Press Release

Iridium Satellite Acquires Assets of Iridium LLC

By SpaceRef Editor
December 12, 2000
Filed under ,

Iridium Satellite LLC today
announced that it has completed the acquisition of the operating assets of
Iridium LLC and its subsidiaries.
With the asset transfer complete, Iridium
Satellite LLC now owns all of the former assets of Iridium LLC, including the
satellite constellation, the terrestrial network, Iridium real property and
intellectual property owned by Iridium LLC.
With a purchase price of $25
million and a cost structure that amounts to less than $7 million per month
for all operations, the Company expects that it will be able to deliver
extremely competitive satellite communications services to the market.

Iridium Satellite LLC will begin service to the U.S. government
immediately.
By the end of the 1st quarter of 2001, the Company will launch
commercial satellite communications services to heavy industry and other
government customers.
The marketing strategy will be to focus on industrial
clients whose operations require reliable communications to and from remote
areas of the globe where terrestrial systems are not available.
The Iridium
system has the unique ability to reach all of the world’s remote areas,
including the airspace, the oceans and the many under-developed parts of the
globe that currently have no communications systems.
Specifically, the
Company will pursue industrial segments including aviation, maritime, oil &
gas, mining, heavy construction, forestry, emergency services and the leisure
market.

“We do not see Iridium as a mass consumer service,” said Dan Colussy,
Chairman of Iridium Satellite LLC.
“It is a communications service that
addresses the very specific needs of the industrial markets and other
specialized segments.
Because of our significantly reduced cost structure and
Iridium’s unique system capabilities, we will be able to serve these markets
more effectively than any other existing service.”

Iridium Satellite will begin service with voice and data capabilities of
2.4 Kbps.
The Company expects to offer enhanced data and Internet capability
at 10 Kbps within six months of service launch and short burst messaging by
the end of 2001.
Iridium satellite also plans to offer specialty equipment
for aviation, maritime and fixed applications.

Iridium Satellite LLC has contracted with The Boeing Company to operate
and maintain the satellite constellation, and Motorola has agreed to provide
subscriber equipment.

SpaceRef staff editor.