WASHINGTON, DC, September 2, 1999 -- "It's time to get down to basics when talking about satellite finance," Ellipso CEO and President David Castiel told a packed house in Paris on September 2. "It is too easy when dealing with satellite communications systems, especially the new low-orbit constellations, to get dazzled by the gee-whiz side of space technology. Even the Wall Street gurus seem to lose their bearings and forget that at the end of the day, the test of what system will succeed is pretty simple-will the call go through and are there enough customers out there who can afford the product."

Castiel added that selling communications is not that much different from selling hamburgers. "A $10 hamburger is not going to find many takers," Castiel said. "You won't frighten McDonald's. But if you can sell it for 50 cents, it's a different story.

" If you can wholesale satellite telephony at 8 cents a minute to fixed sites and 35 cents to mobile, you have a real business. Ellipso can and will.

" To adapt an observation from our 1992 Presidential elections: 'It's the price that counts.'"

Castiel acknowledged to the "World Summit on Financing for Satellite Communications and Broadcasting" in Paris, organized by Euroconsult, that Iridium's and ICO's bankruptcy had roiled the market for satellite financing. "But that doesn't mean the financing isn't there. It does mean that investors are going to get down to basics by looking for value and testing whether satellite system represents the adaptation of technology to serve a real market, or a sophisticated technology in search of a market."

" We at Ellipso know that the market is there. Much of the world is not connected. Most people in the world still cannot make a telephone call or can do so only with great difficulty. A good proportion of those can afford to call and want to do so. Despite the success of GSM cell phones, many travelers still run out of coverage even in their own countries, even in the US and Europe.

"All the copper wire in the world, and a proliferation of cell towers will not give global connectivity. Satellites can and Ellipso will."

Castiel went on to describe the philosophy which guided the development of Ellipso and its broadband Ku counterpart, Virtual Geo with its Virgo system. "We were convinced there is a market and we used the laws of physics to make sure that our satellites were used as efficiently as possible. What that means is that you use the fewest number of satellites possible and that those deployed spend as much time over populated areas as possible, during daytime, when people make phone calls. Ellipso achieves great efficiency and capacity over populated areas with 17 satellites. Virgo does the same in Ku broadband with only 15. The bottom line is that Ellipso and Virgo can each tap a global market with services ranging from plain old telephony, to 3G services, to high speed internet access at prices people everywhere can afford."

Looking ahead, Castiel said that " This is still an industry in search of a mission. For its part, Ellipso knows its mission-to put technology at the service of people by bringing telecommunications and the Information Revolution to people everywhere-in developed and developing countries-at prices people can afford"

Ellipso is a 17 satellite voice and data communications system, licensed by the FCC. It is being developed and deployed by Ellipso, Inc. of Washington, DC. Ellipso, Inc has teamed with companies such as Arianespace, The Boeing Company, Lockheed Martin, The Harris Corporation and Israel Aircraft Industries in developing and deploying the space and ground segments. Virgo is a Ku broadband 15 satellite system which will provide global high speed internet access and direct TV. Its license application is currently pending before the FCC.

Ellipso, Inc., headquartered in Washington, D.C., is currently designing and 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 voice, data, facsimile, paging and geolocational services to subscribers around the world at prices significantly lower than competing systems. The Ellipso project includes the participation of Lockheed Martin Global Telecommunications, Arianespace, the Harris Corporation, L-3 Communications, Israel Aircraft Industries and The Boeing Company.