ICO North America Closes Sale of $650-M Notes

New York, August 19, 2005/Satnews Daily/ — ICO Global Communications (Holdings) Ltd. has announced its wholly-owned subsidiary, ICO North America, Inc., had issued and sold $650 million principal amount of 7½% convertible senior secured notes due 2009 in a private placement to institutional investors.

ICO Global said the notes will pay interest semi-annually in cash or, after two years if certain conditions are satisfied, in additional notes. Holders may convert their notes into shares of ICO North America Class A common stock at an initial conversion price of $4.25 per share, subject to adjustment under certain circumstances.

According to ICO Global, the notes also will automatically be converted into Class A common stock upon the occurrence of certain events. The notes will be secured, to the extent permitted by law, by a first priority security interest in substantially all of the assets of ICO North America and its subsidiaries and a first priority pledge of all of ICO North America’s capital stock, subject to certain exceptions. Jefferies & Company, Inc. and UBS Securities LLC acted as joint placement agents for the sale of the notes.

ICO North America said it intends to use the offering proceeds to fund a substantial portion of its costs to develop an advanced hybrid satellite terrestrial MSS/ATC system. Some will also be used to repay indebtedness to ICO Global, and to fund into escrow interest payments equal to the first four semi-annual interest payments on the notes.

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