GENEVA, November 7, 1997-Mobile Communications Holdings, Inc., which is building the EllipsoTM satellite-based mobile communications system, announced today that it will offer free minutes of satellite communications time on the Ellipso network for humanitarian and disaster relief worldwide.

David Castiel, President and Chief Executive Officer of MCHI said that Ellipso would provide free minutes of calling time for the disaster relief work of the International Committee of the Red Cross and the United Nations High Commissioner for Refugees, as well as for national disaster relief in countries around the world.

"Through the UNHCR and the ICRC, Geneva-based institutions perform heroically to relieve human misery throughout the world, " Mr. Castiel said. "The private sector has a responsibility to assist in their work, and Ellipso will do its part."

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.

Ellipso will contribute to universal telephony, especially in developing countries, and has specific applicability to business travelers and to rural telephony. Because of its mobility and reliability, Ellipso service will be of particular value in disaster-relief situations.

Details of how Ellipso can meet disaster-relief requirements will be worked out with the organizations and the national authorities involved.

MCHI also has applied to the Federal Communications Commission (FCC) for a license to launch a second global satellite system that will enable it to meet the very large demand it sees for its affordable and reliability worldwide satellite-based communications services.

Much of this demand is coming from equatorial regions, where MCHI is working with regional partners to bring the low-cost voice, fax and data services-as low as 12 cents per minute for satellite time-to rural populations throughout the world, including Indonesia, sub-Saharan Africa, China and India.