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Iridium Satellite Announces Third Quarter 2006 Results
Company Posts Growth in Subscribers and Earnings; Plans for Next Generation Network

BETHESDA, Md., Nov. 8 /PRNewswire/ -- Iridium Satellite LLC announces that it now has approximately 169,000 subscribers worldwide as of September 30, 2006 versus approximately 137,500 subscribers at the same time last year. For the nine months ended September 30, 2006, Iridium posted total revenue of $159.3 million. Iridium's total revenue in the third quarter was $54.7 million. Third quarter 2006 EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) was $14.0 million. EBITDA through nine months was $39.9 million. Iridium results show considerable momentum, particularly from increased demand for voice and data services from commercial customers. Commercial Service revenue continued to grow, and it now comprises approximately 70 percent of total revenue.

Next Generation Iridium

"With seven consecutive quarters of profitability, Iridium is in a strong position to move forward with its next generation constellation and service plans," said Matt Desch, who was appointed as Chairman and CEO of Iridium Satellite LLC in September. "We're running the world's largest commercial mobile satellite communications network, and providing the highest quality and most reliable voice and data communications service in the industry. Since independent studies indicate we can expect full network operations into the next decade, we have ample time to ensure a smooth transition to our next generation constellation."

Iridium is working with leading innovators inside and outside the industry to design a new constellation that will be an IP-based, end-to-end system. It will maintain the security and global coverage customers count on today, while increasing the bandwidth available to users, supporting multiple devices, and driving down costs. Iridium is planning its new network to be operational until at least 2030, providing new offerings such as portable and fixed broadband communications, and wide area broadcast services. The new system will be backward compatible with its current services.

"At the same time, we're investing in our current constellation to develop capabilities in ways never thought possible," Desch said. "We're developing new services and working with partners to foster many new Iridium applications."

Third Quarter Highlights

Iridium cited the following previously announced highlights in the third quarter:

Growth In Data Business

Demand for Iridium data services increased 44 percent over the same period last year. In the first quarter of this year, Iridium began delivering its new, lower-cost satellite data modem, the 9601 Short-Burst Data (SBD) transceiver. The company designed the 9601 to optimize two-way data links.

"Many Iridium customers are realizing that the compact size and low latency of the 9601 make it the industry's most ideal solution for small package, time-sensitive data communications applications," Desch said. "We're way ahead of plan in delivering 9601 units for applications in supply chain management, field force automation and remote asset tracking. High demand is coming from markets such as heavy equipment, homeland security, supply chain logistics, maritime, automotive, industrial equipment, trucking, railroads, oil and gas, utilities and government. I continue to be impressed by the way our exceptional partner base has broadened awareness in the market about the critical, embedded data communications needs only Iridium can address," Desch added.

For example, in the third quarter, Euro Telematik, a manufacturer of fleet tracking and communications solutions, completed its first installation of an Iridium-based aircraft tracking and communication system for the Luxembourg Air Rescue (LAR) service. Also, in conjunction with service provider Marlink, Iridium provided two-way data communications via a buoy-based system that measures ice thickness in the Arctic Ocean to help researchers detect climate change in high latitudes. This is an excellent example of Iridium's ability to provide remote telemetry, with very low latency, in places beyond the reach of other satellite communication networks.

Infrastructure Enhancement

Iridium opened a new satellite ground station in Fairbanks, Alaska with three Iridium earth terminals. The company has plans to add five more earth terminals before year-end 2007. Iridium officially opened this new telemetry, tracking and command/control (TTAC) station for additional layers of network visibility, redundancy, flexibility and reliability. It adds command and control capabilities, and provides remote access to satellites from Iridium's existing gateways. This new ground station is facilitating Iridium's goal of having the highest level of redundancy and flexibility in providing voice and data services to Alaska and to the rest of the world.

Conversions To Iridium On The High Seas

Wilson Ship Management announced this quarter that it outfitted its fleet of more than 45 ships with Iridium terminals in a move to provide a cost- effective integrated Ship Security Alert System (SSAS) and e-mail solution. Zodiac Maritime Agencies Ltd. equipped its fleet of 132 ships with an Iridium- based e-mail system. And, the United Kingdom's Maritime and Coastguard Agency (MCA) equipped its newly formed firefighting teams with Iridium satellite phones for reliable communications when responding to fires on ships in U.K. coastal waters.

Military, Government and Healthcare First Responders Saving Lives

Iridium and Raytheon's JPS Communications announced an initiative to provide first responders a fully interoperable communications service for use in disasters. The effort gives customers access to Iridium services packaged with the JPS ACU product line, including the ACU-1000, which can interconnect up to 24 communications devices at one time. Interconnected devices can include those based on satellite communications, radio, cellular and land- based networks. First responders can now use Iridium and the ACU to keep connected no matter how badly natural or manmade disaster affects a surrounding area or telecommunications infrastructure. Also, Iridium service provider AirCell, Inc., in conjunction with MedAire, Inc., launched a service that offers in-flight, on-demand medical assistance from ground-based health experts through the Iridium satellite network.

Corporate News

Iridium enhanced its leadership team and financial strategy in the third quarter, as well. Matt Desch joined in September as Chairman and CEO. Desch was most recently CEO of New Jersey-based Telcordia Technologies, Inc. and has spent the last 15 years in the mobile communications industry. Alvin B. ("Buzzy") Krongard joined the Iridium Board of Directors. Krongard is the former Chief Executive Officer and Chairman of the Board of Alex.Brown Incorporated, and served with U.S. Central Intelligence Agency (CIA) first as Counselor to the Director, and then as Executive Director. The company also announced the completion of $210 million senior secured credit facilities to repay existing credit facilities, provide cash collateral for a letter of credit, return capital to the company's equity investors, and general corporate purposes.

About Iridium Satellite

Iridium Satellite LLC (http://www.iridium.com/) is the only provider of truly global satellite voice and data solutions with complete coverage of the earth (including oceans, airways and Polar Regions). Iridium delivers essential communications services to and from remote areas where no other form of communication is available. The Iridium constellation consists of 66 low earth orbiting (LEO), cross-linked satellites and has multiple in-orbit spares. The constellation operates as a fully meshed network and is the largest commercial satellite constellation in the world. The Iridium service is ideally suited for industries such as maritime, aviation, government/military, emergency/humanitarian services, mining, forestry, oil and gas, heavy equipment, transportation and utilities. Iridium provides service to the U.S. DoD. The company also designs, builds and sells its services, products and solutions through a worldwide network of more than 100 partners.

SOURCE: Iridium Satellite LLC

CONTACT: Liz DeCastro of Iridium Satellite LLC, +1-301-571-6257,
[email protected]

Web site: http://www.iridium.com/