The two new satellites, which will initiate Optus' D-series of satellites, will be based on Orbital's Star platform and will carry 24 transponders, with 8 back-up channels also available.

The first satellite, known as D-1, will generate approximately 4.0 kilowatts of electrical power and is scheduled for delivery in the fourth quarter of 2005. The second satellite, D-2, will generate approximately 4.7 kilowatts of power and is scheduled for delivery in the fourth quarter of 2006. Financial details of the contract were not released.

Commenting on the contract award, Dr. Ali Atia, head of Orbital's GEO communications satellite unit, said, "We are very appreciative of Optus' decision to deploy our Star satellites into their fleet. We are fully committed to working in partnership with Optus to see that the satellites are delivered on schedule for a smooth transition into their network."

Dr. Atia added, "This contract is further evidence of Orbital's increasing dominance in the niche market for small GEO satellites. With an advanced satellite design based on three-axis stabilization and significant power and mass margins over our nearest small platform competitor, we have clearly become the preferred supplier of satellites in this class."

The order from Optus continues Orbital's growth in the market for small GEO communications satellites. Since the late 1990's, Orbital has received orders for 14 small GEO satellites, seven of which have been delivered to customers in the U.S. and Asia. Including this most recent order, Orbital currently has five GEO satellites in various stages of design, manufacturing and testing, and has options for two additional satellites that could be exercised in the future.

Mr. Paul O'Sullivan, Chief Operating Officer of Optus, said, "The deal with Orbital is very significant as it confirms Optus' position as a leading satellite operator in the Asia Pacific region. It secures our leadership position in the direct-to-home subscription television broadcasting markets of Australia and New Zealand. We are looking forward to a successful relationship with Orbital."

Orbital's highly successful GEO communications satellites are based on the company's Star-1 and Star-2 standard spacecraft platforms, which are able to accommodate most types of commercial communications payloads. For many applications, the lighter-weight, more-affordable Star design is an attractive alternative to the larger, more costly GEO satellites offered by other suppliers.

Orbital's Star satellites are smaller and significantly less expensive to manufacture and launch. They are an ideal fit for established companies that require incremental capacity for their network or for customers in the early stages of building their business.

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