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EURELY takes a further step toward GALILEO CONCESSION

25 January 2005

Eurely, the consortium formed by Alcatel, Finmeccanica, AENA and Hispasat, today provided its final proposal for the Galileo Concession. The offer, submitted to the European Commission by Eurely, contains further details and binding commitments to manage the services of the new satellite based European navigation system, in addition to the original proposal of September 2004.

The Eurely proposal exceeds the European Commission and ESA requirements for the systems, due to the unrivalled competence and strengths of all its international partners in satellite services. The Eurely business plan is already today fully funded, as equity and other financing, on a non recourse basis, are over-subscribed.

Eurely's unmatched industrial competence is based on the strong and diverse experience developed by the partners in all space related manufacturing, operations and services as well as applications domains. Eurely still continues to attract major European companies eager to cooperate on an exclusive basis to develop applications in the domain of their expertise. More than 40 companies from a wide variety of business sectors, such as telecommunications, civil works and road management, railways and defence have joined Eurely in the meantime (see list at bottom of release).

Through these partnerships and the connected capabilities, Eurely is in the unique position to cover all relevant sectors of the future markets for Galileo, such as location based services which are already under development, toll systems, air navigation, emergency applications, transportation safety systems and more.

Furthermore, the Eurely consortium can build on the unique experience and expertise in high precision navigation systems acquired through its EGNOS activities under the leadership of Alcatel Space as prime contractor to ESA. Today the EGNOS system is utilizing existing GPS signals and is built to increase the integrity and to improve continuity, accuracy as well as the reliability of those signals for transportation applications. EGNOS is an important prerequisite in building and testing value add services already today and therefore provides a head-start to Eurely in developing applications for Galileo.

A strong endorsement of the capabilities of the members of Eurely is the most recent achievement in the history of space: the success of the Cassini-Huygens mission with the landing and the operation of the Huygens probe on TITAN which exceeded the expectations of ESA and Europe. As Alcatel Space was the prime contractor of Huygens and Alenia Spazio has developed some of the most critical and innovative systems in the Cassini spacecraft, Eurely is especially proud to include such companies that are part of this European success.

Through its partners and expertise the Eurely Consortium is uniquely positioned and strongly committed to be "the" concessionaire to manage the construction and operations of Galileo for Europe.

Note to the Editor:

THE FOUNDERS OF EURELY

AENA: Aena is a Public Business Entity entrusted with the planning, development, building, installation, operation and managing of the 44(+3) Spanish civil airports and the air navigation system for all airspace under Spanish responsibility, with 5 Area Control Centres covering 4 Flight Information Regions (FIR/UIR). Aena also manages 15 airports in Central and South America. Aena integrates all Spanish civil aeronautical infrastructure activities in one single organisation staffed by qualified professionals, with a business philosophy whilst keeping the best of public service spirit, technological innovation and safety management.
Aena strategy is to operate as a service company offering its customers (airline companies and air transport users in general) a safe, efficient and high quality of service, fostering economic progress.

ALCATEL : Alcatel is a world-wide company, incorporated in France, leader in Communications and Broadband solutions for Telecommunication Services Providers, as well as Transports, Governmental, Health, Education and Oil & Gas. With sales of Euro12.5Bn in 2003, Alcatel operates in over 130 countries. It main activities are :
§ Fixed Communication Solutions : designing and building networks with the choice of a full array of turnkey solutions, both for Telephony and Broadband applications
§ Mobile Communication Solutions : both in ground networks and in mobile handset, preparing the happening of the 3G (UTMS)
§ Private Communication Solutions : Enterprise, Railways / Urban transport, and Space developing complete solutions in telecommunication, navigation, radar and optical observation, meteorological and scientific satellites for dual use. Alcatel Space is also the Prime Contractor of EGNOS, the precursor to the Galileo system.

FINMECCANICA : Finmeccanica is the Italian leader in high technology and plays key roles in every main programme and project in the aerospace and defence sectors, contributing its own exclusive design, development and production competencies. Aerospace and defence activities accounted for 75% of Euro 8.6Bn, consolidated Group turnover in 2003. Its main activities are :
§ Aeronautics: aircraft (transport, combat, trainers, components, maintenance and operations) and helicopters (military and commercial),
§ Space: design, development & production of civil and military satellites, space infrastructures and equipment; LEOP services and operations of GEO fleets and non GEO constellations; satellite based services (TLC, Earth Observation, etc.); unique capabilities in constellation manufacturing and operations,
§ Defence Electronics: avionics, radar, land and sea C3, air traffic and communication systems
§ Defence Systems: vehicles and artillery, underwater systems and missiles systems,
§ Energy and Transportation (power generation and related services, urban transportation systems, rail signalling systems and trains),

HISPASAT: Hispasat is a Spanish group of companies that started in 1989 as satellite system operator for commercial and governmental/military communication services, provision of engineering solutions and new advanced projects. Its satellite fleet is located at 30 W and 61 W orbital positions to provide all types of communication services at both sides of the Atlantic. The footprints illuminate Europe, North Africa and America, with special emphasis on Brazil and other Latin American countries through the recently launched Amazonas satellite. The commercial presence in America is steered from Brazil by HISPAMAR, a subsidiary company of the group.
HISPASAT has proven experience in satellite engineering, procurement, launch, testing and operations, with satellite ground control and monitoring premises in Spain, Brazil, Argentina and Mexico as well as appropriate knowledge in Security. HISPASAT has been cleared by the Spanish Ministry of Defence (SMOD) since 1990.

THE PARTNERS OF EURELY

Eurely's Core Members, Advisers, Associated Companies and Institutional Partners are set out below.

Eurely Core Members

Alcatel (France) Fixed & mobile TLC networks, space systems, train and subway signaling, governmental solutions, enterprise
Finmeccanica (Italy) Aerospace & defence, transportation & signalling, energy, information technology
Aena (Spain) Air traffic management, airports operations, concessions
Hispasat (Spain) TLCs, satellite operator

Eurely Advisors
Clifford Chance (UK) Legal
Deutsche Bank (Germany) Financial
International Space Brokers (UK) Risk and Insurance

Eurely Associated Companies
Alcatel Space (F, Sp, G, B)
Space systems

Alenia Spazio (Italy)
Space systems

ASF (France)
Roads, concessions

Boeing (US)
Space systems, GNSS

Capgemini (France)
Consulting, technology, service outsourcing

Casic (China)
Aerospace

Chinasat (China)
Telecom satellites operator

COMDEV (Canada)
Space qualified hardware subsystems

Enav (Italy)
Air traffic management

Ertico (Belgium)
European lobby group in Intelligent Transport Systems

Ferrovie dello Stato (Italy)
Railways, transportation

GMV (Spain)
Software and terrestrial solutions for GNSS, EGNOS

Hochtief (Germay)
Concessions, civil works, roads,

Indra (Spain)
Space systems, telematics

Ineco (Spain)
Railways, transportation

Isdefe (Spain)
Security & defence

Israel Aircraft Industries (Israel)
Aerospace & defence

Magyar Tudomanyos Akademia SZTAKI (Hungary)
Hungary University (telematics and telecom)

Navteq (US)
Navigation services

Roskosmos (Russia) - also with NPO-PM (Glonass)
Space agency - Eurely ties also with NPO-PM, the Glonass satellite manufacturer

Saab (Sweden)
Road transportations

Sd&m (Germany)
Automotive markets

Septentrio (Belgium)
Chipset manufacturing

Serco (UK)
Infrastructure maintenance, service outsourcing, concessions

SFR (France)
Mobile TLCs

SSC (Sweden)
Satellite operations

ST Microelectronics (Italy)
Chipset manufacturing

Telecom Italia Research (Italy)
Fixed & mobile TLCs - Solutions

Telecom Italia (Italy)
Fixed & mobile TLCs - Services

Telespazio (Italy)
Space operations, satellite based services

Telvent (Spain)
Technical services for mission-critical, real-time control and information management

Sophia Antipolis (France)
University

Value Partners (Italy)
Business development, consulting

Vinci Concessions (France)
Concessions, PPP
Numerous institutions, European regions and National Agencies have also shown their interest to support the Galileo Concessionaire and provide their specific skills in domains like : infrastructure, operations, signal performances, technologies, market development, certification, etc. (on both Galileo and EGNOS).



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