HERE'S WHY!:
Monday October 25, 8:45 am Eastern Time
Company Press Release
SOURCE: Globecomm Systems Inc.
Globecomm Systems Awarded
Contract From Satellite Radio
Broadcaster, CD Radio, To Provide Terrestrial Repeater
Equipment
HAUPPAUGE, N.Y., Oct. 25 /PRNewswire/ -- Globecomm Systems Inc., (Nasdaq: GCOM -
news), a leading global supplier of ground segment systems and networks, has been awarded a
contract by CD Radio Inc. (Nasdaq: CDRD - news), the satellite-to-car radio broadcaster, to
provide equipment for the terrestrial repeater segment of CD Radio's digital satellite radio
transmission system. The contract is valued at approximately $20 million.
CD Radio is building a digital satellite radio system that will broadcast up to 100 channels of music
and entertainment programming to motorists throughout the continental United States. The company
plans to offer 50 channels of commercial-free music and up to 50 channels of news, sports and
entertainment programming for an anticipated monthly subscription fee of $9.95. Operations are
scheduled to commence at the end of the fourth quarter of 2000. The terrestrial repeater network will
be deployed in major urban areas throughout the continental U.S. It is designed to augment the signal
from CD Radio's three orbiting satellites where tall buildings may interfere with the satellite signal.
The contract will strengthen Globecomm Systems' presence as a leading provider of satellite
delivered digital audio distribution systems. In particular, Globecomm Systems will supply the
equipment that provides the modulation and power amplification for CD Radio's terrestrial signal as
well as support services.
``By helping CD Radio to build a nationwide digital radio broadcast system, Globecomm Systems
again demonstrates our strength within the U.S. marketplace,' said David Hershberg, Chairman and
CEO of Globecomm Systems. ``We are extremely pleased to partner with CD Radio in building the
system that will bring this revolutionary new service to U.S. consumers.'
``The terrestrial repeater network will help ensure seamless, coast-to-coast coverage of our satellite
radio service, and Globecomm's expertise and experience in satellite broadcasting technologies and
systems makes them an ideal partner for its deployment,' said Mark Gaudino, CD Radio's vice
president, terrestrial network.
Globecomm Systems designs, assembles and installs ground segment systems and networks and
enterprise service solutions which support a wide range of satellite communications applications,
including fixed, mobile and direct broadcast services as well as military applications. The Company's
customers include prime communications infrastructure contractors, government-owned PTTs, other
telecommunications carriers, producers and distributors of news and entertainment content and other
corporations. Through its subsidiary, NetSat Express, Inc., the Company provides satellite based
Internet access services, digital media distribution services and integrated data, voice and video
communications services.
Based in Hauppauge, New York, Globecomm Systems also maintains offices in Atlanta, Georgia,
Hong Kong and the United Kingdom.
CD Radio has an exclusive agreement with Ford Motor Company to install CD Radio receivers in
Ford vehicles. CD Radio has also announced numerous content agreements, including agreements
with National Public Radio, Bloomberg and the BBC, as well as manufacturing agreements with
Panasonic, Alpine, Delphi Delco Electronics Systems and Recoton.
For more information contact Globecomm Systems Inc., 45 Oser Avenue, Hauppauge, NY
11788-3816, USA. TEL: +1 516 231-9800, FAX: +1 516 231-1557; email:
info@globecommsystems.com; WEB: www.globecommsystems.com .
Certain of the statements contained in this press release are or may be deemed forward-looking
statements, including but not limited to statements concerning the expected operational date of the
system to be provided by the CD Radio contract and the impact of the contract, which has yet to be
performed, on the Company's future revenues and results of operations and on the strength of its
market presence. Such statements, and other matters addressed in this press release, involve a
number of risks and uncertainties. Among the factors that could cause actual results to differ
materially from these statements and matters are the ability of CD Radio and its other suppliers to
effectuate CD Radio's plan to build a nationwide digital radio broadcast system, the health of the
overall economy and the specific market for digital radio, the parties' ability to terminate or modify
the contract under certain circumstances, and the risks and other factors detailed in the Company's
reports with the Securities and Exchange Commission, including, but not limited to, the Company's
Annual Reports on form 10-K and its Quarterly Reports on Form 10-Q.
SOURCE: Globecomm Systems Inc. |
