GeoEye Completes Private Placement 80,000 Shares

22 September 2010, 8:59am

DULLES, Va., Sept. 22 - GeoEye, Inc. (Nasdaq: GEOY), a premier provider of superior satellite and aerial-based geospatial information and services, announced today that it completed the previously announced private placement of 80,000 shares of the Company's Series A Convertible Preferred Stock to Cerberus Satellite LLC, an affiliate of Cerberus Capital Management, L.P. (together with its affiliates, funds and managed accounts, "Cerberus"). Gross proceeds to the Company from the private placement were $78 million, which will be used for the development and launch of GeoEye-2, the Company's next-generation commercial Earth-imaging satellite.

As announced last March, Cerberus agreed with the Company to support its bid for the National Geospatial-Intelligence Agency's ("NGA") EnhancedView award. Cerberus' support included a commitment by Cerberus to purchase the Company's Series A Convertible Preferred Stock following a successful bid. This commitment was conditioned upon the final award to GeoEye of a satellite under the program. This private placement of preferred shares follows the award on Aug. 6, 2010 to GeoEye from the NGA of the $3.8 billion EnhancedView contract.

Under the terms of the contract award, the NGA will contribute up to $336.9 million to the Company toward the overall construction costs of the GeoEye-2 satellite. The Company anticipates that GeoEye-2 will be operational in 2013. The EnhancedView award includes $2.8 billion for commercial satellite imagery purchases by the NGA over the next 10 years under the terms of a Service Level Agreement from GeoEye's satellite constellation. The Company was also awarded $700 million for value-added products and services to include the design and procurement of additional infrastructure to support government operations. This also includes our EyeQâ„¢ Web Mapping Services to be delivered under the Service Level Agreement.

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