ESA and Galileo Industries sign preliminary contract for first construction phase

Munich, 21 December 2004 – The European satellite navigation project Galileo
is beginning to take shape. On Tuesday, the European Space Agency (ESA) and
Galileo Industries signed a preliminary contract in Paris for the
In-Orbit-Verfication-Phase (IOV). With a 38 percent stake, EADS Astrium is
the largest shareholder in Galileo Industries and will take on important
work packages as the major subcontractor in this initial phase.

“After extensive discussions, this authorisation to proceed enables us, at
last, to get started on building the Galileo satellites,” says Evert Dudok,
Director of Earth Observation, Navigation and Science at EADS Astrium. “By
the end of the decade, a global independent satellite navigation system,
under civil control, will be available to all.” Dudok estimates the value of
the subcontracts that will be awarded to EADS Astrium, as part of this first
agreement between ESA and Galileo Industries, to be of the order of 75
million euros. The preliminary contract covers the first work packages for
the IOV-Phase, which comprises the construction and launch of the first four
Galileo satellites and the in-orbit testing of this initial part of the
overall system.

Contracts between ESA and the space industry on the entire IOV phase should
be finalised by the middle of next year. The total contract value for this
phase, amounting to about 950 million euros, will cover the first four
Galileo satellites, due for launch in 2008, and the development and
operation of the associated ground infrastructure. A further 26 satellites
will follow to make up the 30 required in the Galileo constellation. It is
expected that Galileo will be fully operational by the end of the decade.

As the largest shareholder in Galileo Industries, EADS Astrium, based in
Germany, the United Kingdom, France and Spain, will play a significant role
in the construction phase of these Galileo satellites. The contract to build
the satellites will be managed by EADS Astrium in Ottobrunn near Munich and,
in addition, EADS Astrium Germany will be responsible for systems
engineering and parts of the ground segment. Responsibility for the
navigation payload as well as the management and system engineering of the
ground control segment which monitors and controls the satellites, will be
in Portsmouth, UK. The Toulouse site in France will contribute to the ground
mission segment, which will monitor the signal quality of the satellites.
EADS Astrium Spain is also participating in the Galileo programme and
technical experts from all countries are already being assigned to Galileo
Industries by EADS Astrium.

Galileo will stimulate a step change in the role of satellite technology in
the daily lives of both the public and business, from satellite positioning
chips in mobile phones, to a vast array of public services including
transport management and personal mobility applications. In complimenting
GPS, it will give increased accuracy and integrity, particularly in built-up
areas and it will guarantee a role for European industry in the rapidly
expanding satellite navigation market,
EADS Astrium is Europe’s leading satellite system specialist. Its activities
cover complete civil and military telecommunications and Earth observation
systems, science and navigation programmes, and all spacecraft avionics and
equipment. EADS Astrium, wholly owned subsidiary of EADS SPACE, which is
dedicated to providing civil and defence space systems. In 2003 EADS SPACE
had a turnover of ?2.4 billion and 12,000 employees in France, Germany, the
United Kingdom and Spain.

EADS is a global leader in aerospace, defence and related services. In 2003,
EADS generated revenues of ? 30.1 billion and employed a workforce of more
than 100,000.