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-Commercial Satellite Industry Revenue Jumps 17 Percent in 2000--

APRIL 5, 2001, NEW YORK, New York -- The Satellite Industry Association (SIA) today announced that the commercial satellite industry generated $81.1 billion in revenue in 2000, a 17 percent increase over adjusted 1999 revenues. SIA announced the revenue jump today at SkyFORUM in New York City.

The statistics from the fourth annual Global Satellite Industry Indicators Survey were compiled by SIA and Futron Corporation by polling over 900 companies worldwide in every sector of the commercial satellite industry to determine aggregate revenue, employment, and output indicators. The study results include indicators for each major segment of the satellite industry including satellite manufacturing, launch services, satellite services, and ground equipment manufacturing.

According to the study, satellite services is the largest and fastest growing segment of the industry, generating a total of $39.5 billion in revenue, a 29 percent increase over 1999—with $8.4 billion in revenue from transponder leasing by satellite operators, and $31.1 billion from subscription satellite services. The manufacture of satellite-related ground equipment in 2000, from satellite control systems to DBS dishes, accounted for $17.7 billion of the industry’s total revenue—an increase of 11 percent over 1999 revenue. Satellite manufacturing, including payments to satellite prime contractors and their subcontractors, accounted for $15.8 billion of the $81.1 billion industry total. The worldwide launch services industry generated $8.2 billion in 2000, including $2.9 billion earned by subcontractors engaged in vehicle construction.

Clayton Mowry, executive director of the Satellite Industry Association said, "The satellite industry continued to grow in 2000. Impressive growth in subscription satellite services is the highlight of this year’s survey. That growth is also helping bolster revenues in the ground equipment segment of the market. 2000 was also a strong year for the satellite manufacturing and launch sectors, which successfully placed 44 satellites into geostationary orbit."

Elaine Gresham, technology policy analyst for Futron Corporation said, "This survey continues to provide a critical benchmark for accurate forecasting by financial analysts and corporate strategic planners."

The preliminary results were also released on a separate survey of 2000 government spending on spaceprograms conducted by Henry R. Hertzfeld, senior research scientist at the George Washington University Space Policy Institute. Hertzfeld reported that worldwide expenditures on civilian space programs totaled $20.8 billion last year excluding spending by Russian, Ukranian, and Chinese governments. Government spending on space reached $35.8 billion when adding in military space budgets. The United States accounted for more than three-fourths of all spending on civil space (78 percent), while combined spending by European countries and all other governments (Japan, China, Brazil and others) accounted for the remaining spending.

Futron Corporation is a technology management consulting firm headquartered in Bethesda, MD. Futron specializes in the space industry, including assessments and forecasting of trends in satellite services and the launch market.

Media Business Corp is a privately-held Colorado corporation which provides media-related consulting services to major and/or start-up media companies, engages in media business (such as publishing, research and other activities) itself, and develops innovative media products for itself and others independently or in partnerships.

The George Washington University Space Policy Institute was established is July 1987. The Institute conducts research on space policy issues, organizes seminars, symposia, and conferences on various topics, and offers graduate courses on space policy. It operates as a constituent element of the Center for International Science and Technology Policy of GW’s Elliott School of International Affairs. The Space Policy Institute focuses its activities on policy issues related to the other countries. The Space Policy Institute is directed by Dr. John M. Logsdon.

The Satellite Industry Association (SIA) represents the leading U.S. space and communications companies in the commercial satellite arena. SIA’s executive and affiliate member companies are engaged in satellite manufacturing, ground equipment manufacturing, satellite services, launch services and support services. SIA is the unified voice of the U.S. commercial satellite industry on policy and regulatory matters of common concern. The Association is dedicated to promoting the use of satellite technology in global communications. For more information, contact Tracy Jones at 703-549-8697.