Iridium Satellite reports 17-percent revenue growth

BETHESDA, MD – July 27, 2004 – Iridium Satellite LLC’s revenues have grown by more than 17 percent in the first half of 2004, the company reported in a statement today.

This growth follows record performance in 2003 when revenues increased 44 percent over 2002 revenues, according to the company. Iridium forecasts call for continued revenue growth with flat costs.

“Our rapid growth is attributed to a disciplined marketing strategy focused on reaching key vertical markets through partnerships with major service providers,” said Chairman and CEO Carmen Lloyd. “We also offer a competitive, simplified global pricing structure.”

This growth is part of what the company called “dramatic results in the last three years.”

“We now have positive EBITDA,” explained Lloyd. “Our user base has exceeded 100,000 subscribers. Our satellite network is demonstrating exceptional longevity with continued service expected for at least the next ten years without the launch of additional satellites.”

Iridium Satellite LLC acquired the operating assets of the original Iridium system in December 2000, and relaunched global satellite communications services in March 2001. In June 2001, Iridium started offering dial-up data and direct Internet connections, followed by prepaid calling services in 2002 and short-burst data and short messaging services (SMS) in 2003.

“Iridium is well positioned for continued rapid growth as the only satellite communications system providing mobile voice and data service with global pole to pole coverage,” added Lloyd. “We offer connections for customers in places where terrestrial landlines or cellular telephone networks are unavailable, unreliable or overburdened. The unique architecture of our system, with multiple satellites in low-earth orbits (LEO), ensures uninterrupted connectivity with small, lightweight user equipment on the ground, at sea or in the air.”

While voice telephony remains the primary application for Iridium Satellite, data services represent a particularly rapid growth area, the company reported. Iridium sees remote asset tracking and telemetry as especially poised for expansion, according to Lloyd. Data services now represent approximately 20 percent of Iridium traffic.

Iridium Satellite LLC is a provider of global satellite voice and data solutions with complete coverage of the earth (including oceans, airways and Polar Regions). The service is suited for industries such as maritime, aviation, government/military, emergency/humanitarian services, mining, forestry, oil and gas, and heavy construction, according to the company.

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