The award includes the following components:
- $2.8 billion for commercial satellite imagery purchases over the next ten years as follows:
- An extension of the NGA's current ability to purchase commercial imagery from the Company's existing satellite constellation under a Service Level Agreement (SLA) for $150 million per year.
- An additional award to purchase commercial imagery, when GeoEye-2 becomes operational in 2013, for approximately $184 million per year for seven years.
- $337 million cost share for the development and launch of GeoEye-2.
- $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 EyeQ™ Web Mapping Services to be delivered under the SLA.
The period of performance for the contract runs initially from Sept. 1, 2010, to Aug. 31, 2011, with nine, one-year options. As with all government contracts, funding is subject to annual congressional budget approval.
Matt O'Connell, GeoEye's chief executive officer and president, said, "We are very gratified by this award. With this award, we'll continue the accelerated development of our GeoEye-2 satellite so that it is operational in 2013. We will also upgrade our infrastructure and continue expanding our Web-delivery systems so that we can deliver the world's best commercial imagery to the NGA and our other customers anywhere, anytime."
"We have been proud to serve the NGA for more than two decades, and we look forward to continuing this strong legacy of service as commercial imagery becomes fully integrated into the national imagery architecture," said Bill Schuster, GeoEye's chief operating officer. "We're particularly proud that the NGA has chosen us to support their important EnhancedView program and to help ensure that the nation has access to the best commercial imagery in the world."
GeoEye, Inc. is a leading international information services company serving government and commercial markets. The Company is recognized as one of the geospatial industry's imagery experts, delivering exceptional quality imagery products, services and solutions to customers around the world. Headquartered in Dulles, Virginia, the Company has over 500 employees dedicated to developing best-in-class geospatial information products and services. GeoEye is a public company listed on the NASDAQ stock exchange under the symbol GEOY. The Company provides support to academic institutions and non-governmental organizations through the GeoEye Foundation ( www.geoeyefoundation.org). Additional information about GeoEye is available at www.geoeye.com.
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This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Without limitation, the words "anticipates," "believes," "estimates," "expects," "intends," "plans," "will" and similar expressions are intended to identify forward-looking statements. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future, including statements relating to growth, expected levels of expenditures and statements expressing general optimism about future operating results, are forward-looking statements. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements and those presented elsewhere by our management from time to time are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. These risks and uncertainties include, but are not limited to, those described in "Risk Factors" included in our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2009, which we filed with the Securities and Exchange Commission ("SEC") on March 12, 2010, and our Quarterly Reports on Form 10-Q for the periods ended March 31, 2010, and June 30, 2010, which we filed with the SEC on May 10, 2010, and August 9, 2010, respectively. Copies of all SEC filings may be obtained from the SEC's EDGAR web site, http://www.sec.gov/, or by contacting: William L. Warren, Senior Vice President, General Counsel and Secretary, at 703-480-5672.
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