Hughes Network Systems, LLC (HUGHES) has an $18 million, multi- year agreement to supply Avanti Communications Group, plc with advanced Ka- band networking infrastructure for Avanti's HYLAS 2 satellite, building on the initial $24 million contract to supply Ka-band technology for HYLAS 1 signed last October. Both deals include acquisition of satellite capacity by Hughes, which will be used to expand its Ka-band broadband services across Europe, the Middle East, and Africa.

Under the agreement, Hughes will supply Avanti with 48 advanced Ka-band system gateways for HYLAS 2, scheduled for launch in 2012, thereby raising the total to 56 gateways for both satellites, and complementing the prior order for 50,000 customer premise terminals. This powerful Ka-band architecture will enable the efficient delivery of bandwidth-demanding services, such as digital signage and distance learning for enterprises, and large- scale, high-speed Internet services for consumers and small businesses. In addition, it will open new potential for government and defense applications throughout the region, from high-speed Internet access for troops in the field, to sophisticated broadband on-the-move solutions. Taken together, HYLAS 1 and 2 have the capacity to serve a population of approximately 1 million broadband sites.