Iridium Extends Long-Term Relationship with Boeing for Satellite Network Operations and Support


Boeing Becomes Exclusive Operations Partner for Iridium NEXT

MCLEAN, Va., July 21, 2010 - Iridium Communications Inc. (Nasdaq:IRDM) announced that it has entered into two comprehensive, long-term agreements with The Boeing Company (NYSE:BA) that redefine the relationship between the companies for maintenance, operations and support of Iridium's satellite network.

The first agreement, relating to the operation and maintenance of Iridium's current satellite constellation, transforms an agreement that Iridium and Boeing have had in place for the last ten years. Under the new agreement, Boeing will continue operating Iridium's current satellite constellation and will provide support for Iridium's satellite control system (SCS). Under the new terms, Iridium will receive significant cost savings and benefit from the release of more than $15 million in restricted cash required under the prior agreement.

The second agreement is a new support services contract under which Boeing will become the exclusive operations and maintenance provider for Iridium's next-generation constellation, Iridium NEXT. With the entry into this second agreement, Iridium will benefit from having a single operator during the transition from the current constellation to Iridium NEXT. In addition, under this agreement, Boeing will further upgrade Iridium's SCS to become fully compatible with Iridium NEXT. As part of the agreement, the two companies will create an efficient operations environment for Iridium NEXT.

"Continuing this longstanding and successful working relationship with Boeing is very important to Iridium," said Matt Desch, Iridium CEO. "Over the past ten years, the Boeing team has been a proven and trusted extension to the Iridium team. Many on our Boeing team can even trace their experience with the Iridium program back more than 15 years to the development of the current Iridium system. These new agreements will enable us to work more closely together going forward to ensure delivery of today's quality performance on the Iridium network, as well as a seamless transition to Iridium NEXT in coming years."

"We look at ourselves as being part of the Iridium family," said Steve Oswald, vice president and general manager, Boeing Intelligence and Security Systems. "These new agreements ensure that Boeing will be a key Iridium NEXT partner, and we are pleased that we will be able to continue working with Iridium in the development, operations and sustainment of this exciting program."

About Iridium Communications Inc.
Iridium Communications Inc. (www.iridium.com) is the only mobile satellite service (MSS) company offering coverage over the entire globe. The Iridium constellation of low-Earth orbiting (LEO) cross-linked satellites provides critical voice and data services for areas not served by terrestrial communication networks. Iridium serves commercial markets through a worldwide network of distributors, and provides services to the U.S. Department of Defense and other U.S. and international government agencies. The company's customers represent a broad spectrum of industry, including maritime, aeronautical, government/defense, public safety, utilities, oil/gas, mining, forestry, heavy equipment and transportation. Iridium has launched a major development program for its next-generation satellite constellation, Iridium NEXT. The company is headquartered in McLean, Va., U.S.A. and trades on the NASDAQ Global Market under the ticker symbols IRDM (common stock), IRDMW ($7.00 warrants), IRDMZ ($11.50 warrants) and IRDMU (units).

About Boeing Company Defense, Space & Security
A unit of The Boeing Company, Boeing Defense, Space & Security (http://www.boeing.com/bds/) is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $34 billion business with 68,000 employees worldwide.

CONTACT: Iridium Communications Inc.

Press Contact: Liz DeCastro, +1 (703) 287-7421, liz.decastro@iridium.com

All Topics