Press Release

ORBIMAGE Announces Results for First Six Months of 2004

By SpaceRef Editor
September 3, 2004
Filed under , ,

ORBIMAGE Inc., the Dulles, VA based satellite imaging company, today
reported results for its first six months ending June 30, 2004. The report is
available on the Company’s website at

Total revenues were $11.76 million and $3.00 million for the six months
ended June 30, 2004 and 2003, respectively. Net loss for the six months ended
June 30, 2004 and 2003 was $12.81 million and $5.74 million, respectively.
Total revenues in the first six months of 2004 reflect the commencement of
OrbView-3 operations. Net loss in the first six months of 2004 reflects an
increase in operating costs (including depreciation) resulting from the
commencement of OrbView-3 operations and from interest expense on our Senior
Notes and Senior Subordinated Notes issued on December 31, 2003.

“Our financial performance in 2004 thus far is in line with the statements
we made in our last conference call with investors,” said ORBIMAGE’s President
and Chief Executive Officer Matthew O’Connell. “Our six month results reflect
the progress we have made in commencing our OrbView-3 operations. We now are
delivering imagery on a regular basis to three of our international ground
station partners and the U.S. Government. As we previously disclosed, at the
end of the first quarter, we signed an agreement with the U.S. Government to
provide imagery and processing services for at least the next two years under
the ClearView program. During the second quarter we signed a task order under
the ClearView program for processing services to be provided to the U.S.
Government. We are continuing to work on building our business and are
actively engaged in pursuit of new opportunities, including bidding on a new
government program, called the NextView Second Vendor program, which would
involve construction, launch and operation of a next generation very high-
resolution satellite.”

ORBIMAGE also announced that it is planning an investor conference call to
discuss its first six month financial and operational results to be held in
September. The Company will provide information for that call by press
release and by posting on its website as soon as it is scheduled.


ORBIMAGE is a leading global provider of Earth imagery products and
services, with a constellation of digital remote sensing satellites and a
worldwide integrated image receiving, processing and distribution network.
The company currently operates the new OrbView-3 high-resolution satellite
launched on June 26, 2003 which offers one-meter panchromatic (black and white)
and four-meter multispectral (color) digital imagery on a global basis and the
OrbView-2 ocean and land multispectral imaging satellite that was launched in

For more information about ORBIMAGE, please visit our web site at

This release contains forward-looking statements within the meaning of
section 27A of the Securities Act and Section 21E of the Securities Exchange
Act of 1934, as amended. These forward-looking statements involve known and
unknown risks and uncertainties. ORBIMAGE’s actual financial results could
differ materially from those anticipated due to the company’s dependence on
conditions in the remote sensing industry, the level of new commercial imagery
orders, production rates for advanced image processing, the level of defense
spending, competitive pricing pressures, start-up costs and possible overruns
on new contracts, and technology and product development risks and

SpaceRef staff editor.