WASHINGTON, DC, July 14, 1999 -- Ellipso, Inc. today announced that it has signed an agreement with the MIFA Group of Companies to develop and distribute Ellipso services in Morocco, North Africa, and surrounding regions.

"MIFA is a strong partner with great experience in the region. It has strong leadership in Dr. Alaoui and his team. We believe that Morocco and North Africa represent the kinds of markets which will welcome Ellipso's low-cost telephone and data services. There certainly will be great receptivity to our wholesale price of 8 cents per minute for fixed and 35 cents for mobile phone," said Dr. David Castiel, President and Chief Executive Officer of Ellipso, Inc.

MIFA's President, Dr. Abdallah Alaoui, added: " At MIFA, we strongly believe that this partnership is a unique opportunity for Morocco to develop the telecommunications sector in the country. It will not only bring for the first time affordable telephone services to rural areas, it will also have a deep, social and economical impact on the remote, rural regions of the country. Beyond our boundaries, this partnership will also have a regional impact by fostering greater economic cooperation between Morocco and its regional neighbors. The distribution agreement we have signed will undoubtedly promote our country as a regional Hub for satellite voice communications, a vision our Group is currently seeking in the Maghreb region with a data only project."

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.

MIFA Group, headquartered in Casablanca, Morocco, is active in the distribution industry with a nationwide presence in over 35 cities, the motorcycle industry with a factory near Casablanca, and the capital investment industry with investments in various sectors such as car rental, textile, renewable energies, and heavy equipment. More recently, MIFA Group pursued its diversification strategy, as a strategic priority, in the telecommunications industry. In particular, MIFA Group is the lead investor in ORBCOMM Maghreb, the regional operator (in Maghreb) of the ORBCOMM system, the world's first commercial Low Earth Orbit satellite system. MIFA group controls also IlaïCom, a new company created to set a nationwide distribution network to sell GSM products and services in Morocco.