The handsets will be dual-mode satellite and GSM, and are expected to be delivered to ICO before the launch of its satellite service in the third quarter of 2000.

"We are delighted to make this commitment for handsets that will bring mobile satellite telephones to a consumer market," said Olof Lundberg, ICO's chief executive officer. "ICO's handset requirements are forecast to exceed two million units in 2001. Earlier this year, we announced handset contracts with Mitsubishi, NEC, Samsung and Nera, and we are confident that all our suppliers will help us meet our objectives."

Yasuo Katsura, director and board member of Matsushita Communication Industrial Co., Ltd., based in Yokohama, said: "I believe that the satellite mobile communications is one of the key technologies of the future, and it is important for us to contribute to this ICO project, which is at the cutting edge of mobile satellite systems, as the mobile phone handsets manufacturer. I am proud to announce that the contract has been concluded."

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 kilometres, with power output averaging just 0.25 watts. Handsets will be similar in size and feel to GSM phones.

ICO's satellite service will be launched in the year 2000, based on a new generation of pocket-sized mobile phones that 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 mobile satellite networks. 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 people living and working in remote rural areas to the international business traveler. In addition ICO will offer services to the road and rail transport, maritime and aeronautical sectors.

ICO

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