Iridium Satellite Signs Deal with Telstra

Iridium Press Rel: Iridium Satellite Signs Deal with Telstra

Document date: Wed 01 May 2002 Published: Wed 01 May 2002 10:42:47
Document No: 215539 Document part: A
Market Flag: Y
Classification: Other
QUADRANT IRIDIUM LIMITED 2002-05-01 ASX-SIGNAL-G

HOMEX - Perth

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Iridium Satellite LLC, which owns and operates the world's first and
only global wireless communications system, today announced that
Australia's Telstra Corporation Limited ("Telstra") signed a service
partner Agreement to market and sell Iridium services.

The multi-year deal will enable Telstra to retail Iridium services
and equipment to strengthen rural and remote service throughout
Australia.

Iridium Satellite launched service in April 2001 after purchasing the
assets of the bankrupt Iridium LLC.

With competitive pricing and complete coverage of Australia, both
parties anticipate a new level of interest in Iridium services across
Australia's rural and remote regions.

Iridium Satellite's CEO, Gino Picasso said high costs previously
posed a major barrier to entrants into the satellite services market.

"However, the new Iridium's affordable pricing, business model and
leadership has helped overcome these barriers and is Proving to be a
real success story,"

"The Telstra-Iridium agreement demonstrates that affordable satellite
communications have an important role to play in remote markets,"
said Mr Picasso.

"The Australian market in particular has unique attributes, including
vast remote regions and highly developed industries that operate in
those territories, that make satellite communications whether mobile
or fixed, industrial or in the home, a critical part of the
telecommunications infrastructure," Mr Picasso said.

Eighty-six percent of the world's landmass and all of its oceans are
in areas without wireless or landline service coverage. The Iridium
satellite network service addresses this situation by providing
coverage in all ocean areas, air routes, and landmasses - even the
Poles. For people who live, work and travel in areas outside cellular
coverage or in areas without landline services, Iridium offers an
immediate, viable solution.

Iridium's competitive pricing and comprehensive constellation played
a significant role in Telstra's decision to sign on as an Iridium
service partner, said Quadrant Iridium Limited Chairman Michael Boyd.

"Telstra's commitment to offering satellite services sends a strong
signal to the market regarding the viability of this business and the
strength of Iridium's new model. We expect to achieve significant
gains in Australia and throughout the region as result," Mr Boyd said.
Telstra will provide Iridium services on a non-exclusive basis in
Australia. The company will work closely with Iridium's Asia Pacific
market coordinator, Quadrant Communications, to market and sell
Iridium services including voice, data and text messaging. Telstra
will also support a range of specialty equipment built for use with
the Iridium system.

Quadrant Iridium Limited, which is a significant investor in the
Iridium project, facilitated the negotiations with Telstra. Under the
deal, Telstra will purchase equipment and airtime from Iridium and
will resell it through its existing distribution network. Like all
service providers in Iridium's global network, Telstra will be
responsible for providing the crucial link to the customers by
acquiring, provisioning and supporting their use of the service.

For further information please call:

Pia De Lima Michael Abela

Burson-Marsteller, Melbourne Quadrant Communications
(03) 9685 8539 /0418 311 437 (03) 9618 8903 / 0412 877 460
[email protected] [email protected]

Yee Shan Heng
Burson-Marsteller, Singapore
(65) 6331 5233
[email protected]


ABOUT TELSTRA, CORPORATION LIMITED

Telstra Corporation Limited is Australia's leading telecommunications
and information services company. It offers a full range of voice and
data services on its fixed and mobile networks; competes in all
telecommunications markets and provides wholesale services to other
carriers and carriage service providers.

Telstra's fixed telephone network reaches virtually all Australian
homes and most Australian businesses and its two digital mobile
networks, GSM and CDMA, together cover over 97% of the population and
GSM international roaming to 90 countries.

Telstra is Australia's largest Internet service provider as well as
offering a variety of high-speed delivery platforms, such as ADSL,
ISDN, and a hybrid fibre co-axial cable broadband network, IP-VPN and
an international satellite infrastructure through affiliates.

In February 2001, Telstra completed a strategic alliance with Hong
Kong based Pacific Century CyberWorks (PCCW), to take key growth
business across Asia and globally. The alliance comprises:

* Reach Ltd a 50/50 joint venture with PCCW. Reach is a leading Asian
and global connectivity Provider

* Regional Wireless Company (RWC) (60 per cent owned by Telstra)
which owns and operates one of Hong Kong's leading mobile telephone
businesses, Hong Kong CSL Limited (Hong Kong CSL).

Telstra has one of the highest debt ratings of its peers both locally
and international. Telstra's long-term debts are rated AA- and Aa3 by
Standard & Poors and Moody's respectively.

Telstra is 50.1 per cent owned by the Commonwealth Government of
Australia. Its 49.9 per cent privately owned shares are listed on the
Australian, New Zealand and the New York Stock Exchanges.

ABOUT IRIDIUM SATELLITE LLC

Iridium Satellite LLC 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 operated by
The Boeing Company, 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 & gas and
heavy construction. According to an independent study, Iridium's
constellation is expected to last until at least mid-2010. For more
information, please visit www.iridium.com or call +1 703-465-1015.

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