 2001, and the plan of reorganisation by January 31, 2002, and approval of the plan by no later than October 31, 2002. The Agreement requires the consent of the holders of 66.7% of the Senior Notes and the consent of the holders of 66.7% of the outstanding shares of the Company's Series A Preferred Stock by October 19, 2001. The Agreement is also conditional upon Orbimage raising the US$ 6 million of Senior Convertible Debt by November 20, 2001, and Orbital providing the funding to Orbimage as summarised above.

SNECMA Listing Postponed
In the current, unstable financial environment, the French Minister for Economic Affairs and Finance has decided to postpone the listing of SNECMA on the French stock market until later this year.

The French Government currently holds 97% of SNECMA's capital and the privatisation should release 25% of this capital for a listing on the stock market. This partial privatisation is expected to enable the company to develop industrial alliances and to participate in the consolidation process expected in the sector. SNECMA announced, on August 1, a 40% growth of its consolidated revenue over the first semester of 2001 at 3.4 billion Euros.

Products and Services

Loral Cyberstar Launches Secure Platform For Corporate Networks
Loral CyberStar has introduced ClearStream OverNet, a secure, high-speed, IP delivery network that allows large files, video and multimedia applications, software updates and database replications to bypass WAN congestion using CyberStar's satellite multicast capabilities.

ClearStream OverNet, the third product in the ClearStream suite of streaming media services, greatly simplifies the delivery of IP applications through the easy set-up of small diameter dishes, the unique broadcast nature of satellites and the addressing capabilities of multicasting. Terrestrial alternatives are often more costly and restrict the ability of enterprises to add new locations to their network. With ClearStream OverNet, enterprises can reliably transmit large files by sending just one stream of data from a central point directly into local area networks (LANs) at many different locations.

ClearStream OverNet provides an easy migration path to a suite of IP-based streaming media applications from CyberStar. When combined with other ClearStream products, such as ClearStream Live and ClearStream Webcast, OverNet offers a cost-effective way to deliver video to the desktop for corporate communications, training, crisis management and investor communication applications.

In addition, ClearStream OverNet takes into account the need for security at every point in the network through a combination of encryption and IRD entitlement.

An overlay network, ClearStream OverNet provides a broadband receive-only channel that is scalable from 1 Mb/s to 45 Mb/s and can simultaneously support multiple IP and MPEG live video streams as well as multiple dedicated data channels. It is easily installed into existing networks, using small external satellite dishes that link directly to a LAN, and can be rapidly expanded or redeployed as networking needs grow or change.

Toorumbee Station First with 2-way Satellite Internet for Rural Australia
Residents of Toorumbee Station in Western Queensland are the first to come on line through Telstra's new 2-way satellite Internet service that was made possible by the Federal Government's Aus$ 150 million initiative.

Max and Melinda Seidel, whose property is near St George, are the first to experience this new satellite service by Telstra, which will provide faster access to the Internet, and eliminate the need to 'dial-up' for a connection each time the Internet is needed.

This service will provide residents in remote areas of Australia with an Internet service that is always available when the computer is turned on, at prices broadly comparable with metropolitan areas.

Telstra was selected by the Australian Government through a competitive tender process to provide these services, but the offer is open to all telecommunications users in the extended zones-not just existing Telstra customers.

These services came about through the Aus$ 150 million tender to provide untimed local calls in the extended zones covering 80% of Australia.

People in these remote areas of Australia will have access to:

• calls at local call charges within their extended zone, and with the adjacent extended zones;
• calls to their 'community service town' and the community service towns of adjacent extended zones charged at a preferential rate of 27.5 cents for 12 minutes (or part thereof), and
• the 2-way satellite service dial up access at an untimed call rate.

People

EBU Appoints Director of TV
The European Broadcasting Union (EBU) has appointmented Bjorn Erichsen, managing director of DRTV, Denmark's national broadcaster, to the post of Director of the Television Department. He is to take up his position on 1 January 2002. The nomination of Mr Erichsen, 52, was approved by heads of European broadcasting organisations at the 110th meeting of the EBU Administrative Council in Geneva.

Mr Erichsen has served as managing director of DR TV since rejoining the network in 1996, having previously founded and run the European Film College in Copenhagen. Before that, he spent ten years with DR TV as programme producer. Mr Erichsen obtained a Masters in History from Copenhagen University and embarked on his professional career as teacher of economics, history and political science.

This appointment completes the renewal of the EBU management team and follows the appointment of a new Secretary General and directors of Operations and Radio earlier this summer. The former Director of Television, Mr Gaetano Stucchi, left the EBU in June 2001.

Loral Names Vice President and Assistant Treasurer
Loral Space & Communications has announced that Richard Mastoloni has been named vice president and assistant treasurer. In this position, Mr Mastoloni will be responsible for all financing activities of Loral, its subsidiaries and affiliates. Mr. Mastoloni will continue to report to Nick Moren, senior vice president and treasurer.

Mr Mastoloni, 37, joined Loral in 1997, and was most recently assistant treasurer, where he was responsible for managing Loral's equity and debt offerings, bank loans and relationships with various financial institutions.

Before joining Loral, Mr Mastoloni spent 11 years with Chase Securities Inc, as a vice president in the company's media and telecommunications investment banking group, where he executed various corporate finance and merchant banking transactions for the bank's wireless and telecommunications clients. Prior to that, Mr Mastoloni was a vice president in the global mergers and acquisitions group, responsible for advising companies across many industries on strategic and financial acquisitions and divestitures.

Mr Mastoloni received a bachelor's degree in economics from the University of Vermont in 1986 and an MBA from Columbia University in 1993.

Sea Launch Names New President
The Sea Launch Company's Board of Directors has named James G Maser as the company's new President and General Manager, effective September 10.

Until his new assignment as President, Maser served as Chief Systems Engineer for Sea Launch, focusing his efforts on systems integration, recurring engineering process improvement, mission integration cycle time reduction, vehicle performance increase and mission assurance processes. In four months, he completed an assignment as the Chairman of the Sea Launch Failure Review Oversight Board, which ultimately led to a return-to-flight status after the failure of the ICO-1 mission in March 2000.

Maser has appointed Kirk Pysher, previously Deputy Chief Systems Engineer, to succeed him as Chief Systems Engineer.

Maser, an aerospace engineer with extensive experience in program management, design and engineering leadership, came to Sea Launch in 1998 from the Boeing Delta and Evolved Expendable Launch Vehicle programs. Before joining McDonnell Douglas (now Boeing) in the 1980s, he was a research fellow at the NASA/Lewis Research Center.

Maser replaces Will Trafton, who has been appointed President of Boeing Launch Services Inc (BLS), and Vice President and Deputy General Manager for Boeing Expendable Launch Systems in Huntington Beach, California. The newly formed BLS will provide marketing and sales services for both the Sea Launch and Delta launch vehicles. Trafton will continue in his role as Chairman of the Board of Directors of Sea Launch Company LLC.

Thales Navigation Names President & CEO, and COO
Thales Navigation, a world leader in the development and manufacturing of GPS equipment with its Magellan, Ashtech, DSNP and MLR product lines, has appointed Dean E Senner as President and Chief Executive Officer. Thales Navigation earlier named Henry Gaillard to the position of Chief Operating Officer.

Senner brings to his new role more than 20 years of executive and entrepreneurial experience in Fortune 100 technology companies with expertise in profit and loss, strategic planning, engineering, operations and manufacturing. Gaillard's management experience includes five years as CEO of GPS manufacturing companies in France: MLR Electronique, DSNP and, most recently, Thales Navigation, SA. The new Thales Navigation, headquartered in Santa Clara, California, was formed July 2001 after Thales acquired Magellan Corporation.

Before joining Thales Navigation, Senner was President and Chief Operating Officer of Onvantage Inc, a business to business outsource provider of Internet content delivery solutions and services. Previously, Senner held executive positions within various Lockheed Martin operations, most recently serving as Executive Vice President of the Commercial Space Systems Company. In this role he was responsible for worldwide operations and development of commercial satellite systems serving the direct broadcast, fixed satellite, mobile satellite, and broadband markets. Prior to that assignment, Senner was Vice President of Lockheed Martin's Military Satellite Communication Programs division where he led the development of some of the nations most sophisticated communication and navigation satellite systems. He also held executive responsibility for the design and development of the next generation of GPS IIR satellites. In addition, Senner brings to Thales Navigation extensive international experience from years spent leading the formation of a telecommunications company in Europe.

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