WASHINGTON, DC., July 1, 1997 - Mobile Communications Holdings, Inc. (MCHI) welcomes today's decision by the Federal Communications Commission granting MCHI a license to construct and operate its Ellipso satellite-based mobile telecommunications system.

The Ellipso project, the fourth Big LEO system to obtain a U.S. license, will launch a constellation of 17 small satellites into innovative highly inclined and equatorial elliptical orbits to provide the lowest-cost and most cost-efficient communications network of any of its anticipated competitors.

"By granting a U.S. license for Ellipso, the FCC has ensured that people in developing and developed countries all over the world will have access to low-cost yet highly reliable mobile and fixed-site telecommunications services from a truly innovative wireless telephone system," said David Castiel, President and Chief Executive Officer of MCHI. "We are delighted with this news, which we believe will have a far-reaching impact on the emerging satellite-based mobile telecommunications market."

MCHI pioneered the Big LEO proceedings at the FCC in November 1990 with its unique low-earth elliptical orbiting satellites that would transmit and receive signals in the 1 Gigahertz frequency band.

With this authorization, MCHI can now proceed and compete in the marketplace. Despite the two-and-a-half year lead accorded its competitors by the regulatory process, MCHI's lower prices and better quality service will ensure success.

With a majority of the financing in place for its $910 million Ellipso system, MCHI is progressing toward an expected launch date in 2000 and initial service later that same year.

MCHI has assembled a formidable team of internationally recognized leaders in the fields of aerospace, telecommunications, information technology and risk management that will design, build, launch, test and operate Ellipso worldwide.

"We have an experienced team of highly motivated technical, business and program management professionals that have been working on a fast-track basis," Mr. Castiel said. "Now that our license is in place, this work will accelerate and we expect to be operational soon to meet market demand worldwide."

Employing the frequency-band sharing code division multiple access (CDMA) call transmission technology, the Ellipso system features a unique elliptical orbit design with high line-of-sight angles to the satellites, making it capable of focusing coverage where it is most needed and driving down user cost to unprecedented economical levels.

Most importantly, Ellipso is progressively deployable and can provide full-time service to over 50 percent of the Earth's surface with as few as six satellites in orbit.