Iridium Extends Long-Term Relationship With Boeing for Satellite Network Operations and Support

Jul 21, 2010

Iridium Communications Inc. /quotes/comstock/15*!irdm/quotes/nls/irdmhas entered into two comprehensive, long-term agreements with The Boeing Company /quotes/comstock/13*!ba/quotes/nls/ba that redefine the relationship between the companies for maintenance, operations and support of Iridium's satellite network.

The first agreement, relating to the operation and maintenance of Iridium's current satellite constellation, transforms an agreement that Iridium and Boeing have had in place for the last ten years. Under the new agreement, Boeing will continue operating Iridium's current satellite constellation and will provide support for Iridium's satellite control system (SCS). Under the new terms, Iridium will receive significant cost savings and benefit from the release of more than $15 million in restricted cash required under the prior agreement.

The second agreement is a new support services contract under which Boeing will become the exclusive operations and maintenance provider for Iridium's next-generation constellation, Iridium NEXT. With the entry into this second agreement, Iridium will benefit from having a single operator during the transition from the current constellation to Iridium NEXT. In addition, under this agreement, Boeing will further upgrade Iridium's SCS to become fully compatible with Iridium NEXT. As part of the agreement, the two companies will create an efficient operations environment for Iridium NEXT.

"Continuing this longstanding and successful working relationship with Boeing is very important to Iridium," said Matt Desch, Iridium CEO. "Over the past ten years, the Boeing team has been a proven and trusted extension to the Iridium team. Many on our Boeing team can even trace their experience with the Iridium program back more than 15 years to the development of the current Iridium system. These new agreements will enable us to work more closely together going forward to ensure delivery of today's quality performance on the Iridium network, as well as a seamless transition to Iridium NEXT in coming years."

"We look at ourselves as being part of the Iridium family," said Steve Oswald, vice president and general manager, Boeing Intelligence and Security Systems. "These new agreements ensure that Boeing will be a key Iridium NEXT partner, and we are pleased that we will be able to continue working with Iridium in the development, operations and sustainment of this exciting program."