Intelsat expects to use this ground-based infrastructure to begin offering hybrid space/terrestrial services in a new service portfolio called "Global Connectivity Solutions." Hybrid services in this family are being designed to address increasing customer demand for one-stop shopping and end-to-end services. In addition, these acquisitions are intended to bring Intelsat closer to its customers in the U.S. market.

Specifically, Intelsat has signed an agreement to acquire the World Systems business unit of Lockheed Martin Corporation, including existing service contracts with World Systems' customers for Intelsat capacity as well as earth stations located in Clarksburg, Maryland and Paumalu, Hawaii.

Under the agreement, Intelsat would also purchase the teleport facilities and related assets of COMSAT Digital Teleport, Inc. Intelsat further announced that it had acquired a teleport facility in Fuchsstadt, Germany from Deutsche Telekom AG. Terms of these transactions were not disclosed.

In addition, Intelsat announced that it has established points of presence (POPs) connected by fiber at key traffic exchange points in Los Angeles, New York and London that will be connected to the teleport facilities to be acquired from Lockheed Martin and Deutsche Telekom.

"These developments clearly demonstrate Intelsat's commitment to provide our customers with the tools they need to better succeed in their own markets," said Conny Kullman, CEO of Intelsat, Ltd. "This move also shows how a privatized Intelsat has quickly begun to execute its business strategy to move from a satellite-centric to a network-centric company."

The assets to be acquired under the Lockheed Martin agreement will include:

• All of World Systems' existing service contracts for Intelsat capacity with its customers.
• The assets of COMSAT Digital Teleport, Inc., including a total of 19 antennas (of which 15 are located in Clarksburg, two are located in California, one is located in Maine and one is located in Italy).
• Tracking, telemetry, command and monitoring (TTC&M) earth stations located in Clarksburg, Maryland and in Paumalu, Hawaii. These are two of the six major earth stations that Intelsat uses to monitor and control its satellites and are currently operated by World Systems under contracts with Intelsat. The Clarksburg earth station has 11 TTC&M antennas and the Paumalu earth station has seven antennas.

John Stanton, President of Intelsat Global Sales & Marketing Ltd., noted, "The agreement with Lockheed Martin represents more than just an infrastructure play as it will allow us to get closer to our customers in the United States and provide them with value-added services."

Ramu Potarazu, President and COO of Intelsat Global Service Corporation, added, "These initial steps represent the first elements of a basic infrastructure we are putting in place for our Global Connectivity Solutions portfolio, while streamlining our current operations.

"We are planning to expand our terrestrial network throughout the world via additional teleports, associated fiber links and POPs. We are looking to work with our distributors to help us lease or acquire these elements, and expect to partner with these customers to expand our terrestrial network as new opportunities arise."

The closing of the Lockheed Martin transaction is subject to regulatory and other approvals and certain other conditions.

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