ICO Signs Insurance Deal For Satellite Launches.

WASHINGTON--(BUSINESS WIRE)--Oct. 26, 1998--ICO Global Communications (NASDAQ:ICOGF), the global mobile communications company, has insured the launch and subsequent in-orbit operations of its constellation of 12 satellites through insurance broker J & H Marsh & McLennan at an overall premium of US$77 million.

The insurance package, which covers five years of satellite operations, provides more than $200 million insurance cover for manufacture and launch of replacements for each satellite loss beyond the first two losses.

ICO is launching 12 satellites, built under a contract placed in 1995 with Hughes Space and Communications International, using a mix of four types of launch vehicles. Each vehicle carries one satellite per launch, with the over-all objective of achieving 10 or more operational satellites in ICO's unique medium-earth orbit.

"We are satisfied that we have negotiated an excellent deal for ICO," said Richard Aspden, ICO's vice president, Space Segment. "On the advice of J & H Marsh & McLennan, the market was approached earlier this year when underwriting premium levels were considerably lower than their recent historical base, and they have secured our cover at very competitive rates."

Brian Moore of J & H Marsh & McLennan cited the professionalism of the Hughes and ICO teams on their presentation of the novel ICO satellite and constellation design concepts as a factor in achieving the premiums. "This contributed significantly to our efforts to secure ICO's insurance at the premium we have achieved," he said.

ICO's satellite service will be launched in the year 2000, based on a new generation of pocket-sized mobile phones that will allow users to make and receive calls at any time, anywhere in the world. The handsets will be dual mode, capable of working on mobile satellite networks. Customers will be able to roam between ICO and mobile networks around the world.

If no cellular network is available, the handset will roam to ICO's satellite network to offer customers unrestricted mobility and accessibility for their communications needs.

Affordable services will be available to a wide range of users -- from people living and working in remote rural areas to the international business traveller. In addition ICO will offer services to the road and rail transport, maritime and aeronautical sectors.

Editor's Note:

ICO Global Communications was established in January 1995 to provide global mobile personal communications services by satellite, including digital voice, data, fax and messaging services. It raised more than $2 billion in equity contributions from 60 strategic investors, comprising telecommunications and technology companies from over 50 markets around the world.

It is also quoted on the Nasdaq exchange under the symbol ICOGF.

Its services are expected to be used by international and domestic cellular users who roam outside areas covered by compatible cellular networks from business, industry and government organizations, mining, transportation, aeronautical, maritime, media and other specialist sectors as well as residents of rural and remote areas lacking adequate local communications.