WASHINGTON, DC, October 27, 1999 -- The United States Patent and Trademark Office has issued a patent to Virtual Geosatellite Holdings, Inc. for its ground-breaking new "Virtual Geo" orbital architecture. The Virtual Geo system positions 15 satellites in globe-covering paths which emulate geostationary satellites but at a much lower altitude and without interfering with existing geostationary satellite services.

" The Virtual Geo system effectively opens an entirely new resource to the satellite communications industry," said Dr. David Castiel, President of Virtual Geosatellite Holdings and one of the inventors of the new system. "Not only does the Virtual Geo system efficiently reuse currently allocated spectrum, but in effect it also creates two new virtual orbital arcs in the northern and southern hemispheres in which multiple systems can operate.

"This invention will vastly increase capacity for services and provide new opportunities for satellite communications companies to meet the growing demand for high speed, high volume data and Internet access on a global basis. These new orbital arcs will relieve pressure on the increasingly congested geostationary arc and improve service quality over much of the Northern and Southern Hemispheres."

Virtual Geosatellite has applied to the FCC for a license in the Ku and C bands to provide worldwide Internet, data, videoconferencing and direct-to-the-user TV services. Unlike satellites in the traditional circular orbits proposed by other applicants, those in Virtual Geo's highly elliptical, inclined orbits with their inherent angular separation from the geo arc, will offer no interference to existing geostationary systems. Because of its high elevation angles, Virtual Geo also will be compatible with terrestrial fixed services. Virtual Geo thus assures that customers of existing wireless services will not experience any disruptions. Virtual Geo has pointed out to the FCC that, with proper spacing and coordination, multiple systems can use the same orbital arcs.

Virtual Geosatellite Holdings is a sister company to Ellipso, Inc., which will deploy its 17 satellites in elliptical inclined and equatorial orbits to provide low-cost voice and third-generation data services world-wide. When in service, Ellipso and Virtual Geo will provide consumers around the globe a full range of fixed and mobile telecommunications services.

For more information on Virtual Geo, visit the web site: www.virtualgeo.com