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Vizada Awarded Multi-Year Service Contract Valued Over $13.5 Million — Press Release

23 August 2012 – Washington, D.C. – Vizada Inc., a subsidiary of Astrium and a leading provider of satellite-based communications services, has been awarded by a U.S. government agency, a multi-year contract valued over $13.5 million to provide satellite services. Under the terms of the contract, Vizada will provide Inmarsat BGAN and SwiftBroadband services, including static IP addressing, voice, video, data, and messaging, in support of a full spectrum of operations
worldwide.

“Vizada delivers reliable, customized, end-to-end solutions to meet the unique needs of warfighters, first responders and other government workers,” said Bob Baker, CEO of Vizada, Inc. “The U.S. government has once again affirmed its confidence in our extended service portfolio and its reliance on us to provide the managed communications services they need.”

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Vizada, Inc.
Vizada Inc. is a leading provider of global satellite-based communication services. The company, which has recently been acquired by Astrium (EADS Group), offers a full portfolio of fixed and mobile connectivity services from multiple satellite network operators and delivers them to end users through a network of 200 service provider partners. These services are packaged with Vizada Solutions™, designed to add business value to basic connectivity, and delivered through Vizada’s global teleport network – five state-of-the-art satellite facilities strategically positioned around the world. Vizada works with the industry best network providers, including: Inmarsat, Iridium, Thuraya, Eutelsat, Intelsat, Loral, and SES WorldSkies and is the exclusive reseller of Astrium’s Paradigm solutions in the North American market. Vizada’s end-users benefit from satellite communications wherever they are in the world, including: government agencies and military commands, public safety and emergency response organizations, military and civil aviation operators and individual warfighters.

www.vizada.com

Astrium
Astrium is a world leading company for space technologies. It is a wholly owned subsidiary of EADS, dedicated to providing civil and defense space systems and services. Astrium Services, Telecom Governmental division, is the world’s first and only commercial operator of hardened and protected military satellite communications using X-band and UHF frequencies compliant to NATO STANAG interoperability standards. Through its wholly
owned subsidiary Paradigm Secure Communications Ltd it owns and operates the fleet of Skynet X-band and UHF satellites and provides satellite communications to multiple militaries and government organizations worldwide. Astrium’s three main areas of activity are Astrium Space Transportation for launchers and orbital infrastructure, Astrium Satellites for spacecraft and ground segment, and Astrium Services for comprehensive end-to-end solutions covering secure and commercial satcoms and networks, high security satellite communications equipment, bespoke geo-information and navigation services worldwide. EADS is a global leader in aerospace, defense and related services. In 2010, the Group comprising Airbus, Astrium, Cassidian and Eurocopter generated revenues of €45.8 billion and employed a workforce of nearly 122,000.

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Boeing Contracts for Up To 2 More WGS Communications Satellites

The U.S. Air Force and Boeing (BA) signed a contract for the seventh Wideband Global SATCOM (WGS) satellite last week. The contract has a value of over $1 billion and includes the advanced procurement materials for the eighth satellite as well.

The WGS, also called the “Wideband Gapfiller Satellite”, is a new communication system used by the U.S. military as well as the Australian Ministry of Defence. The first of the systems was launched in 2007 and so far two others have been launched. With this contract Boeing will have up to five in production of the new communication system.

The U.S. military is increasingly dependent on satellite communications for its war fighting needs. Not only has it been investing in its own systems to support this need but has also been buying large amounts of commercial capability. The fighting in Iraq and Afghanistan has required large amounts of this support.

Recently the U.S. government began issuing omnibus contracts for commercial time for communications. This is a joint contract between the Department of Defense and the General Services Administration (GSA). It will allow any agency or part of the government to buy commercial satellite time from a variety of providers and the contract could have a value of over $5 billion.

This type of support is considered a growth area for defense contractors and is part of the reason that EADS (EADS:P) acquired the second largest commercial satellite provider recently.

At the same time the U.S. military will continue its investment in internal capability with systems such as WGS.

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IBM Expands Security Offerings Through Acquisition

IBM (IMB) expanded its capabilities in the area of security analytical support through the acquisition of British company i2 yesterday. i2 provides software that does data analysis in support of law enforcement and military operations. The value of the transaction was not announced.

IBM has invested several billion since 2006 on companies that provide this and other types of security related services in order to bolster its capabilities in this market. The move also illustrates the further commitment of government and defense contractors to what is to be an expected growth area in the future as the U.S. military and others invest in more sophisticated computer security and intelligence support functions.

While IBM did not say how much they paid for i2 in 2008 it was last sold for $185 million indicating that this deal would be substantially more as the company has had some growth since then.

It is expected that Merger & Acquisition (M&A) activity will be accelerating and the deals will be getting larger. Recently there have been two deals in the billion dollar range by larger aerospace and defense companies. First, General Dynamics (GD) acquired Vangent a health IT company for $980 million and EADS’ (EADS:P) satellite division, Astrium, agreed to acquire satellite communications company Vizada for $960 million.

These two deals expand the company’s capabilities in less traditional markets for them but ones that it is felt the U.S. especially will be spending billions on in the near future. This is move away from their past efforts in developing, producing and supporting large platforms such as aircraft, vehicles and military communication systems.

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EADS Announces Contract Win At Paris Airshow

EADS subsidiary EADS Astrium announced at the Paris Air Show that they had won a contract from Kazakhstan. No amount was provided for the award. EADS Astrium was able to win out against Thales SA which is another major French defense conglomerate.

The company will build a satellite integration center in the capital of the Former Soviet Republic. Kazakhstan has a great deal of oil wealth to support these kinds of expenditures. EADS Astrium said eventually the country will build its own satellite program with their help. So more to come on this in the future as that is a fairly ambitious program.

EADS is looking at using the Air Show as a background to announce good news in a year where it has struggled due to the economic crisis across the world.

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