Press Release

Orbital’s Satellite Imagery Affiliate Reaches Financial Restructuring Agreement

By SpaceRef Editor
September 25, 2001
Filed under , ,

Company to Provide Financial Support to ORBIMAGE Primarily With Secured and Non-Cash Contributions

Orbital Sciences Corporation has agreed to support the financial restructuring of its satellite
imaging affiliate, Orbital Imaging Corporation (ORBIMAGE), with a financing
package that includes both cash and non-cash contributions, the company stated
today.
Earlier today, ORBIMAGE announced that it had reached an agreement
with its major shareholders, including Orbital, and an Informal Committee
representing about half of the holders of its Series A Senior Notes and Series
B Senior Notes, to go forward with a financial restructuring designed to
strengthen its financial condition.

As is customary in this type of restructuring, ORBIMAGE intends to file a
petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code with
a “prearranged” plan of reorganization to be agreed to by its security
holders.
ORBIMAGE will most likely file the petition in the fourth quarter of
2001.
ORBIMAGE expects to maintain normal business relationships with all of
its customers and suppliers.

Under the terms of the agreement, Orbital would provide ORBIMAGE with $1.2
million in cash, up to $3.6 million in secured debtor-in-possession funding
and the deferral of $8.6 million provided under the Orbital/ORBIMAGE
procurement agreement, which would be converted to new secured notes to be
issued by ORBIMAGE.
Upon completion of the ORBIMAGE reorganization as set
forth under the agreement, the parties will grant each other mutual releases
of potential claims.

About Orbital

Orbital develops and manufactures affordable space systems, including
satellites, launch vehicles and advanced space systems.
Orbital is also
involved with satellite-based networks that provide wireless data
communications and high-resolution Earth imagery to customers all around the
world.
More information about Orbital can be found at: http://www.orbital.com

CONTACT:
Barron Beneski of Orbital Sciences Corporation,
+1-703-406-5000, or [email protected]

SpaceRef staff editor.