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To: djane who wrote (5272)	6/21/1999 7:03:00 PM
From: djane	Read Replies (2) \| Respond to of 29987

Iridium to Cut Prices Up to 65% to Lure Customers By Josh Fineman at Bloomberg News 21 June 1999 Iridium LLC, operator of the first global satellite-telephone network, said it will cut prices for its service by as much as 65%, including a new flat rate for international calls, as it tries to lure customers. The cash-strapped company also said Motorola Inc. and Kyocera Corp., which make the phones for its service, also significantly cut prices on phones, pagers and other accessories. Motorola owns 18% of Iridium. Iridium doesn't have the money to pay off $800 million it owes banks, which have extended their credit until the end of June. The Washington-based company said its expensive phones and high per-minute charges hindered efforts to get subscribers. "If Iridium were able to attain liquidity, the magnitude of the price cuts should generate significant new interest," said William Kidd, an analyst at C.E. Unterberg, Towbin who has a "sell" rating on the stock. "Unfortunately, as long as a bankruptcy cloud hangs over the company consumers and companies alike will wait before purchasing the service." Iridium's telephones allow callers to place or take calls from practically any spot on the globe through 66 low-orbit satellites and conventional cellular telephone networks. Iridium had 10,294 subscribers at the end of March. "These significant reductions have a short-term impact on our bottom line," John Richardson, Iridium's interim chief executive, said in a statement. "However, we believe that the combination of attractive pricing and customer-driven service will ultimately help us to load the customers, and see the usage we need to make this business a financial success." Iridium shares rose 1 3/16 to 8 15/16 in early afternoon trading. The shares have fallen about 78% this year. Copyright 1999, Bloomberg L.P. All Rights Reserved.