It is anticipated TRW will provide certain engineering expertise to ICO, and the companies will grant each other cross licenses for their respective patents relating to global telecommunications systems.

Additionally, TRW will receive certain distribution rights in the United States for ICO products and services, and the parties will dismiss their respective patent litigation. These agreements will permit a merging of the strengths of both ICO and TRW in implementing a medium-earth-orbit satellite system -- the most efficient orbit for high-performance global coverage.

Under these arrangements, TRW will invest approximately $50 million in ICO. In addition, ICO will pay TRW $25 million at closing and pay an additional $25 million by mid-1999.

ICO Global Communications, based in London, was established in January 1995 as a private company to provide satellite-enabled personal mobile global communications services. Once complete, its network will be capable of connecting a subscriber using a pocket telephone to any telephone at any location around the globe.

"TRW's investment demonstrates its confidence in ICO's becoming a success," said Olof Lundberg, ICO chief executive officer. "It strengthens our market position in the United States by giving us an additional strong partner and access to some key vertical markets. TRW also will back up our regulatory team and enhance our efforts to expand in markets where it enjoys considerable goodwill."

"With 1.5 million shares, TRW will become one of ICO's leading shareholders," said Joseph T. Gorman, TRW chairman and chief executive officer. "The linkage of TRW's Odyssey expertise with ICO is consistent with TRW's strategy to grow its telecommunications business, from cutting-edge gallium arsenide microchips to the largest global information systems. Our investment enables TRW to move more swiftly into the exciting, high-growth telecommunications market, merging both companies' strengths."

Gorman added that ICO, through its more than 55 international strategic investment partners -- which include Inmarsat, VSNL of India, Satellite Phone Japan, DeTeMobil of Germany, ICO Korea Co. Ltd., Beijing Marine Communications and Navigation Company, OTE of Greece, Singapore Telecom, and Etisalat -- provides direct access to telecommunications users on a global basis. The company has raised more than $2 billion in equity commitments, has been constructing its system for more than two years, and is expected to provide service starting in the year 2000.

The boards of directors of both TRW and ICO have approved the agreement, which is expected to be completed during the first quarter of 1998. It is anticipated that a TRW representative will join the ICO board of directors.

Odyssey was conceived by TRW as a medium-earth-orbit, 12- satellite global communications system. TRW plans to turn back the license it received from the U.S. Federal Communications Commission for its Odyssey program to make available spectrum needed by other space-based, global personal communications services. TRW will focus its efforts on assisting ICO to obtain authority for its system to operate in the United States and elsewhere, a process already under way.

ICO currently has more than 55 investors, comprising telecommunications and technology companies, from 46 markets throughout the world.

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