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To: Geoff Goodfellow who wrote (12346)	5/9/2000 4:28:00 AM
From: Geoff Goodfellow	Read Replies (2) \| Respond to of 29986

Little LEO Satellites Taking Off According to Frost & Sullivan SAN ANTONIO--(BUSINESS WIRE)--May 8, 2000--The Little Low Earth Orbiting (LEO) satellite industry is seeing rapid market penetration and acceptance. Unit orders are high despite its recent introduction and the struggle of other newly-introduced satellite services in the marketplace. Success in the Little LEO market is proving that high growth in non-traditional satellite markets is both possible and sustainable. According to the new strategic research from Frost & Sullivan (http://www.frost.com), "World Little LEO Service and Application Markets," this industry, which did not exist prior to November 1998, is expected to see $299.8 million in revenues by 2005. The projected compound annual growth rate for this period is 165%. Acceptance of the Little LEO technology in new applications should ensure its growth over the long term. The LEO satellite services segment in general is poised for substantial growth. Demand in developing economies with inadequate telecommunications infrastructure presents tremendous opportunities for service providers, particularly for messaging and email applications. In addition, Little LEOs are expected to gain a broader acceptance in niche markets, such as fleet management, stolen cars monitoring, and point-of-sale transactions, which had been served by highly expensive geostationary (GEO) satellite-based technology. Little LEOs can offer substantial cost savings to the end users in these segments. By the end of 1999, the trailer tracking segment of the trucking industry, which traditionally use GEOs saw the highest number of in-service terminals deployed. "The Little LEO satellite industry has enjoyed quick market acceptance specifically in the U.S. trucking, container, and reefer industries, as the benefits of satellite-based services continue to improve operational efficiency and performance," says Frost & Sullivan analyst Jose del Rosario. "Other applications are also expected to gain wide acceptance due to the advantages of ubiquity and cost savings Little LEOs present." Market leader Orbcomm is to be credited for much of the industry's success thus far. However, "Orbcomm's slow pace in installing end user terminals could potentially decrease demand for Little LEO satellite-based services overall, as customers seek alternate solutions," according to del Rosario. In addition, the voice-centric Big LEO satellite systems are currently facing limited market penetration and fierce competition from terrestrial-based platforms. As a result, these satellite systems are expected to look to data applications to generate additional revenues. Little LEO applications could be tapped by other satellite systems, which may lead to market erosion and tremendous price competition. Frost & Sullivan presents 1999 Marketing Engineering Awards to companies that have worked hard to make a positive contribution to the satellite transmission industry. The 1999 Market Engineering Leadership Award is presented to Orbcomm. Frost & Sullivan, which is headquartered in Mountain View, Calif., is a global leader in international marketing consulting and training. Frost & Sullivan monitors the satellite transmission industry for market trends, market measurements and strategies. This ongoing research is used to complement the Satellite Custom Subscription. Free executive summaries of both reports are available to the press. Along with publishing in-depth market consulting reports, Frost & Sullivan also provides custom consulting needs to variety of national and international companies.