Inmarsat plc Interim Management Statement

11 May 2010

Inmarsat plc provided the following information for the 3 months ended 31 March 2010.

Andrew Sukawaty, Inmarsat's Chairman and Chief Executive Officer, said, "We have started the year with strong revenue growth and seen very strong cash flow growth in our Inmarsat Global business. We continue to be confident in our market opportunities and believe we are on track to deliver our objectives for the year."

During the first quarter our maritime revenue was impacted by lower traffic volumes. However, additions of new Fleet and FleetBroadband terminals were particularly strong, with over 2,000 new terminals added in the quarter. Although we see continued weakness in our maritime voice revenue, we believe demand for data services remains solid and can deliver further growth during the rest of the year.

The land mobile sector revenue was driven by strong underlying demand for our BGAN service and additional BGAN demand in response to the earthquake events in Haiti and Chile. BGAN revenue for the quarter increased by 62% compared to the prior year.

Our aeronautical and leasing sectors have continued to perform strongly. Aeronautical revenue growth was driven by high levels of demand for our Swift 64 service and steady revenue growth from our SwiftBroadband service. New additions of SwiftBroadband terminals remained strong and well ahead of our Swift 64 service.

Our leasing business growth was driven by new leasing business across our business sectors. Growth in other income primarily reflects the revenue contribution from our Segovia business acquisition with effect from 12 January 2010.

Our Stratos Inmarsat MSS revenue growth was driven by strong growth in land mobile, aeronautical, and leasing, offset by a small decline in maritime revenues. Growth in other MSS revenue was primarily driven by increases in traffic carried over the Stratos network for other Inmarsat distributors. The factors contributing to lower broadband revenue were broadly unchanged and mainly reflect the impact of current economic conditions.

Liquidity and Foreign Exchange Hedging
At 31 March 2010, the Inmarsat plc group had net borrowings of $1,328.8m, made up of cash of $294.5m and total borrowings of $1,623.3m. Taking into consideration our cash on hand and available but undrawn borrowing facilities of $110.0m, the group had total available liquidity of $404.5m at the end of the quarter. On 19 April, we announced that we had completed an 8-year Euro 225.0m facility with the European Investment Bank to fund the build and launch of our Alphasat satellite.

We recently decided to complete hedging arrangements for our anticipated sterling costs in both 2011 and 2012. As a result, we now expect our hedged rate of exchange for 2011 to be US$1.52/£1.00 and for 2012 to be US$1.48/£1.00.

Our Financial Reports
Inmarsat Group Limited today reported unaudited consolidated financial results for the three months ended 31 March 2010. Inmarsat Group Limited is our wholly-owned subsidiary and is required by the terms of its outstanding debt securities to report quarterly results. A copy of the full financial report for Inmarsat Group Limited can be accessed via the investor relations section of our website.

As a result of our recently announced reorganisation plan, we expect that Stratos will no longer be required to report quarterly results and, as a result, no report for 3 months ended 31 March 2010 will be released. For the 3 months to 30 June 2010 and for all reporting periods beyond, the results of Stratos will be consolidated into the results of Inmarsat Group Limited and segmental analysis of the results of both Inmarsat and Stratos businesses will be provided. In future, the results of our Segovia business will be consolidated into the segmental results for Stratos within the Broadband business line.