AssureSat Picks Space Systems/Loral to Build Two High-Powered Satellites for Unique New In-Orbit Backup Service

Business Wire, May 3, 2000

Business Editors

EL SEGUNDO, Calif. and NEW YORK--(BUSINESS WIRE)--May 3, 2000

AssureSat also to provide backup protection to Loral Skynet

AssureSat(TM), Inc., has awarded a contract to Space Systems/Loral, a subsidiary of Loral Space & Communications, to build two high-powered, specially designed satellites, it was announced today. With these new geostationary satellites, AssureSat will launch the first in-orbit backup protection service for the world's geostationary fixed satellite service (FSS) communications satellite operators, beginning in 2002.

Under separate agreements, Loral Skynet, a fixed satellite services operator and also a subsidiary of Loral Space & Communications, will become an AssureSat customer once service becomes available, giving Skynet the ability to provide a back-up option to its many valuable customers. In addition, Loral Skynet will provide telemetry, tracking, and control for the AssureSat fleet from its Hawley, Pennsylvania, facility.

The satellite manufacturing agreement and the two Loral Skynet agreements are contingent upon AssureSat's completion of necessary financing. AssureSat, Inc. was founded in 1998 to provide backup restoration services to the world's FSS geostationary satellite operators. Its shareholders include Securitas Capital, a global equity investment company funded by Swiss Reinsurance Company and Credit Suisse Group, and SpaceVest, L.P., a venture capital fund which makes equity investments solely in the space industry.

Loss Prevention

Once in orbit, the AssureSat satellites will be able to provide backup protection to most geostationary satellite operators by moving quickly to appropriate orbital slots to take over the communications tasks of malfunctioning spacecraft or those whose launches have failed, thus insuring service for the operator's customers. The two new satellites are scheduled to be launched in 2002.

"AssureSat fills an important void in risk management for a high percentage of the world's satellite operators, since an inoperative satellite will deprive the operator of revenue equal to two to five times the cost of satellite," Jerry Farrell, president and chief executive officer of AssureSat said. "Satellite insurance can cover the cost of replacing lost hardware, but in-orbit operational backup provides a cost-effective way for a satellite operator to retain customers and protect both its revenue stream and its customer relationships."

"Based upon historic satellite launch and in-orbit failure rates, we estimate an average of two or three launch and one to two in-orbit failures a year -- with few options for recovery," Mr. Farrell said. "The need for our unique service is obvious. Indeed, the initial reaction to the concept within the industry has exceeded our own high expectations. We expect to announce additional customers in the upcoming months. We obviously feel that SS/L's excellent reputation for reliability enhances the appeal of our service."

Bernard Schwartz, chairman and chief executive officer of Loral, said, "We believe that the AssureSat protection service is an important, positive development for our industry. We are pleased to bring SS/L's record of reliable operation together with AssureSat's plan for a flexible backup service for satellite operators and their customers."

Satellite data

The unique design of the spacecraft will allow them to operate on all three ITU region frequency plans, and the antennae will be steerable in flight to offer variable footprint coverage in both the C and Ku frequency bands.

The AssureSat satellites will each carry 36 C-band transponders and 36 Ku-band transponders. Total satellite power will be 10 kW at end of life. Loral has begun limited production, with full production to begin upon AssureSat's completion of the required additional financing.

The AssureSat spacecraft are based on SS/L's space-proven three-axis, body-stabilized 1300 bus. SS/L's satellites, which have amassed nearly 800 years of reliable on-orbit service, are designed to achieve long useful orbital life through use of bipropellant propulsion and momentum-bias systems for excellent stationkeeping and orbital stability. A system of solar arrays and batteries provides uninterrupted electrical power.

The Companies

AssureSat's chairman is Mark S. Fowler, the former chairman of the U.S. Federal Communications Commission (1981-1987). Its CEO, Jerald F. Farrell, was president of Hughes Communications Galaxy (1984-1996), and president and CEO of Hughes Communications, Inc. (1996-1997). Chief Operating Officer Bruce R. Lederman was formerly lead outside counsel for Hughes Communications Inc., and a senior partner at the international law firm of Latham and Watkins. Frederick L. Judge, its executive vice-president, was president and CEO of Linkabit Wireless, Inc., a manufacturer of earth station products, from 1994 to 1999, and senior vice-president and COO of Hughes Communications, Inc. from 1990 to 1994. For more information, visit AssureSat's web site at www.AssureSat.com