World's First Global Wireless Broadband Venture
ENGLEWOOD, Colo., Oct. 25 /PRNewswire/ -- Liberty Media Group
(NYSE: LMG.A and LMG.B) announced today that it has signed a Letter of Intent
to invest US$425 million in Astrolink. Astrolink is a wireless broadband
venture scheduled to become the first global, satellite-based broadband
service provider in 2003, with the start of service in the Americas, Europe
and the Middle East, immediately followed by Asia.
This deal comes only three months after Astrolink was formed by its three
founding partners: Lockheed Martin Global Telecommunications, a wholly owned
subsidiary of Lockheed Martin Corporation (NYSE: LMT); Telespazio, a company
of the Telecom Italia Group (NYSE: TI); and TRW (NYSE: TRW). The founding
partners invested a total of US$900 million; today's agreement brings
Astrolink's total equity to $1.325 billion -- substantially all of its equity
target.
The transaction is subject to completion of definitive agreements, which
the parties expect to execute within the next 30 days.
Giving effect to Liberty's investment, Astrolink's ownership will be as
follows: Liberty Media 31.6 percent; Lockheed Martin Global Telecommunications
31.2 percent; Telespazio 18.6 percent; and TRW 18.6 percent.
"We are delighted to welcome Liberty Media as a new Astrolink
shareholder," said Celso Azevedo, president and CEO of Astrolink. "The
investment by Liberty Media represents a tremendous vote of confidence in our
company's future and places Astrolink in a strong financial position."
"Liberty Media's lines of business bring tremendous strategic value to
Astrolink's business, and will clearly help to propel us to the forefront of
the global wireless services market," Azevedo added.
"Global demand for high speed information delivery is increasing at a
record pace," said Gary S. Howard, Executive Vice President and COO of
Liberty. "Astrolink provides a unique opportunity for Liberty to invest, with
a strategic set of partners, in a global distribution network utilizing
leading-edge technology to take advantage of this important trend that will
shape the world economy in the new millennium."
Based in Bethesda, Maryland, Astrolink will build and operate a global
telecom network based on next generation satellite technology. Astrolink will
focus on the high-growth area of broadband data services, carrying traffic for
Internet, intranet, multimedia, and corporate data networks. Customers will
be able to install small satellite dishes at businesses and homes, to connect
quickly and inexpensively to high-speed networks. The service will be
complementary and compatible with other broadband services like fiber optic
transmission and fixed wireless technologies.
Astrolink's first geostationary, Ka-band satellite is scheduled for launch
in 2002, followed by the launch of three additional satellites at six-month
intervals. The first two satellites will provide broadband data
communications services to customers in North and South America, Europe, and
the Middle East. The third and fourth spacecraft will extend the network
worldwide.
Liberty Media holds interests in a broad range of video programming,
communications, technology, and Internet businesses in the United States,
Europe, South America, and Asia.
SOURCE Liberty Media Group
-0- 10/25/1999
/CONTACT: Layli Sobhani of Astrolink, 301-581-4028, fax, 301-581-4002,
e-mail: layli.sobhani@astrolink.com; or Vivian Carr of Liberty Media Group,
720-875-5406/
/Web site: astrolink.com
(LMG.A LMG.B LMT TI TRW)
CO: Liberty Media Group; Astrolink LLC; Lockheed Martin Global
Telecommunications; Telespazio; TRW; Lockheed Martin Corporation; Telecom
Italia Group
ST: Colorado, Maryland
IN: TLS MLM ARO
SU: JVN
WR-KS
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