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To: Dragonfly who wrote (2667)	4/20/1998 4:13:00 PM
From: Snake	Read Replies (1) \| Respond to of 10852

Here is the $5.3 billion quote from Iridium's 10K. It is the amount necessary until the project is cash-flow positive. Funding Requirements Iridium expects to commence commercial operations on September 23, 1998. Iridium currently estimates that aggregate cash funding requirements from the commencement of development (June 1991) through the anticipated commencement of commercial operations will be approximately $4.4 billion. At year end 1996 and 1997, Iridium had expended approximately $2.40 billion (or 55%) and approximately $3.42 billion (or 78%), respectively, of such $4.4 billion estimate. Iridium estimates aggregate cash funding requirements of approximately $5.3 billion (net of assumed revenues following commencement of commercial operations) through year-end 1999, the last year in which Iridium projects negative cash flow and a net increase in year-end borrowings. At year end 1996 and 1997, Iridium had expended, since inception, approximately $2.40 billion (or 45%) and approximately $3.42 billion (or 65%), respectively, of such $5.3 billion estimate. Here is G*'s cost per 10K: As of December 31, 1997, Globalstar estimates the cost for the design, construction and deployment of the Globalstar System, including working capital, cash interest on borrowings and operating expenses to be approximately $2.7 billion, as compared with approximately $2.5 billion estimated at December 31, 1996. Actual amounts may vary from this estimate and additional funds would be required in the event of unforeseen delays, cost overruns, launch failures, technological risks, adverse regulatory developments, or to meet unanticipated expenses and for system enhancements and measures to assure system performance and readiness for the space and ground segments.

To: Dragonfly who wrote (2667)	4/20/1998 4:55:00 PM
From: brian h	Read Replies (1) \| Respond to of 10852

Dragonfly, Besides what Bill H. on the previous post showing you. I found the following statements from IRIDF's 10 K, edgar-online.com I believe that MOT and partners will get all the money from this IRIDF project, if I read it correctly. Please add up all the cost it shows. That is more than $5.3 billion though assuming 5 year contract life. Add two more years (hopefully satellites last that long!) it will cost even more. Please read all the bold words. Plus, make sure there is no delay on 9/23/98 service launch. Or it will cost even more. Please show me how long it takes to recoup all the possible costs. I really like to learn. The 2nd generation? Does it cost just about the same amount? May be MOT and partners will pocket all the money again. May be we should buy MOT instead. Excerpts from IRIDF's 10 K. Readers. You will be the judge. Following: With respect to the development and construction of the IRIDIUM System, Iridium and Motorola are parties to (i) the Space System Contract for the design, development, production and delivery in orbit of the space segment, (ii) the Terrestrial Network Development Contract to design the gateway hardware and software, and (iii) the Operations and Maintenance Contract to provide day-to-day management of the space segment after deployment and to monitor, upgrade and replace hardware and software of the space segment as necessary to maintain performance specifications. Substantially all of the initial capital raised by Iridium is being used and will continue to be used to make payments to Motorola under the Space System Contract and, to a lesser extent, the Terrestrial Network Development Contract. The Space System Contract provides for a fixed price of $3.45 billion (subject to certain adjustments), scheduled to be paid by Iridium to Motorola over approximately a five-year period for completion of milestones under the contract. Payments under the Operations and Maintenance Contract will be payable quarterly and are expected to aggregate approximately $2.88 billion over such contract's initial five-year term (assuming commencement of commercial operations on September 23, 1998 and no excusable delays), in addition to the cost of certain spare satellites at the completion of the contract. The payments increase each year, ranging from quarterly payments of $129.4 million in 1998 to $157.4 million in 2003 to $171.4 million in 2005. If Iridium exercises its option to extend the Operations and Maintenance Contract for an additional two years, the payments due for that two-year extension are expected to aggregate approximately $1.33 billion (assuming commencement of commercial operations on September 23, 1998 and no excusable delays). The Terrestrial Network Development Contract provides for payments aggregating approximately $284 million. As a result of technological developments, changes in the product mix of Iridium World Services, and scheduling adjustments, including the implementation of Iridium World Cellular Services into Iridium's service offerings, there have been, and Iridium anticipates there will be, amendments and interpretations of the Space System Contract, the Terrestrial Network Development Contract and the Operations and Maintenance Contract and other agreements and letters with Motorola which may increase the total costs of these contracts. Brian H.