LETTER FROM…  CEO BAARD EILERTSEN

The SMART Orbital Life Extension Vehicle has successfully completed its technical analysis phase, clearing the way for full-scale development and production of the world’s first “space tug” for in-orbit servicing of telecommunications satellites.

This Phase B technical analysis was performed by an international team of space system experts, and confirmed the SMART-OLEV’s feasibility for prolonging the revenue-producing lifetimes of telecom spacecraft in geostationary orbit.  It evaluated the full mission cycle, during which a SMART-OLEV would take over the propulsion, navigation and guidance functions to maintain a telecommunications satellite in its proper orbital slot for up to 12 additional years.

Orbital Satellite Services is now positioned to authorize Phase C/D full-scale development and production, upon confirmation of an order for the vehicle’s initial mission.  Discussions are underway with several of the world’s largest operators of telecommunications satellites, including Eutelsat – which earlier this year acknowledged evaluating the SMART-OLEV’s capabilities.

In addition to confirming the vehicle’s readiness for commercial service, we have now completed the selection of our industrial supplier team, which brings together leading international space system manufacturers.

Orbital Satellite Services will be busy during the next several months as we move ahead in finalizing our first customer agreements, which will position us for the startup of SMART-OLEV production.

Baard Eilertsen
Chief Executive Officer
August 11, 2008