WASHINGTON, DC, December 21, 1998 -- Ellipso, Inc. today announced Vula Communications Holdings (Pty) Ltd. of South Africa, was awarded a U.S. Trade and Development Agency (USTDA) grant to further development of the South African ground segment and distribution infrastructure for the Ellipso™ global mobile satellite system. The grant will partially fund a study lead by Taylor-DeJongh, Inc., a Washington-D.C.-based international project development and finance firm, relating to development and operation of gateway and switching facilities in South Africa and establishment of a distribution network for the provision of fixed and mobile communications services via the Ellipso™ system. Subcontractors on the study include Kutluano Management and Advisory Services, a South-Africa-based management consulting firm specializing in telecommunications, and Lockheed Martin, which is currently developing the ground segment architecture for the Ellipso™ system.

"There is significant unmet demand for Ellipso's services in sub-Saharan Africa, and, with the USTDA grant, Vula will be another step closer to establishing the ground network to deliver service where and when it is needed." said Dr. David Castiel, President and Chief Executive Officer of Ellipso, Inc. "We value our long-standing business relationship with Vula and look forward to working together to provide communications services in Southern Africa."

The grant contract was officially signed December 2, 1998 in South Africa by U.S. Commerce Secretary William Daley for the USTDA and Thami Mtshali for Vula Communications.

Vula Communications, a wholly black owned company, is the first South African business to hold a substantial stake in the emerging global mobile telecommunications industry, placing it in a very unique position on the African continent. Vula is poised to become a premier telecommunications company on the continent.

Ellipso, Inc., a private company 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 The Boeing Company, the system integrator and space segment prime contractor; the Harris Corporation, manufacturer of the Ellipso™ spacecraft's communication payload; Lockheed Martin Global Telecommunications, developer and manufacturer of the Ellipso™ ground control stations; and L-3 Communications, provider of the digital communications technology.