Geneva, Switzerland, October 12, 1999--- Tapping into two major telecommunications "tidal waves", Ellipso announced today that it has added 3G wireless and IP capabilities to its unique and patented low-cost global mobile satellite system.

David Castiel, President and CEO of Ellipso, speaking at Telecom '99 in Geneva, said: "'3G' and IP are clearly global communications revolutions that will be firmly under way when Ellipso launches in 2002. Ellipso has always believed that MSS must meet consumer needs by mirroring terrestrial networks in price, services and quality. With 3G and IP functionality, Ellipso will be a near-seamless global extension of even the most advanced networks."

"In the communications business it is more important to be right than to be first", added Castiel. "Cellular phones, direct-to-home satellite television and handheld computing all had major failures in the first generation. It was the next-generation companies, adapting and learning from the pioneers, who made the money. MSS will be no different."

The largest wireless companies in the world are spending billions to migrate conventional cellular services toward advanced "3G" applications. This means cellular users can use their mobile terminals for voice, internet-access, receiving and sending e-mails, documents and photos. Ellipso will extend these services "anytime, anywhere" regardless of terrestrial coverage or network congestion.

Ellipso offers a unique range of advanced features and data capabilities over satellite. With terminal speeds up to 28.8kbps and higher, global "push-to-talk" voice, and the most accurate Global Positioning (GPS) capabilities among commercial systems, Ellipso has a full portfolio of forward-looking capabilities far beyond those contemplated by first generation MSS systems.

Complementing its "3G" feature set, Ellipso has selected an Internet Protocol ("IP") backbone network, reducing ground segment costs and allowing superior transmission of data and voice. "By upgrading our terrestrial backbone network to IP, Ellipso will offer simple, modular, and highly cost-effective connectivity to our Service Provider partners around the world, said Castiel. "This positions Ellipso to benefit from and adapt to numerous internet-related developments, including wireless web access and voice-over-IP."

Ellipso expects these upgrades to bring significant overall cost reductions.

Ellipso, Inc., headquartered in Washington, D.C., is constructing the Ellipso satellite-based global communications system that will provide low cost and high quality digital voice and data services worldwide. Utilizing unique and patented elliptical orbits, the Ellipso system will provide a full range of advanced communications services to subscribers around the world at prices significantly lower than competing systems. The Ellipso project includes the participation of Lockheed Martin Global Telecommunications, the Harris Corporation, L-3 Communications, Israel Aircraft Industries Arianespace and The Boeing Company.