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ORBIMAGE completes acquisition of Space Imaging

ORBIMAGE Holdings Inc. has finalized the acquisition of substantially all of Denver-based Space Imaging’s assets. The combined company will now do business under the brand name GeoEye. GeoEye is a commercial satellite imagery company with a pro forma combined revenue for 2005 of approximately $160 million. The purchase price was approximately $58.5 million less amounts, which were paid by Space Imaging on its existing debt as well as certain other adjustments. With the combined resources of ORBIMAGE and Space Imaging, GeoEye brings to the market a pool of skilled employees with broad subject-matter expertise, national and international resellers, more than a dozen regional affiliates around the globe, one of the world’s largest commercial archive of map-accurate satellite imagery, and value-added geospatial imagery processing capabilities. The company will immediately begin implementing the planned integration of the two companies including operations, IT, administration, sales and marketing, and customer service to ensure a smooth transition for customers, partners and investors.

GeoEye operates an industry-leading constellation of three remote-sensing satellites including OrbView-3, IKONOS, and OrbView-2. OrbView-3, the most recent commercial satellite on orbit, offers 1-meter panchromatic (black and white) and 4-meter multispectral (color) digital imagery, which can be down linked to customer ground stations around the world. IKONOS, the world’s first commercial high-resolution satellite, produces 1-meter panchromatic and 4-meter multispectral imagery that can be combined to create a 1-meter color image. OrbView-2 offers 1.1-kilometer resolution with a wide 2,800 kilometer swath taking multispectral imagery of the entire Earth every day. Having two high-resolution satellites available for customers’ orders provides multiple benefits including more frequent visits over an area, larger volume collections in a shorter period of time, and improved overall reliability of operations.

In addition to the above three satellites already in orbit, GeoEye plans to launch a satellite in early 2007 to service a contract with the National Geospatial-Intelligence Agency (NGA). It will have a ground resolution of 0.41-meters, and will be an advanced sub-half-meter commercial imaging satellite in the world. It will collect both panchromatic and multispectral imagery simultaneously and will be able to down link imagery to ground stations around the world. With the launch of this satellite, it is expected that customer ground stations around the world will continue to have down linking capability through 2015 or beyond. GeoEye completed the acquisition and financed this transaction through debt raised at the operating subsidiary level. This debt is structured to be serviced by the operating cash flows of the subsidiary.