INC.L Regulatory News (INC)

15 May 2006 10:00

Avanti Screenmedia Group PLC15 May 2006 For Release 10.00am 15th May 2006 Avanti Screenmedia Group plc Signing of Procurement Contracts for Launch of First Satellite Avanti Screenmedia Group plc ("Avanti"), suppliers of satellite media andtelecommunications services, is pleased to announce the signing of contractswith the European Space Agency and EADS Astrium Limited for the financing andprocurement of its first satellite, named HYLAS. Avanti signed preliminary contracts in December, under which, work to design thesatellite commenced. Detailed contracts are now completed whereby Avanti's firstsatellite will be built by EADS Astrium, part of EADS, Europe's leadingsatellite system specialist, for launch in Q4 2008. The satellite is partlyfunded by a €34m contract from the European Space Agency in addition to the £25mwhich Avanti raised in a placing in November 2005. The British National SpaceAgency, a department of the DTI, was instrumental in helping Avanti to securethis ESA contract. HYLAS will provide an equivalent of 40 x 33Mhz transponders of capacity overEurope, which will be used for broadband telecommunications and High DefinitionTelevision. HYLAS has a design life of 15 years. It uses new flexible payloadtechnologies which deliver significant operational efficiencies and represent amajor advance for the satellite industry in delivering small, low cost, powerfulpayloads. Avanti expects to launch more satellites to address expected demand. Commenting, David Williams, Chief Executive of Avanti, said: "This is amarvellous example of what can be achieved when government, industry and theCity co-operate. HYLAS is a ground breaking project for the European spaceindustry, driving forward technology and services. It will enable Avanti toprovide broadband and HDTV services using new business models and technologiesin markets which are highly under-supplied; in the process correcting somesignificant market failure in relation to the digital divide and analoguetelevision switch-off. It should also provide a good return for our investors,the typical European market price for a transponder is currently in excess of €1million per annum." Lord Sainsbury, Parliamentary Under-Secretary of State for Science andInnovation, said: "The British Government has in the last eight years madesignificant investments in early stage research in Space technology, one of thehighest added value sectors we have. This research conducted by our Universitiesand companies has enabled companies like Avanti and Astrium to bring commercialacumen and the firepower of the City to create a world beating project. This isan excellent case study which shows what public private partnerships can achievein driving forward the capability and competitiveness of British industry,whilst at the same time solving problems for the benefit of society." For Giuseppe Viriglio, Director of European Union and Industry Programmes forthe European Space Agency, "HYLAS will play an important role in demonstratingthe advanced technological capabilities of European space companies which aretruly competitive on a global scale. It also makes significant progress insolving the social problem of poor broadband coverage in many parts of Europeand serves as a template for future large scale projects ". Antoine Bouvier, CEO of EADS Astrium, said: "The HYLAS contract further provesthat Astrium has world beating technology and the flexibility to adapt to meetcustomers' needs. Under the contract, Astrium is prime contractor in charge ofoverall programme management and will design and build the communicationspayload. ANTRIX, the commercial arm of ISRO, will supply the satellite bus, andintegrate and test the spacecraft. We are excited to work with Avanti and lookforward to a prosperous collaboration." Ends Enquiries: Avanti Screenmedia Group plc 020 7749 1600 David Williams, Chief Executive Peter Binns 020 7786 9600 / 07768 392 582 Annie Evangeli 020 7786 9600 / 07778 507 162 About Avanti Avanti operates two divisions: Media and Networks. In Media, Avanti installs andruns television channels for retailers at or close to the point of sale. Clientsuse these channels to entertain and inform customers, build brand, promoteproducts and generate new sources of advertising revenues. In Networks, Avanti offers broadband satellite Internet access and corporatenetwork services. In August 2005 Avanti was awarded by OFCOM the right to use the geo-stationaryorbital position at 33.5degreesW with 3.6Ghz of radio spectrum to operatesatellites. Avanti will use this to provide broadband and high definitiontelevision services in Europe. Avanti expects to purchase other satellites, andto create a new competitor in the provision of direct to home satellitetelevision in the UK and elsewhere. About ESA The European Space Agency is Europe's gateway to space. Its mission is to shapethe development of Europe's space capability and ensure that investment in spacecontinues to deliver benefits to the citizens of Europe. ESA has 17 Member States. By coordinating the financial and intellectualresources of its members, it can undertake programmes and activities far beyondthe scope of any single European country. ESA's job is to draw up the European space programme and carry it through. TheAgency's projects are designed to find out more about the Earth, its immediatespace environment, the solar system and the Universe, as well as to developsatellite-based technologies and services, and to promote European industries.ESA also works closely with space organisations outside Europe. About BNSC The British National Space Centre (BNSC), part of the Department for Trade andIndustry is at the heart of UK efforts to explore and exploit space. Formed from11 government departments and research councils, it: • co-ordinates UK civil space activity; • supports academic research; • nurtures the UK space industry; and • works to increase understanding of space science and its practical benefits. About EADS Astrium EADS Astrium is Europe's leading satellite system specialist. Its activitiescover complete civil and military telecommunications and Earth observationsystems, science and navigation programmes, and all spacecraft avionics andequipment. EADS Astrium is a subsidiary of EADS SPACE. In 2005 EADS SPACE had a turnover of€2.7 billion and 11,000 employees in France, Germany, the United Kingdom andSpain. EADS is a global leader in aerospace, defence and related services. In 2005,EADS generated revenues of €34.2 billion and employed a workforce of more than113,000. This information is provided by RNS The company news service from the London Stock Exchange