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Mobile Satellite Ventures and Boeing Amend Satellite System Procurement Contract

Posted on: Tuesday, 8 July 2008, 09:00 CDT

Mobile Satellite Ventures (MSV) today announced that it has reached an agreement with Boeing Satellite Systems (Boeing) to defer an additional $40 million of payments on the construction of the MSV-2 satellite.

The $40 million deferral is in addition to the original construction payment deferral of $76 million. Deferred payments are now due by December 20, 2010, or ten days before shipment of the second MSV satellite, whichever is earlier. The construction program is proceeding as planned and is consistent with previously announced launch windows of the fourth quarter 2009 for MSV-1 and the third quarter 2010 for MSV-2.

"MSV is privileged to be working with this world class satellite manufacturer on our next-generation satellite system," said Alexander H. Good, MSV's Chief Executive Officer, President and Vice Chairman of the Board. "MSV is pleased with the progress Boeing has made to-date on this program. This agreement comes at an important stage in the development of MSV's hybrid satellite-terrestrial network, providing us increased flexibility in our long-term financing plans."

For further details on this agreement, please refer to the 8-K filed by MSV on July 7, 2008.

MSV is Redefining Wireless Communications(TM) through its development of a hybrid satellite-terrestrial communications network, based on MSV's patented ancillary terrestrial component (ATC) technology. The company expects its next-generation network will provide seamless, transparent and ubiquitous wireless coverage of the United States and Canada to conventional handsets. MSV plans to launch two of the most powerful commercial satellites ever built that will enable this network to support communications in a variety of market sectors including public safety, homeland security, aviation, transportation and entertainment, by providing a platform for interoperable, user-friendly and feature-rich voice and high-speed data services.

Mobile Satellite Ventures is a joint venture between Mobile Satellite Ventures LP and Mobile Satellite Ventures (Canada) Inc. MSVLP is owned and controlled by SkyTerra Communications, Inc. (OTCBB:SKYT).

About Mobile Satellite Ventures (www.msvlp.com)

MSV delivers mobile wireless voice and data services primarily for public safety, security, fleet management and asset tracking in the U.S. and Canada. The company's next-generation hybrid satellite-terrestrial communications network is expected to provide seamless, transparent and ubiquitous wireless coverage of the United States and Canada to conventional handsets. When completed, the network will support communications in a variety of areas including public safety, homeland security, aviation, transportation and entertainment, by providing a platform for interoperable, user-friendly and feature-rich voice and high-speed data services. Mobile Satellite Ventures is a joint venture between Mobile Satellite Ventures LP and Mobile Satellite Ventures (Canada) Inc. MSVLP is owned and controlled by SkyTerra Communications, Inc. (OTCBB:SKYT).

Statement under the Private Securities Litigation Reform Act

This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to plans described in this news release. Such statements generally include words such as could, can, anticipate, believe, expect, seek, pursue, proposed, potential and similar words. Such forward-looking statements are subject to uncertainties relating to the ability of SkyTerra and MSV to raise additional capital or consummate a strategic transaction or deploy the next generation system, as well as the ability of SkyTerra and MSV to execute their business plan. We assume no obligation to update or supplement such forward-looking statements.

Source: Business Wire

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