DigitalGlobe Reports Second Quarter 2013 Results

We believe that the presentation of EBITDA and Adjusted EBITDA enables a more consistent measurement of period to period performance of our operations and facilitates comparison of our operating performance to companies in our industry. We believe that EBITDA and Adjusted EBITDA measures are particularly important in a capital intensive industry such as ours, in which our current period depreciation is not a good indication of our current or future period capital expenditures. The cost to construct and launch a satellite and to build the related ground infrastructure may vary greatly from one satellite to another, depending on the satellite's size, type and capabilities. For example, our QuickBird satellite, which we are currently depreciating, cost significantly less than our WorldView-1 and WorldView-2 satellites. Current depreciation expense is not indicative of the net revenue generating potential of the satellite.

EBITDA excludes interest income, interest expense and income taxes because these items are associated with our capitalization and tax structures. EBITDA also excludes depreciation and amortization expense because these non-cash expenses reflect the impact of prior capital expenditure decisions which are not indicative of future capital expenditure requirements.

Adjusted EBITDA further adjusts EBITDA to exclude restructuring costs, acquisition costs, integration costs and the gain from our joint venture as these are non-core items. Restructuring costs are costs incurred to realize efficiencies from the GeoEye acquisition, such as reducing excess workforce, consolidating facilities and systems, and relocating ground terminals. Acquisition costs are costs incurred to effect the acquisition, such as advisory, legal, accounting, consulting and other professional fees. Integration costs consist primarily of professional fees incurred to assist us with system and process improvements associated with integrating operations. Adjusted EBITDA margin is calculated by divided Adjusted EBITDA by U.S. GAAP net revenue.

We use EBITDA and Adjusted EBITDA in conjunction with traditional U.S. GAAP operating performance measures as part of our overall assessment of our performance and we do not place undue reliance on measures as our only measures of operating performance. EBITDA and Adjusted EBITDA should not be considered as substitutes for other measures of financial performance reported in accordance with U.S. GAAP.

FINANCIAL TABLES TO FOLLOW

                             DigitalGlobe, Inc.                             
         Unaudited Condensed Consolidated Statements of Operations          
                                                                            
                                                For the three months ended  
                                                         June 30,           
(in millions, except per share data)                2013           2012     
                                               -------------  ------------- 
Revenue                                        $       150.6  $       101.8 
Costs and expenses:                                                         
  Cost of revenue, excluding depreciation and                               
   amortization                                         47.3           20.0 
  Selling, general and administrative                   64.5           33.5 
  Depreciation and amortization                         59.0           28.5 
  Restructuring charges                                 13.6              - 
                                               -------------  ------------- 
(Loss) income from operations                          (33.8)          19.8 
  Loss from early extinguishment of debt                   -              - 
  Other income (expense), net                            0.1           (0.4)
  Interest expense, net                                 (1.4)          (2.6)
                                               -------------  ------------- 
(Loss) income before income taxes                      (35.1)          16.8 
  Income tax benefit (expense)                          14.1           (7.2)
                                               -------------  ------------- 
Net (loss) income                                                     (21.0)                      9.6  
Preferred  stock  dividends                                                              (1.0)                          -  
                                                                                              -------------    -------------  
Net  (loss)  income  less  preferred  stock                                                                            
  dividends                                                                                          (22.0)                      9.6  
Income  allocated  to  participating  securities                              -                            -  
                                                                                              -------------    -------------  
Net  (loss)  income  available  to  common                                                                              
  stockholders                                                                    $              (22.0)  $                  9.6  
                                                                                              =============    =============  
                                                                                                                                                        
(Loss)  earnings  per  share:                                                                                                    
    Basic  (loss)  earnings  per  share                            $              (0.30)  $                0.21  
                                                                                              =============    =============  
    Diluted  (loss)  earnings  per  share                        $              (0.30)  $                0.21  
                                                                                              =============    =============  
Weighted  average  common  shares  outstanding:                                                                  
    Basic                                                                                                  74.0                      46.0  
                                                                                              =============    =============  
    Diluted                                                                                              74.0                      46.2  
                                                                                              =============    =============  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                          DigitalGlobe,  Inc.                                                          
                                                                                                                                                        
                  Reconciliation  Net  Income  (Loss)  EBITDA  and  Adjusted  EBITDA                
                                                                                                                                                        
                                                                                                  For  the  three  months  ended  
                                                                                                                    June  30,                    
(in  millions)                                                                              2013                      2012          
                                                                                              -------------    --------------
Net  (loss)  income                                                            $              (21.0)  $                    9.6
Depreciation  and  amortization                                                      59.0                        28.5
Interest  (income)  expense,  net                                                      1.4                          2.6
Income  tax  expense  (benefit)                                                      (14.1)                        7.2
                                                                                              -------------    --------------
EBITDA                                                                                                    25.3                        47.9
Loss  from  early  extinguishment  of  debt                                          -                              -
Restructuring  charges  (1)                                                              13.6                              -
Acquisition  costs  (1)                                                                      (0.2)                            -
Integration  costs  (1)                                                                        7.2                              -
Other  (gains)  losses  (2)                                                                (0.2)                            -
                                                                                              -------------    --------------
Adjusted  EBITDA                                                                $                45.7    $                  47.9
                                                                                              =============    ==============
                                                                                                                                                        
                                                                                                                                                        
1.  Restructuring,  acquisition  and  integration  costs  consist  of  non-recurring
  charges  related  to  the  combination  with  GeoEye.                                                        
2.  Other  (gains)  losses  consist  of  a  gain  from  our  investment  in  a  joint        
  venture.                                                                                                                                      
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                          DigitalGlobe,  Inc.                                                          
                                                                                                                                                        
                            Unaudited  Condensed  Consolidated  Balance  Sheets                              
                                                                                                                                                        
                                                                                                  June  30,            December  31,  
(in  millions,  except  par  value)                                          2013                      2012          
                                                                                              -------------    -------------  
ASSETS                                                                                                                                            
CURRENT  ASSETS:                                                                                                                          
Cash  and  cash  equivalents                                            $              241.4    $              246.2  
Restricted  cash                                                                                  17.6                        3.8  
Accounts  receivable,  net  of  allowance  for                                                                      
  doubtful  accounts  of  $2.1  and  $2.9,                                                                                
  respectively                                                                                    101.4                      67.0  
Prepaid  and  current  assets                                                            28.5                      18.6  
Deferred  taxes                                                                                    70.6                      43.9  
                                                                                              -------------    -------------  
    Total  current  assets                                                                  459.5                    379.5  
Property  and  equipment,  net  of  accumulated                                                                    
  depreciation  of  $774.1  and  $676.2,                                                                                  
  respectively                                                                                2,160.1                1,115.2  
Goodwill                                                                                              450.8                        8.7  
Intangible  assets,  net  of  accumulated                                                                              
  amortization  of  $3.8  and  $0,  respectively                            40.8                            -  
Aerial  image  library,  net  of  accumulated                                                                        
  amortization  of  $37.4  and  $33.4,  respectively                    12.9                      16.4  
Long-term  restricted  cash                                                                7.7                        8.3  
Long-term  deferred  contract  costs                                              48.1                      37.3  
Other  assets                                                                                        42.7                      12.1  
                                                                                              -------------    -------------  
    Total  assets                                                                  $          3,222.6    $          1,577.5  
                                                                                              =============    =============  
LIABILITIES  AND  STOCKHOLDERS'  EQUITY                                                                                
CURRENT  LIABILITIES:                                                                                                                
Accounts  payable                                                              $                17.9    $                10.2  
Current  portion  of  long-term  debt                                                5.5                        5.0  
Other  accrued  liabilities                                                              93.4                      56.3  
Current  portion  of  deferred  revenue                                          68.6                      42.9  
                                                                                              -------------    -------------  
    Total  current  liabilities                                                        185.4                    114.4  
Deferred  revenue                                                                              393.9                    386.8  
Long-term  debt,  net  of  discount                                            1,139.6                    478.6  
Long-term  deferred  tax  liability,  net                                    147.1                      55.6  
Other  liabilities                                                                                2.6                        2.7  
                                                                                              -------------    -------------  
    Total  liabilities                                                                    1,868.6    $          1,038.1  
                                                                                              -------------    -------------  
COMMITMENTS  AND  CONTINGENCIES  (Note  15)                                                                          
STOCKHOLDERS'  EQUITY:                                                                                                              
Preferred  stock,  $0.001  par  value;  24.0  shares                                                            
  authorized;  no  shares  issued  and  outstanding                                                              
  at  June  30,  2013  and  December  31,  2012                                        -                            -  
Series  A  convertible  preferred  stock,  $0.001                                                                
  par  value,  0.08  shares  authorized;  0.08  issued                                                          
  and  outstanding  at  June  30,  2013;  and  no                                                                      
  shares  authorized,  issued  and  outstanding  at                                                              
  December  31,  2012                                                                                  -                            -  
Common  stock;  $0.001  par  value;  250.0  shares                                                                
  authorized;  75.1  shares  issued  and  74.9  shares                                                          
  outstanding  at  June  30,  2013;  and  47.2  shares                                                            
  issued  and  47.1  outstanding  at  December  31,                                                                
  2012                                                                                                        0.2                        0.2  
Treasury  stock,  at  cost;  0.2  shares  at  June  30,                                                          
  2013  and  0.1  shares  at  December  31,  2012                              (3.2)                    (2.0)
Additional  paid-in  capital                                                      1,441.2                    543.8  
Accumulated  deficit                                                                        (84.2)                    (2.6)
                                                                                              -------------    -------------  
    Total  stockholders'  equity                                                  1,354.0                    539.4  
                                                                                              -------------    -------------  
    Total  liabilities  and  stockholders'  equity      $          3,222.6    $          1,577.5  
                                                                                              =============    =============  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                          DigitalGlobe,  Inc.                                                          
                                                                                                                                                        
                  Unaudited  Condensed  Consolidated  Statements  of  Cash  Flows                    
                                                                                                                                                        
                                                                                              For  the  six  months  ended          
                                                                                                              June  30,                          
(in  millions)                                                                        2013                          2012            
                                                                                      ---------------    ---------------  
CASH  FLOWS  FROM  OPERATING  ACTIVITIES:                                                                              
Net  (loss)  income                                                    $                  (81.6)  $                    13.4  
Adjustments  to  reconcile  net  income  (loss)                                                                    
  to  net  cash  provided  by  operating                                                                                    
  activities:                                                                                                                                
    Depreciation  and  amortization  expense                            105.8                          57.6  
    Amortization  of  aerial  image  library,                                                                          
      deferred  contract  costs  and  lease                                                                                
      incentive                                                                                      8.1                          10.5  
    Non-cash  stock  compensation  expense                                  16.0                            4.7  
    Amortization  of  debt  issuance  costs  and                                                                      
      accretion  of  debt  discount                                                    3.1                            1.9  
    Deferred  income  taxes                                                            (33.9)                        10.1  
    Write-off  of  debt  issuance  costs  and  debt                                                                  
      discounts                                                                                    12.8                                -  
Changes  in  working  capital,  net  of  assets                                                                      
  acquired  and  liabilities  assumed  in                                                                                
  business  combinations:                                                                                                          
    Accounts  receivable,  net                                                          4.6                            3.2  
    Other  current  and  non-current  assets                                  1.3                          (8.3)
    Accounts  payable                                                                        (1.7)                          5.7  
    Accrued  liabilities                                                                (31.5)                      (13.5)
    Deferred  revenue                                                                        19.5                          31.0  
    Deferred  contract  costs                                                          (7.1)                        (0.5)
    Payment  of  2011  Senior  Secured  debt                                                                              
      discount                                                                                    (13.8)                              -  
                                                                                      ---------------    ---------------  
Net  cash  flows  provided  by  operating                                                                                
  activities                                                                                        1.6                        115.8  
                                                                                      ---------------    ---------------  
CASH  FLOWS  FROM  INVESTING  ACTIVITIES:                                                                              
    Construction  in  progress  additions                                (135.0)                      (96.5)
    Acquisition  of  businesses,  net  of  cash                                                                        
      acquired                                                                                  (524.0)                              -  
    Other  property  and  equipment  additions                            (9.0)                        (4.8)
    Increase  in  restricted  cash                                                    2.7                            1.9  
                                                                                      ---------------    ---------------  
Net  cash  flows  used  in  investing  activities                  (665.3)                      (99.4)
                                                                                      ---------------    ---------------  
CASH  FLOWS  FROM  FINANCING  ACTIVITIES:                                                                              
    Proceeds  from  issuance  of  debt                                      1,150.0                                -  
    Repayment  of  debt                                                                  (482.6)                        (2.5)
    Preferred  stock  dividend  payment                                        (1.0)                              -  
    Proceeds  from  exercise  of  stock  options                          28.7                                -  
    Payment  of  debt  issuance  costs                                          (36.2)                              -  
                                                                                      ---------------    ---------------  
Net  cash  flows  provided  by  (used  in)                                                                                
  financing  activities                                                                658.9                          (2.5)
                                                                                      ---------------    ---------------  
Net  (decrease)  increase  in  cash  and  cash                                                                        
  equivalents                                                                                    (4.8)                        13.9  
Cash  and  cash  equivalents,  beginning  of                                                                          
  period                                                                                            246.2                        198.5  
                                                                                      ---------------    ---------------  
Cash  and  cash  equivalents,  end  of  period      $                  241.4    $                  212.4  
                                                                                      ===============    ===============  
SUPPLEMENTAL  CASH  FLOW  INFORMATION:                                                                                  
Cash  paid  for  interest,  net  of  capitalized                                                                    
  amounts  of  $24.6  and  $10.9,  respectively    $                    11.4    $                    15.0  
NON-CASH  INVESTING  AND  FINANCING                                                                                        
  ACTIVITIES:                                                                                                                                
Changes  to  non-cash  construction  in                                                                                  
  progress  accruals,  including  interest                              (13.3)                      (12.8)
Changes  to  non-cash  deferred  contract  cost                                                                    
  accruals                                                                                            9.0                                -  
Issuance  of  shares  of  common  and                                                                                        
  convertible  preferred  stock  for                                                                                        
  acquisition  of  business                                                          836.5                                -  
Stock-based  compensation  awards  issued  in                                                                      
  acquisition  of  business,  net  of  income                                                                          
  taxes                                                                                                13.4                                -  
Non-cash  dividend  accrual                                                            1.0                                -  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
 




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