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09-15-09_ILS

VIEWS: 15 PAGES: 2

									International Launch Services (ILS) Launch Industry Update
and Progress to Date
During the Euroconsult media interviews and the Launch Services Providers panel, held on September 8,
2009 in Paris, ILS President Frank McKenna provided his perspective the issues facing the industry
beginning with a summary of the company’s year to date accomplishments and plans for the future.

New Business for ILS and Launch Manifest for 2009
To date, ILS has announced nine new orders and 3 mission
assignments with a current backlog of 25 firm missions valued at
over $2 billion dollars.

The announcement at the start of the conference for the
ILS/Proton launch of the W7 satellite for Eutelsat of France,
McKenna said, is an indicator of the value that ILS has been
providing to customers across the globe. The W7 satellite will be
launched in November of this year; representing a rapid mission
integration timeframe "that is simply unmatched" by the other
launch services providers. ILS was able to accommodate this near
term opportunity because of the robust production rate of its
partner and majority owner, Khrunichev Research and Space
Production Center (Khrunichev) of Moscow. A similar integration
was also executed for AsiaSat of Hong Kong with the successful
launch of the AsiaSat 5 satellite in August of this year.

Krunichev Consolidation
The consolidation of the Russian Space Industries has been of tremendous benefit to Khrunichev and
ILS, with most all of the manufacturers and suppliers for Proton now vertically integrated. McKenna said
this further strengthens the Proton supply chain and streamlines production overall.

Demonstrated Launch Rate
Proton has launched successfully 13 times in the last 13 months—with 8 commercial ILS missions and 5
Federal missions--demonstrating a robust production and flight rate of one per month.

McKenna said that Proton has had six successful missions so far this year with the launch of W2A
satellite in April, Protostar in June, Sirius FM-5 in July, AsiaSat 5 in August and two Federal missions. ILS
will be launching the Nimiq 5 satellite for Telesat of Canada on September 18. The combination of
commercial and federal missions creates a sustainable business model for the company with a year-end
wrap up of 12 Proton missions for 2009.


Proton Enhancements and Future Plans
With respect to Proton enhancements, the capabilities of Proton Phase III were successfully introduced
in February of this year with the Federal dual Express mission launch. McKenna said that Phase III will be
the standard configuration going forward in 2010.
When asked about the next generation Angara vehicle, McKenna said that it isscheduled for flight
testing in 2011. The first stage engine was successfully flight-demonstrated recently with the launch of
the KSLV-1 vehicle on August 26th from the Naro Space Center in South Korea.


Addressing Commercial Access to Space and Overcapacity
Relating to the concern that Operators want reliable, cost effective access to space, McKenna stressed
that most Operators have schedule assurances through diversification of their launch fleets. This was
demonstrated successfully when SES enlisted two major launch suppliers to provide schedule and
mission assurance to their global manifest providing through backup arrangements on individual
missions, and favorable terms by purchasing multiple launches at once. He said that the Multi Launch
Agreement is on track for five Firm launches in five years with two providers- ILS/Proton and
Ariane5/Soyuz.

In reference to the Chapter 11 filing in July of this year of Sea Launch of Long Beach, California, McKenna
emphasized that the Sea Launch and Land Launch backlog has largely been absorbed by others as
Operators needed to preserve their business plans and remain on schedule. With the announcement of
the W7 mission, six missions have moved from Sea Launch/Land Launch to ILS Proton within the past
year.

                                                     McKenna also noted that Proton and Ariane have
                                                     accommodated up to 22 commercial satellite
                                                     launches per year. With respect to worries that
                                                     there are not enough viable launchers to
                                                     accommodate the market, he said the forecasted
                                                     demand is consistent with recent history with 18-22
                                                     satellites orders per year and would start to decline
                                                     from this cycle in late 2011 and 2012. With two fully
                                                     functioning commercial launch providers, he noted
                                                     that other providers could bring added capacity
                                                     where it is needed.

Addressing the concern of operators of a launch failure, in an interview with ViaSatellite, McKenna
stated the recovery rate for Proton is approximately 90 days.


The 13th annual World Satellite Business Week, held September 7-10, 2009 in Paris, welcomed a record
number of attendees and some of the most influential business executives in the commercial space
industry. The launch services providers panel included the top executives representing businesses that
serve both the commercial and government market: International Launch Services (ILS), Arianespace, Sea
Launch, Lockheed Martin Commercial Launch Services, Boeing Launch Services, China Great Wall
Industry Corp and Mitsubishi Heavy Industries. Each panelist provided brief opening remarks and
responded topical questions regarding industry trends and developments, risks and opportunities and
speculation about the market and sustainability of the industry.

								
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