Newsat Announces Major Progress Towards Jabiru-1 Satellite Launch By Signing $105 Million Contract With Trustcomm

 

10 August 2011

 

NewSat Limited announces the signing of a three year satellite capacity contract with TrustComm, Inc., a leading US based global communications provider, for the purchase of at least US$105 million and up to US$114 million of transmission capacity on the Jabiru-1 satellite. The commitment is for approximately US$28 million in the first year after launch and the balance over years two and three. The contract is another important step in the progression of NewSat's Jabiru Satellite Project and validates the high level of market demand for the company’s Ka-band service offerings.

The Jabiru-1 Ka-band satellite capacity purchased by TrustComm, Inc. will serve multiple high demand regions within the Middle East including Afghanistan, Iraq, Saudi Arabia, Yemen, Qatar and Pakistan.

 

In commenting on the multi-million dollar contract with TrustComm, Inc. Adrian Ballintine, NewSat Founder and CEO said: "This binding contract is another major step forward in our strategy to become a global leader of satellite services. It is tangible evidence of the step-change taking place in the NewSat business model as we move from being a reseller of satellite capacity to the owner of satellites. The Jabiru-1 satellite is the first of our fleet of geostationary satellites, and will be Australia’s first independently owned commercial satellite.”

 

"TrustComm's commitment to take capacity on Jabiru-1 is a significant milestone for NewSat and will underpin the debt financing of the satellite. TrustComm is a sophisticated provider of secure communications to government and commercial agencies, who have recognised that there is a unique opportunity today to secure capacity over the most sought after regions in the world.”

 

In commenting on the multi-million dollar contract with NewSat, Robert Kubbernus, President and CEO of TrustComm, Inc. said, “Our relationship with NewSat and the agreement to purchase up to US$114 million of Ka-band capacity will help TrustComm expand and strengthen its global capabilities. NewSat is constructing one of the most sophisticated and flexible communications satellites in an area with a scarcity of supply. TrustComm is pleased to be a founding customer of NewSat’s Jabiru-1 satellite and believes that TrustComm's customers will value highly the flexibility of the Jabiru-1 payload.”