Further contracts will follow from ICO's service partners around the world. Delivery is targeted for August 2000, the planned start date for ICO's full commercial service, and ICO's handset supplies are forecast in excess of 2 million units in 2001.

ICO Chief Executive Officer Olof Lundberg, in Tokyo for the announcement, welcomed the contracts. "This commitment brings the ICO service another step closer to reality. We are all delighted with the quality and design of these high-performance pocket-size handsets."

Hiromi Hayashi, associate senior vice president of NEC Corp., said: "As a main contractor for the ICO project, NEC has been working on supply and implementation of the ground infrastructure systems - that is, the SANs (Satellite Access Nodes). With this contract for the ICO hand held user terminals, NEC will further contribute to ICO and become a complete network supplier to realize this ambitious cutting-edge global mobile communications service by satellite."

Ritaro Kasai, board member and general manager of the Electronic Products and System Group of Mitsubishi Electric Corp., said: "We are very pleased to be a part of this exciting new opportunity. We are confident that the mobility provided by our smaller sized terminals will appeal to many people untargeted in the past by existing products available in the market."

The ICO units resemble typical GSM terminals with the addition of a satellite-capable antenna. They will communicate with ICO satellites at an orbit of 10,390 kilometers, with power output averaging just 0.25 watts. Typical volume of the handset models will be 220 cubic centimeters (13.4 cubic inches ). Typical weight will be 220 grams (7.76 ounces).

The ICO mobile phones will allow users to make and receive calls at any time, anywhere in the world. The handsets will be dual mode, capable of working on satellite, cellular and PCS networks. Using their handsets, customers will be able to roam between ICO and mobile networks around the world.

If no cellular network is available, the handset will "roam" to ICO's satellite network to offer customers unrestricted mobility and accessibility for their communications needs.

Affordable services will be available to a wide range of users - from those living and working in remote rural areas to the international business traveler. In addition ICO will offer services to the road transport, maritime and aeronautical sectors.

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