Constellation is developing a Low Earth Orbit (LEO) satellite system to provide affordable voice, data and other communications services to mobile and fixed-site users throughout the world.

"We are extremely pleased to have met this key milestone," said Dr. C.J. "Jerry" Waylan, President and CEO, "as we build Constellation to become a global telephony company."

Under the terms of this agreement, Orbital will begin construction of the satellites at its Germantown, Maryland facilities. The spacecraft for Constellation's system will be based on one of Orbital's state-of-the-art, three-axis stabilized satellite platforms. Each satellite will generate more than 2000 watts of power and will weigh about 500 kilograms (1100 pounds).

The satellites to be manufactured by Orbital represent the first of two phases of satellites authorized for Constellation in July 1997 by the U. S. Federal Communications Commission. The initial phase of satellites will form a single ring around the Equator at an altitude of approximately 2000 kilometers (1240 miles), with a coverage area of more than 75 countries in Latin America, Asia, Africa, and the Middle East. This area contains nearly one-quarter of the world's population, less than two percent of whom have access to telephone service. Scheduled to be constructed and operational by the end of 2001, the Constellation satellite network will provide voice and data services to subscribers via hand-held, vehicle-mounted or stationary telephones. Constellation will supplement this system with forty-two additional satellites, providing complete global service by 2003.

One of only four companies licensed by the FCC to establish and operate global LEO satellite telephone systems, Constellation will provide a wide range of services to individuals, businesses and government agencies in unserved and underserved areas worldwide. Constellation's shareholders include Bell Atlantic, SpaceVest, Raytheon, and Orbital.