[May 6, 1999]

Astrolink Receives Funding For On-Demand Wireless Broadband Service

Astrolink LLC, a strategic venture initiated by Lockheed Martin, announced that it has received US$900 million in equity from founding partners Lockheed Martin Global Telecommunications, Telespazio and TRW Inc. With this funding Astrolink has begun construction of the system, which will be the world's first global, on-demand, wireless broadband service provider, scheduled to offer service in 2003.

Lockheed Martin Global Telecommunications Group is investing $400 million in Astrolink LLC; Telespazio, a company of the Telecom Italia Group, is investing $250 million; and TRW is investing $250 million. Each of the founding partners will have a minority ownership position in the $3.6 billion Astrolink venture.

Astrolink will focus on the high-growth area of broadband data services, carrying traffic for Internet, intranet, multimedia and corporate data networks. Customers will be able to install small satellite dishes at businesses and homes, to quickly and inexpensively connect to high-speed networks. The service will be complementary and compatible with other broadband services like fiber optic transmission.

However, unlike costly leased line connections, Astrolink's services will be "bandwidth on demand," with customers paying only for the connection time and data transmission services they use.

The first Astrolink geostationary, Ka-band satellite is scheduled for launch in 2002, followed by the launch of three additional satellites at six-month intervals. The first satellite will provide broadband data communications services to customers in Europe and North and South America. The second, third and fourth spacecraft will extend the network worldwide. Up to nine satellites will eventually be placed in five orbital positions, in response to market demand.

Astrolink is being launched in response to the unprecedented global growth of the Internet and electronic services. Astrolink will provide end-to-end data access to consumers around the world. According to a 1998 analysis from Booz-Allen & Hamilton, a major international consulting firm, the annual potential for global broadband services will grow to nearly US$200 billion by 2005, and space-based broadband services will capture 10-15 percent of that market.

Lockheed Martin will provide the company's spacecraft, systems integration and launch services, with Lockheed Martin Global Telecommunications acting as one of Astrolink's service providers. Telespazio will supply the worldwide ground systems for the venture and will manage and operate the overall satellite and network control systems during the operational phase. Telecom Italia will market Astrolink services in Italy and through its affiliated companies in Europe and Latin America. TRW will build the digital, packet-switched communications payloads for the satellites, and will have the opportunity to be an Astrolink service provider.

Astrolink is led by President and CEO Celso Azevedo, who has more than 30 years of international exprience in satellite telecommunications. Azevedo came to Astrolink from DirecTV International, where he served as senior vice president responsible for global business development. He also served as a board member of DirecTV Latin America.

"Today's announcement is a major step toward changing business communications," Azevedo said. "With the business and technological strengths and investments of our founding partners, we have taken the lead in the race to deploy the first of a new generation of flexible, reliable, high speed, global wireless data services. We will provide exceptional value both to businesses and consumers."

"We are in active discussions with additional investors and service providers, and we plan to announce agreements with them in the near future," Azevedo added.

"Securing $900 million in equity is the mechanism by which we move Astrolink from the drawing board to the launch pad," said John Sponyoe, CEO of Lockheed Martin Global Telecommunications. "For Lockheed Martin Corporation, Astrolink capitalizes on our systems integration expertise and our A2100 satellite technology. For Lockheed Martin Global Telecommunications, Astrolink is consistent with our resolve to establish a leadership position in the rapidly expanding telecommunications services marketplace."

"Astrolink's global, wireless broadband capability will add to the service portfolio that Telecom Italia offers its customers in Italy and through Telecom Italia's international affiliates," said Sabatino Stornelli, joint director general of Telespazio. "Astrolink is an important element in Telespazio's and Telecom Italia's global service strategy, and we are pleased to bring our expertise in satellite ground systems and system operations to this exciting venture," he continued.

"TRW's unmatched experience in digital broadband space communications will enable Astrolink to stay ahead of its competition. We are delighted to become a founding partner in this rapidly evolving venture," said Timothy W. Hannemann, executive vice president and general manager of TRW Space & Electronics Group. "As the preeminent builder of operational bandwidth-on-demand satellite payloads, TRW will supply a technical solution that lowers costs, reduces risks and
shortens development time," he said. "That technology will enable Astrolink to reach the market first with fully interactive, worldwide broadband, multimedia services."

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