At GITEX 2005 last year, Inmarsat announced the launch of its newest service, Broadband Global Area Network (BGAN), in the Middle East in December 2005 and has been rolling out to the rest of the world during 2006. BGAN is an all-in-one solution that offers simultaneous voice and broadband data connectivity through a highly-portable terminal. It delivers standard IP connectivity at up to 492kbps, guaranteed data rates of up to 256kbps and circuit-switched voice at cell phone quality. To date, BGAN has 5,547 active subscribers registered on the Inmarsat network and has been used in 191 countries around the world by international broadcasters for live news reports, by aid agencies in relief efforts and crisis response, by the world’s leading oil and gas companies at exploration sites, and governments in emergency response, and by different sectors, companies, and individuals. At the GULFCOMMS exhibition this year in conjunction with GITEX 2006, representatives from Inmarsat will showcase the latest technology from Inmarsat, including live demonstrations of BGAN.
In 2006, Inmarsat also witnessed significant developments across the land, maritime and aeronautical sectors. The year’s highlights include:
Positive reception and take up of BGAN since its launch (Appendix I)
A collaboration with ACeS International to introduce a hand-held and other satellite voice services (Appendix II)
Plans to provide Inmarsat’s aeronautical solutions to enable in-flight use of GSM mobile phones (Appendix III)
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On November 15, Inmarsat reported consolidated financial results for the 3 months ended September 30, 2006 (Appendix IV):
• Third quarter total revenue $129.2 million up 8% year over year
• Mobile satellites services revenue up 10% year over year
• EBITDA $89.4 million up 20% year over year
• Strong performance across all business sectors
• BGAN revenue $5.3 million year to date, 5,547 subscribers
• BGAN take-up strong in new markets
• ACeS integration on track, first revenues from hand-held services
• SwiftBroadband demonstrated, on track to support in-flight mobile trials
Andrew Sukawaty, Inmarsat’s Chairman and Chief Executive Officer said, “Across the board it was a strong revenue and EBITDA performance for the third quarter. We recorded significant year over year and sequential quarterly revenue growth in all our reporting sectors. We are pleased with the contribution from our new BGAN service during the third quarter and in the continued interest this is generating among new and existing customers. Taking into account the expected impact of volume discounts in the fourth quarter, we are now well positioned to deliver results in line with market expectations for the full year.”
Commenting on his projections for the satellite communications industry in the Middle East in 2007, Samer Halawi, Regional Director, Inmarsat, Middle East, Africa & Central Asia, explained, “The launch of BGAN in this region was the beginning of a new era for Inmarsat and a high point for our customers in the Middle East and Africa as BGAN empowered them with a satellite solution allowing connectivity on the move with virtually global coverage. In September, we then announced the introduction of a global low-cost and handheld voice and low-speed data service which will undoubtedly open up new markets to the use of satellite services, especially for those in the Middle East longing for a global high-quality handheld voice service.” Halawi added, “Because of the increasing hunger for more bandwidth, global coverage, and cost efficiencies in the deployment of infrastructure, and because of the geographical limitations of terrestrially-based services, we anticipate the year ahead to see a continuation of those activities witnessed in 2006, and even an acceleration and globalization of those trends.”
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Today, Inmarsat stands strong at the forefront of mobile satellite communications, capitalizing on more than 27 years’ experience to deliver global voice and broadband data solutions for use at sea, on land and in the air. Inmarsat operates a constellation of 10 geostationary satellites that deliver phone, fax and data communications to every part of the world (excluding the polar regions). The advanced capability of its latest-generation Inmarsat-4 satellites – the world’s largest and most sophisticated commercial communications satellites – extend the boundaries of 3G networks to areas with unreliable, insecure or non-existent telecoms infrastructures. Two Inmarsat-4 satellites are currently in operation covering 85% of the earth’s landmass, and the company has recently announced plans to launch a third, which will then close the gap over the Pacific Ocean.
For more information on Inmarsat, visit their stand at GULFCOMMS – Zabeel Hall, Stand Z-C25.
Inmarsat plc
Inmarsat Holdings Limited, through its subsidiary Inmarsat Finance II plc, is the issuer of $450 million of 10.375% Senior Discount Notes due 2012. Inmarsat Group Limited, through its subsidiary Inmarsat Finance plc, is the issuer of $310.4 million of 7.625% Senior Notes due 2012. Both Inmarsat Holdings Limited and Inmarsat Group Limited are required by the terms of the Notes outstanding to report quarterly financial results. Inmarsat plc is the ultimate parent company of the Inmarsat group and its next results will be preliminary results for the year 2006 and are expected to be reported in March 2007.
Forward-looking Statements
Certain statements in this announcement constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks, uncertainties and other factors that may cause our actual results, performance or achievements, or industry results, to be materially different from those projected in the forward-looking statements. These factors include: general economic and business conditions; changes in technology; timing or delay in signing, commencement, implementation and performance of programmes, or the delivery of products or services under them; structural change in the satellite industry; relationships with customers; competition; and ability to attract personnel. You are cautioned not to rely on these forward-looking statements, which speak only as of the date of this announcement. We undertake no obligation to update or revise any forward-looking statement to reflect any change in our expectations or any change in events, conditions or circumstances.
