ORBIMAGE
Completes Acquisition of Space Imaging;
Changes Brand Name To GeoEye
DULLES, Va., Jan. 12,
2006 –
ORBIMAGE Holdings Inc. (OTCBB: ORBM) 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 the world’s largest
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.
“The much-anticipated consolidation in our industry will result in a
stronger and more stable industry that will better serve the needs of its
customers,” said Matthew O’Connell, president and chief executive officer of
GeoEye. “As we enter this new era in commercial satellite imagery, GeoEye will
be a driving force in moving the industry forward. GeoEye will lead the
industry because of our advanced technology, innovation, integrity and service
to customers and resellers.”
With the combined resources of ORBIMAGE and Space Imaging, GeoEye brings
to the market a talented pool of skilled employees with broad subject-matter
expertise, national and international resellers, more than a dozen regional
affiliates around the globe, the world’s largest commercial archive of
map-accurate satellite imagery, and value-added geospatial imagery processing
capabilities that are unmatched in the satellite imagery industry.
“Governments can be assured, especially the U.S. Department of Defense
and the U.S. intelligence community, that the commercial satellite imaging
industry is here to stay,” said. Lt. Gen. (Ret.) James Abrahamson, GeoEye’s
chairman.
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. “As we integrate our various operations, we will keep a
laser-like focus on the customer. Our combined workforce is 100 percent
committed to maximizing company performance and efficiency throughout the
integration process,” said O’Connell.
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 an unprecedented ground resolution of 0.41-meters, and will be the
most 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, we expect 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.
Houlihan, Lokey, Howard & Zukin acted as financial advisor to GeoEye.
Headquartered in Dulles, Va., GeoEye is the world’s largest commercial
satellite imagery company, delivering the highest-quality, most accurate
imagery and products to better map, measure, monitor and manage the world.
GeoEye was formed as a result of ORBIMAGE’s acquisition of Space Imaging in
January 2006. The company is the premier provider of geospatial data,
information and value-added products for the national security community,
strategic partners, resellers and commercial customers. GeoEye operates a
constellation of three Earth imaging satellites – OrbView-2, OrbView-3 and
IKONOS – and possesses an international network of more than a dozen regional
ground stations, a robust image archive, and advanced geospatial imagery processing
capabilities that are unmatched in the satellite imagery industry. Its products
are the cornerstone of the remote-sensing industry enabling a wide array of
applications including intelligence gathering for national security and
defense, mapping, local government planning, and natural resources and
environmental monitoring. For more information, visit www.geoeye.com.
This release contains forward-looking statements within the meaning of
Section 27A of the Securities Act and Securities Exchange Act of 1934, as
amended. These forward-looking statements involve known and unknown risks and
uncertainties. ORBIMAGE’s actual financial and operational results could differ
materially from those anticipated. Additional information regarding these risk
factors and uncertainties is described more fully in the Company’s SEC filings.
A copy of all SEC filings may be obtained from the SEC’s EDGAR web site,
www.sec.gov, or by contacting: William L. Warren, Vice President, General
Counsel and Secretary, at 703-480-5672.