CCI selects Raytheon E-Systems as prime contractor for LEO system ground segment.

RESTON, Va.--(BUSINESS WIRE)--May 21, 1997--Constellation Communications, Inc. (CCI) has selected Raytheon E-Systems as the prime contractor for the ground segment of CCI's Low Earth Orbit (LEO) satellite system. Under the terms of the agreement, Raytheon E-Systems will develop the system's gateway earth stations, subscriber terminals, and software. The contract is worth at least $300 million over the next three years.

"The selection of Raytheon E-Systems reaffirms our commitment to excellence in the development of our LEO system," said Frank DiBello, CCI's president and CEO. "E-Systems has long been recognized as a world leader in electronics, telecommunications and large systems integration. Its acquisition by Raytheon last year creates a virtual powerhouse in this arena."

Al Gaydos, vice president of finance for Raytheon E-Systems, affirmed that his company is fully committed to CCI's LEO system.

"We have made significant investments in this project because we are convinced it represents the low-cost, low-risk solution for the LEO marketplace," said Gaydos. "In addition, we have assembled a team of contractors that includes Northern Telecom, Texas Instruments, L-3 and Scientific Atlanta. This team is second to none."

CCI's system is unique from other LEOs. In its initial phase, a 12-satellite ring circling the equator will provide continuous service to more than 100 countries located within the world's tropical belt. The CCI system will then be expanded with additional rings of satellites to provide global service.

"The strategy behind CCI's system is to provide affordable telephone service to rural and remote areas throughout the world where people have no telephone service at all," said Bruce Kraselsky, CCI's chairman. "While terrestrial telephone systems are often too expensive to bring to these areas, the CCI system delivers a cost- effective solution to a fundamental infrastructure requirement."

CCI is a U.S. corporation created in 1991 to establish a LEO system to provide affordable voice, data, positioning and other communications services to mobile and fixed-site users throughout the world. CCI's shareholders include Bell Atlantic, SpaceVest and Raytheon E-Systems.

CONTACT: Alex Kozlov

KSK Communications

[phone]

[e-mail]