Jabiru Satellite Program On Track For a 2012 Launch

Newsat's directors conclude that a formal positive announcement is achievable with NewSat owning up to 100% of the equity in the new satellite.

NewSat would like to update the market about the strong progress in its program to launch a geo-stationary satellite within the next 30 months.

Following the earlier appointments of ArgoSat (as strategic advisors) and Lazard (as financial advisors) many opportunities have arisen leading Directors to conclude that a formal positive announcement is achievable.

Very significantly, by leveraging its valuable teleport assets and a range of other financial instruments, NewSat Ltd may own up to 100% of the equity in the new satellite.  Revenues from the satellite are predicted to exceed US$1 billion over the 15 year life of the asset and profits are expected to exceed US$500 million.

NewSat will take advantage of the current state of the capital markets and specifically inexpensive bank debt made available by governments whose objective is to support local suppliers via export credit.  The contracts for the launch, build, insurance and miscellany will be let within a timeframe that is supportive of a late 2012 launch.

Under terms of agreements currently being negotiated, Newsat will lease large amounts of enterprise-level capacity to a small number of high-value customers, all with international pedigrees and able to support substantial long term revenue commitments.  This low-risk, market driven approach means that by the time the satellite construction contract is signed, Newsat expects to have firm, long-term lease contracts for more than half the capacity of the satellite.  Furthermore, Newsat expects most of the remaining capacity to be under contract well prior to launch.

Adrian Ballintine
Chief Executive Officer

For further information:

Adrian Ballintine
Chief Executive Officer
NewSat Limited
Tel: 03 9674 4644

Stephen Kerr
PRX
Tel: 0411 055 322