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Technology Stocks : CDRD (CD Radio)

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To: Jeff Vayda who wrote (762)1/13/1999 10:05:00 AM
From: Jeff Vayda   of 904
 
OT: News on an eventual competitor, Worldspace via Ameristar

The storybook start for Washington-based WorldSpace Corp.'s attempt to provide digital audio radio services (DARs) to the Third
World received a jolt of reality with the discovery of a technical problem on one of the AfriStar satellite's two payload interface
units (PIUs). The problem poses no immediate threat to the satellite, but may trim a few years off the bird's planned life of 13
years-15 years, said Judith Pryor, director of WorldSpace's North American media relations. The Alcatel [ALA]-built satellite
faces the risk that the PIU flaw will prevent a transition to a backup traveling wave tube amplifier if a primary amplifier fails. But
any reduction in the satellite's planned life span would be covered by insurance, Pryor said.

Despite the problem, the AfriStar bird is expected to begin providing more than 80 channels of commercial radio broadcasts and
multimedia services to Africa and the Middle East on schedule this spring. AfriStar, the first satellite dedicated to serve Africa,
was successfully launched Oct. 28 aboard an Arianespace rocket.

The satellite, positioned at 21 degrees E, is one of four ordered by WorldSpace from Alcatel. A second, AsiaStar, is slated to be
launched by Arianespace this summer, while a third bird, AmeriStar, is to be placed aloft by the same launcher by year's end to
spread WorldSpace's service to Asia, Latin America and the Caribbean. The fourth satellite is expected to serve as a ground
spare. (Judith Pryor, WorldSpace, 202/969-6261.)
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