COMSAT and ARINC Announce New Aeronautical Service Agreements.

Business Editors/Hi-Tech Writers

LONDON--(BUSINESS WIRE)--May 18, 1000

-- More Voice & Data Satellite Communications Services Now Available for a Wider Range of Aircraft from Both COMSAT and ARINC --

COMSAT Mobile Communications (CMC) of Bethesda, Md. and ARINC Incorporated of Annapolis, Md. today announced two innovative business agreements that expand satellite communications service to passengers and crew among a wide range of commercial, cargo, government, corporate and private aircraft. The announcement was made during the Inmarsat Aeronautical Users Conference in London.

The first of the new agreements, for Aero-I and Aero-H+ service, will accommodate the growing demand for satellite communications service onboard aircraft. The weight, size and cost of onboard Aero-I equipment makes it suitable for installation on smaller, medium-range aircraft. Aero-H+ service uses equipment that is suitable for larger, long-range aircraft. Both services make more efficient use of satellite resources, and as a result, prices for the services are expected to be more economical.

As Aero-I and Aero-H+ services are implemented, more passengers will be able to phone the office or home and send fax messages while en route to their international destination. Safety of flight and cockpit operations will also be enhanced by the availability of Aero-I and Aero-H+ services.

"ARINC and COMSAT have worked together for more than 10 years, providing high quality and reliable voice and data communications to the aeronautical industry. These agreements combine two globally recognized leaders of aeronautical communications with complementary expertise," said Kathryn Y. Holman, vice president and general manager of COMSAT Mobile Communications.

"These agreements strengthen our close business relationship with COMSAT," said Dave Poltorak, ARINC vice president for Aviation Services. "We can now provide both current generation Aero-H and Aero-L and expand our service to offer Aero-I and Aero-H+ to ensure we continue to meet the needs of our airline customers."

Aero-I and Aero-H+ services initially will be available for aircraft flying over the Atlantic and Pacific Oceans.

In addition to the 10-year agreement to offer Aero-I and Aero-H+, ARINC signed a five-year agreement with CMC to resell existing COMSAT Aero-H and Aero-L services. The agreement allows ARINC to offer voice and packet data communications to their expanding list of commercial airline customers.

CMC's aeronautical services are provided via the Inmarsat satellite constellation, in geosynchronous orbit 22,300 miles above the equator.

ARINC Incorporated develops and operates communications and information processing systems for the aviation and transportation industries and provides systems engineering and integration solutions to government and industry. Founded in 1929 to provide reliable and efficient radio communications for the airlines, ARINC is headquartered in Annapolis, Md., with more than 2,800 employees worldwide.

COMSAT Mobile Communications, a business unit of COMSAT Corporation, provides maritime, aeronautical and land mobile satellite services to customers around the world. COMSAT Corporation (NYSE: CQ), headquartered in Bethesda, Md., is a global provider of satellite services and digital networking services and technology.