WASHINGTON, November 17, 1997 - Mobile Communications Holdings, Inc., which is building the EllipsoTM satellite-based mobile communications system, has been granted a second patent by the U.S. Patents and Trademark Office that protects its unique orbital design for non-communications use.

Patent regulators said Ellipso's elliptical orbital design, which maximizes coverage of high-population areas with just a few satellites, could have wide application in fields beyond telecommunication, including navigation, earth observation and weather forecasting. MCHI recently was granted patent number 5,669,585, which has a term of 17 years from the September 23, 1997, issue date.

"This new patent reaffirms the technological innovation that we have achieved with the Ellipso system," said David Castiel, President and Chief Executive Officer of MCHI. "Most importantly, an independent authority has established that the unique Ellipso orbital design has many applications beyond telecommunications."

Ellipso's orbital architecture is unique in that its sun-synchronous orbits allow the satellites to spend more time during daylight hours over high population areas. Unlike typical circular orbits, Ellipso's inclined and equatorial elliptical orbits put more communications capacity on the ground where and when it is needed most.

MCHI is currently building the 17-satellite Ellipso network, a licensed Big LEO satellite system, which will provide low-cost telephony using a constellation of satellites in innovative inclined and equatorial elliptical orbits. Initial Ellipso service, including digital voice, fax and positioning data services from handheld, vehicle-mounted and fixed-site telecommunications equipment, is expected to begin in the year 2000.