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To: djane who wrote (4320)	4/30/1999 8:48:00 PM
From: djane	Respond to of 29987

Boeing Eyes Controlling Stake in Ellipso Project By Peter Robison at Bloomberg News 30 April 1999 Boeing Co. is in talks that could see the world's biggest aerospace company take an expanded role in Ellipso Inc., a satellite-based mobile telephone company in which it's already invested $225 million. Boeing is in "exploratory discussions" to "assess what our future role should be," said Boeing spokesman George Torres. He wouldn't discuss the talks further. A person familiar with the matter said Boeing could invest hundreds of millions of dollars for a majority stake in Ellipso. The online edition of the Financial Times said Boeing could pay $500 million for control of the closely held company. Ellipso spokesman Brian Willard declined comment on the talks. They come amid increasing investor skepticism about the claims underpinning a number of sweeping satellite projects. Iridium LLC, which launched a 66-satellite hand-held phone network last November, has had to return to its banks for more funding after attracting fewer-than-expected subscribers. Its shares have dropped almost 80% in the past year. Willard said Ellipso is confident about its own project, intended to be launched in 2002. Boeing agreed last year to lead construction of the company's network and take an equity stake of about 10%. Others involved in the project include Lockheed Martin Corp. and Israel Aircraft Industries. "Ellipso should be very profitable when we actually get up and running in 2002," Willard said. The company, based in Washington, D.C., maintains that its unique orbital architecture will differentiate it from the chief competitors building satellite-based phone networks - Iridium, Globalstar LP and ICO Global Communications Ltd. Ellipso's satellites will be carefully positioned over the most densely populated regions in an attempt to cut costs. Still, a large investment in the project could concern Boeing shareholders eager to see stronger returns after a loss in 1997 and depressed profit last year. Boeing has made a commitment to get out of unprofitable businesses under new Chief Financial Officer Deborah Hopkins, who is conducting a broad review of the Seattle-based company's investments. While Boeing views the space business as potentially its most profitable, heavy investments have limited the returns so far. Boeing's space and communications business, based in Seal Beach, California, had an operating profit of $248 million on sales of $6.9 billion last year, for an operating margin of 3.6 percent. Boeing eventually wants double-digit margins. Torres said Boeing views Ellipso as a good investment. "Clearly we believe Ellipso has some potential, which is why we invested in the first place," he said. "We have also publicly expressed our interest in the space and communications market in general, and are looking at other investments." Copyright 1999, Bloomberg L.P. All Rights Reserved.

To: djane who wrote (4320)	4/30/1999 8:50:00 PM
From: djane	Respond to of 29987

Nippon Iridium to Reduce Call Rates RDSL 30 April 1999 Nippon Iridium (Japan), gateway and sales affiliate of Iridium Communications, has announced plans to reduce call rates by an average 6% with effect from 15 May 1999. The company also plans to introduce clearer call zones, making it easier for users to calculate call rates. The cost of calling a fixed phone in Japan from an Iridium terminal in SE Asia will be reduced to USDlr4.67/min, vs USDlr5.20/min at present, although the cost of calling a fixed phone in Japan from an Iridium terminal in N America will rose to USDlr4.67/min from USDlr4.39/min. supplied by © EMAP Media 1999