ORBIMAGE Obtains First Tranche of Nextview Equity Funding

DULLES, Va., Nov. 19/Satnews Daily/ — Orbimage Inc. (Pink Sheets: ORBM) said it has entered into definitive agreements with a group of investors for the private sale of 3.25 million units of shares for a price of $10.00 per unit. The $32.5 million in proceeds from the sale, Orbimage said, represents the first tranche of equity financing for the NextView satellite project recently awarded to Orbimage by the National Geospatial-Intelligence Agency (NGA).

In addition, Orbimage said it has issued to the investor group 1.0 million warrants to purchase a share of common stock at $10.00 per share for a period of five years in consideration for the groups’ commitment to purchase up to an additional 3.25 million units.

Orbimage is currently planning to conduct a rights offering to its shareholders that would commence in late 2004 or early 2005 to purchase an additional 3.25 million units to the investor group for a price of $10.00 per unit.

Orbimage estimates total project cost to bring the OrbView-5 satellite into service in the first quarter of 2007 at around $502 million. To perform its obligations under the NextView contract, Orbimage will fund its cost share for the project through a combination of an equity offering of $65 million, an issuance of $155 million of senior subordinated indebtedness, and $45 million in cash flow from existing operations.

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