Business Services Industry

Globecomm Systems Awarded $20.7 Million Contract to Provide Wireless Phone Services to 200 Rural Villages Throughout Alaska

Business Wire, June 4, 2007

HAUPPAUGE, N.Y. -- Globecomm Systems Inc. (NASDAQ: GCOM), a global provider of end-to-end value-added satellite-based communications solutions, announced today that the Company has been awarded a contract valued at $20.7 million from General Communication Inc. (Nasdaq: GNCMA), an Alaska-based company providing voice, video and data communication services to residential, commercial and government customers, to provide wireless phone services to 200 rural villages throughout Alaska.

The network will combine Globecomm's SatCell switching solution with UTStarcom's MovingMedia 2000 cellular soft switch platform and Vanu[R] Inc's (www.vanu.com) Anywave[R] Radio Access Network containing the first software-defined base station to be certified by the FCC. This unique wireless infrastructure approach provides GCI with the option to simultaneously operate multiple standards on a single network. This approach eliminates the need for costly hardware duplication when new waveforms are introduced instead of the traditional approach that utilizes specialized hardware that is costly and inflexible.

The system architecture is based on distributed soft switch architecture with local survivability. The key design attribute is that all services will make use of common hardware platforms initially deployed for GSM. Upgrades to CDMA, 3G, Wimax or other broadband capabilities are performed remotely via software, which significantly minimizes operational expenses and additional capital investment as the operator does not need to physically go back to the site while increasing their offered services as technology advances.

This offering is very attractive to rural wireless operators and is a culmination of a detailed multi-year strategy by Globecomm to penetrate the wireless service market through forging relationships with technology leaders such as UTStarcom and Vanu[R], and is the basis for the Company's hosted switch offering leveraging previous investments made by the Company.

David Hershberg, Chief Executive Officer and Chairman of Globecomm Systems Inc., said "This is a very important program for the Company and represents a milestone in our efforts to be a major player in providing small to medium size cellular systems to remote locations. GSI is a leader in innovative technology and the system to be supplied by Globecomm with our partners UTStarcom and Vanu[R] represents the latest and most innovative approach to provide telephone and roaming services in a difficult environment of many small to medium locales throughout the state of Alaska. This technology is extremely cost effective and provides wireless service capabilities, including roaming, and be a model to be deployed in many parts of the world. The next large market for cellular will be for systems like this and GSI and our partners expect to be major players in its development."

About Globecomm Systems

Globecomm Systems Inc. provides end-to-end value-added satellite-based communication products, services and solutions by leveraging its core satellite ground segment systems and network capabilities, with its satellite communication services capabilities. The products and services Globecomm offers include pre-engineered systems, systems design and integration services, managed network services and life cycle support services. Globecomm's customers include communications service providers, commercial enterprises, broadcast and other media and content providers and government and government-related entities.

Based in Hauppauge, New York, Globecomm Systems also maintains offices in Washington, DC, Hong Kong, the United Kingdom, the United Arab Emirates and Afghanistan.

Certain of the statements contained in this press release may be deemed forward-looking statements. Such statements, and other matters addressed in this press release, involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially from these statements and matters include risks and other factors detailed, from time to time, in the Company's reports filed with the Securities and Exchange Commission, including, but not limited to, the Company's Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K, which the Company urges investors to consider. These risks and other factors include, but are not limited to general and political and economic instability in the United States and abroad, including the hostilities in Iraq and Afghanistan.

COPYRIGHT 2007 Business Wire
COPYRIGHT 2008 Gale, Cengage Learning

 

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