AirCell Advances Toward Inflight Cell Phone Service; Patent Allowed on Key Technology to Support Airborne Use of Personal Cell Phones.

Business Editors/High-Tech Writers

LOUISVILLE, Colo.--(BUSINESS WIRE)--July 8, 2003

AirCell, Inc. has received notification from the United States Patent Office that it has allowed a patent on an aircraft telecommunications technology which will permit passengers to use their personal cell phones while an aircraft is in flight.

The AirCell technology is a key step toward offering such a service to the world's airlines.

The AirCell approach is dramatically less complex, lower cost, and more flexible than any previously identified solution. Ken Jochim, vice president of engineering and operations at AirCell, provided further details: "AirCell's novel approach dramatically reduces the size, weight, and cost of equipment required to provide cellular service onboard an aircraft, as compared to earlier approaches referred to as 'picocells' which involve putting the equivalent of a full terrestrial cellular base station onboard the aircraft. The patented concepts allow all the functionality provided to the cellular user in flight to be controlled by the network rather than the airborne station, simplifying the addition of features and migration to future cellular technologies, and it also provides a novel way to manage the radio frequency environment in the aircraft to prevent interference."

This marks an important milestone for the company, however, rigorous testing will be required to satisfy the concerns relating to non-interference with terrestrial cell phone systems and the aircraft's communication and navigation systems. AirCell has entered into discussions with the Federal Communications Commission (FCC) and the Federal Aviation Administration (FAA) to ensure all requirements are properly met.

Bill Peltola, AirCell's vice president of sales and marketing, said: "With this positive response to our patent application, AirCell is positioned to lead the effort to offer airborne cellular services, using personal cell phones on aircraft. Everything is in place for a successful rollout to the market: a cost-effective technology is now available, passengers are demanding more affordable voice and data communications, and the airlines are interested in offering new value-added services."

The company estimates that it will install and demonstrate the new system aboard an aircraft early in 2004 and have it certified aboard a commercial air transport aircraft by mid-2004. Discussions are in process with several key airlines to finalize plans for a trial program.

Jack Blumenstein, AirCell's chairman and CEO, commented: "Over the past several years, AirCell has been able to assemble an impressive collection of patents, intellectual property, and cellular know-how. Those achievements are clearing the way for us to bring about a new era in airborne telephony...convenience of using your own phone, full voice and data features, and best of all -- low cost. We think the flying public is ready for such an innovative service."

The new patent is the latest addition to the AirCell portfolio of patents, several of which are also international patents. The technology contained in these patents permits AirCell to reuse the cellular frequency band in an airborne application, the only company in the world to be granted that distinction by the FCC. In addition to the issued patents, the company has several U.S. and international patents pending application.

AirCell designs, manufactures, markets and supports a full product line of airborne cellular and satellite telecommunication systems and services for the Business Aviation, General Aviation, Government and Air Transport markets. More than 1,300 aircraft are equipped with the company's airborne systems. Headquartered in Louisville, Colorado, USA, the privately held company is the only Federal Communications Commission-authorized provider of airborne cellular telephones and telephony services including voice, fax, e-mail, data, and Internet connectivity, including NEXRAD weather radar imagery to the cockpit. The company's nationwide ground network of 23 cellular providers utilizes existing ground-based cellular telephone infrastructure to provide the largest geographic cellular network in the United States. AirCell has recently introduced a new product line of airborne telecommunication systems utilizing the Iridium Satellite LLC global network of low earth orbit (LEO) satellites and is an authorized Iridium Service Partner.