nice quarterly, page-2

re: nice quarterly - iridium update Sniffer, you are right about the Quarterly Report. The trajectories both of cash flow and revenues look good.

What’s most pleasing is that it is the ‘ancillary’ businesses, etsDirect & Approach, that are setting the pattern of growth.

Speaking to Michael Boyd recently, it’s plain there are many other similar opportunities open to the Company. The careful management and attention to cost control that these start-ups have demonstrated, auger particularly well for other enterprises Quadrant may have in mind.

However, rightly or wrongly, the market continues to perceive Iridium Satellite LLC as the sum of the Company’s assets.

It is timely, therefore, that this morning the Quadrant released an update on Iridium:

22 July 2004

The Manager
Australian Stock Exchange Limited (“ASX”)
Company Announcements Office


Iridium Satellite Issues Three-Year Status Report


The Directors of Quadrant Iridium Limited are pleased to provide the following release of a three year status report made by Iridium Satellite LLC (“Iridium”) covering that company’s operations.

Quadrant Iridium Limited, through its subsidiary Bareena Holdings Pty Ltd, has an investment of approximately US$20.8 million in Iridium Holdings LLC, the parent company of Iridium Satellite LLC.

Yours faithfully

Phillip MacLeod
Company Secretary
Level 1, 202 Cambridge Street
WEMBLEY WA AUSTRALIA 6014

Phone: 61 8 9489 6219
Fax: 61 8 9382 4656



Press Release

IRIDIUM SATELLITE ISSUES THREE-YEAR STATUS REPORT

Global Mobile Satellite Communications Company Achieves Dramatic Growth Since Rebirth in 2001

Iridium Satellite LLC today released a report summarizing important milestones since recommencing worldwide commercial satellite communications services in 2001.

Chairman and CEO Carmen Lloyd said, “Iridium has achieved dramatic results in the last three years. We now have positive EBITDA (Earnings Before Income Taxes Depreciation and Amortization). 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 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.”

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 2001, Iridium started offering dial-up data and direct Internet connections, followed by prepaid and crew calling services in 2002 and short-burst data and short messaging services (SMS) in 2003.


Financial Stability

Lloyd announced that revenues have grown by more than 17 percent in the first half of 2004. This growth follows record performance in 2003 when revenues increased 44 percent over 2002 revenues. 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 Lloyd. “We also offer a competitive, simplified global pricing structure,” said Lloyd.


User Base

“Iridium Satellite has signed on more than 100,000 subscribers,” said Lloyd. “We have consistently added 2,000 to 3,000 subscribers per month since our commercial service relaunch in April 2001.”

Major commercial markets include the maritime, aviation, oil and gas, construction, mining and forestry industries. In addition, Iridium serves emergency services and law enforcement, non-governmental agencies (NGOs), and federal, state and local government agencies. Iridium Satellite also provides services to U.S. military forces through a special dedicated gateway under contract with the U.S. Department of Defense. The U.K. Ministry of Defence also is a major user of Iridium Satellite services.

While voice telephony remains the primary application for Iridium Satellite, data services represent a particularly rapid growth area. 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.

The U.S. Federal Communications Commission (FCC) announced last month it is expanding Iridium Satellite’s spectrum with access to an additional 3.1 MHz to meet increasing demand.

“The FCC’s willingness to expand the spectrum available to Iridium Satellite recognizes that our rapid and sustained growth has clearly outgrown our original spectrum allocation,” said Lloyd.


Infrastructure

The satellite constellation and ground infrastructure provide complete redundancy to ensure uninterrupted service to customers. The 66 active satellites are augmented by 13 orbiting spares, which can be activated as needed. The commercial gateway is in Tempe, Arizona, USA and the satellite network operations center is in Leesburg, Virginia, USA. There are three telemetry, tracking and command center sites at strategic locations around the world.

Independently verified studies predict that the current satellite constellation’s lifespan will extend to at least 2014 without additional satellite launches. Iridium Satellite has an ongoing program of continuous technical improvements in hardware and software.

“Our current growth rate will allow us to pursue a satellite replenishment strategy that we plan to self-fund,” said Lloyd.


Distribution Channels

Iridium Satellite services are marketed to end users through a worldwide network of 44 Service Providers (SPs). These SPs have significant experience in satellite communications technology and key target market sectors, such as maritime or aviation.

Iridium Satellite also works with 17 value-added manufacturers and 21 value-added resellers. They provide specialized products and solutions for specific markets and applications. Through these partners, Iridium Satellite is rapidly expanding its offerings in growth areas such as tracking, telemetry and security, according to Lloyd.


Management Structure

Carmen Lloyd, who Iridium Satellite named Chairman and CEO in October 2003, brings a strong background in satellite communications and aerospace technology. Prior to joining Iridium Satellite, he was president and CEO of Stratos Global Corporation, an international telecom company and Iridium Service Provider. He has also served as president of Rolls-Royce’s Corporate and Regional Aircraft Engine Division, and president and CEO of Canadian Marconi Company.

“I am confident that our management team, engineering and operational specialists, and dedicated, talented employees, will take us to new levels of success in the future,” said Lloyd.


About Iridium Satellite

Iridium Satellite LLC (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). Through a constellation of 66 low-earth orbiting (LEO) satellites the Boeing Company operates, Iridium delivers essential communications services to and from remote areas where no other form of communication is available. The service is ideally suited for industries such as maritime, aviation, government/military, emergency/humanitarian services, mining, forestry, oil and gas, and heavy construction. Iridium provides service to the U.S. Department of Defense under a multi-year contract. Iridium works with 44 seasoned service partners to sell and support the service globally.