Sextant In-Flight Systems to Supply Alitalia with Interactive Video-On-Demand Systems; Five 747-400s to be ``Line-Fit'' at Boeing, Options for Three Additional Airplanes.

Business Editors and High-Tech Writers

LONDON--(BUSINESS WIRE)--April 11, 2000

Sextant In-Flight Systems announced today at the Inflight Passenger Entertainment and Communications Conference & Exhibition that the company reached an agreement with Alitalia -- Linee Aeree Italiane, S.p.A. -- to install its 'm series' interactive Audio/Video-on-Demand (AVOD) systems on the airline's fleet of new Boeing 747-400 airplanes. Deliveries of the airplanes are scheduled to begin in March 2001. Initially, the terms of the agreement call for Sextant to line-fit five 747-400s with interactive, in-seat video systems in Alitalia's prestigious main cabin and upper deck Magnifica Class sections. During the installation process, Sextant will also completely provision each airplane's economy class for easy economical VOD in-seat video upgrades. In addition to the initial five firm airplane orders, the agreement also has provisions for an optional three airplanes to be outfitted with Sextant's m series systems.

According to Hank Evers, vice president of Sales and Marketing at Sextant In-Flight Systems, "Alitalia selected Sextant In-Flight Systems after a rigorous evaluation of all suppliers' interactive product offerings and customer support capabilities. Sextant IFS was selected as a result of m series' superior system reliability and performance."

According to Franco Batocchioni, Head of Avionic and System Purchasing for Alitalia, "Management selection criteria centered on finding a proven interactive system that was currently flying in scheduled revenue service and that featured a highly flexible system configuration designed for quick upgrades." He added, "Sextant offered what we were looking for. Of all the suppliers we reviewed, only Sextant had an interactive system flying with true audio- and video-on-demand. We wanted the best product available today and a system that is capable of growth in the future."

Alitalia's Touristica Class economy sections will be easily upgraded as a result of the m series unique network architecture. The m series system maintains the processing power at a centralized location on the airplane, which enables the airline to perform rapid and efficient upgrades -- whether extending the system throughout the airplane or adding new passenger entertainment or business services in response to market requirements.

Unlike other in-flight entertainment systems, the m series centralized architecture eliminates bulky, high-powered seat electronics boxes, which take up valuable leg and under-seat storage space, and generate considerable heat that must be dissipated by one or more cooling fans.

"We are very pleased that Alitalia has made the decision to select m series," said Hank Evers. "Alitalia is a great airline and with the m series employed, will be recognized as a leading provider of passenger entertainment within the European and world airline communities. In addition, because of Alitalia's emphasis on maximum seat system availability and customer satisfaction through enhanced audio and video quality, we view this as another important validation to our unique approach to AVOD and superior quality passenger entertainment systems."

Alitalia serves 130 destinations in 63 countries, carrying 25 million passengers per year and offers more non-stop flights to Italy from the U.S. than any other airline. Alitalia currently operates a fleet of 10 747-200s, eight MD11s, nine 767-300ERs, four A320s, 23 A321s and 89 MD80s. Alitalia has an additional 15 A320s, two A321s and five 747-400s on order.

Sextant In-Flight Systems is a wholly owned subsidiary of Thomson-CSF Sextant, the European leader and world-renowned partner in avionics and cabin electronics. Thomson-CSF is a global leader in professional electronics for civil and defense markets.

Sextant In-Flight Systems, based in Irvine, California, manufactures commercial and corporate aviation products including:

-- interactive multimedia passenger video systems

-- multi-channel, distributed passenger video systems

-- standard body aircraft overhead distributed video and audio

systems

-- camera systems for passenger entertainment, flight safety and

aircraft security

-- passenger control units with ambient noise canceling

capabilities

Sextant In-Flight Systems also provides complete turnkey maintenance service programs through its expanding global customer service network.

Sextant In-Flight Systems manages a joint venture with Harris Corporation, named LiveTV(TM), which manufactures a direct broadcast satellite television system currently being introduced into revenue service with three airlines.

For more information, or to arrange an interview, contact Hank Evers. Phone: [phone]. Fax: [phone]. E-mail: [e-mail].