Exhibit 99.1
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[Logo of ORBCOMM Inc.]
ORBCOMM AND GENERAL ELECTRIC ASSET INTELLIGENCE, LLC
ENTER SETTLEMENT AND SERVICES AGREEMENTS
- New Agreement Provides ORBCOMM Opportunity to Expand and Extend Scope of
Relationship with General Electric Asset Intelligence, LLC Through 2013 -
Fort Lee, NJ, April 9, 2009 - ORBCOMM Inc. (Nasdaq: ORBC), a global satellite
data communications company focused on providing Machine to Machine (M2M)
solutions, with its subsidiary Stellar Satellite Communications Ltd. today
announced the entering into several agreements with General Electric Asset
Intelligence, LLC (GEAI). ORBCOMM will be the sole provider to GEAI of
telematics and M2M data communications on all subscriber communicators sold or
managed by or on behalf of GEAI, whether satellites, cellular, or dual mode
(cellular plus satellite), generally as long as ORBCOMM provides competitive
services at competitive rates with appropriate regulatory approvals, subject to
the terms of the agreement.
Pursuant to the Settlement Agreement, GEAI paid a one-time settlement fee
associated with the prior hardware agreement between GEAI and Stellar dated
October 10, 2006. ORBCOMM and GEAI have concurrently entered into a Services
Agreement, which will expand the scope of services provided by ORBCOMM to GEAI.
The new services, in addition to ORBCOMM's low-earth-orbit satellite-based data
communications services, may include network services for M2M applications using
other satellite, cellular or dual mode (cellular plus satellite) data
communications services thereby focusing on subscriptions rather than hardware
sales. The Services Agreement, whose term coincides with the amended
International Value Added Reseller (IVAR) agreement is for five year through
December 31, 2013.
"We are pleased to have this new agreement with General Electric in place," said
Marc Eisenberg, Chief Executive Officer of ORBCOMM. "The new agreement focuses
on subscriber additions as opposed to hardware sales, further embedding ORBCOMM
into GEAI's go-to-market strategy. As a result, this allows ORBCOMM to leverage
the satellite network and terrestrial reseller agreements we have been
establishing. This agreement strengthens ORBCOMM's relationship with GEAI
through December 31, 2013."
About ORBCOMM Inc.
ORBCOMM is a leading global satellite data communications company, focused on
Machine-to-Machine (M2M) communications. Its customers include Caterpillar Inc.,
Doosan Infracore America, General Electric, Hitachi Construction Machinery,
Hyundai Heavy Industries, Komatsu Ltd., and Volvo Construction Equipment among
other
industry leaders. By means of a global network of low-earth orbit (LEO)
satellites and accompanying ground infrastructure, ORBCOMM's low-cost and
reliable two-way data communications products and services track, monitor and
control mobile and fixed assets in four core markets: commercial transportation;
heavy equipment; industrial fixed assets; and marine/homeland security. The
Company's products are installed on trucks, containers, marine vessels,
locomotives, backhoes, pipelines, oil wells, utility meters, storage tanks and
other assets. ORBCOMM is headquartered in Fort Lee, New Jersey and has a network
control center in Dulles, Virginia. For more information, visit www.orbcomm.com.
Forward-Looking Statements
Certain statements discussed in this press release constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements generally relate to our plans, objectives
and expectations for future events and include statements about our
expectations, beliefs, plans, objectives, intentions, assumptions and other
statements that are not historical facts. Such forward-looking statements,
including those concerning the Company's expectations, are subject to known and
unknown risks and uncertainties, which could cause actual results to differ
materially from the results, projected, expected or implied by the
forward-looking statements, some of which are beyond the Company's control, that
may cause the Company's actual results, performance or achievements, or industry
results, to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. These
risks and uncertainties include but are not limited to: the impact of global
recession and continued worldwide credit and capital constraints; substantial
losses we have incurred and expect to continue to incur; demand for and market
acceptance of our products and services and the applications developed by our
resellers; loss or decline or slowdown in the growth in business from the Asset
Intelligence division of General Electric Company ("GE" or "General Electric" or
"AI"), other value-added resellers or VARs and international value-added
resellers or IVARs; loss or decline or slowdown in growth in business of any of
the specific industry sectors the Company serves, such as transportation, heavy
equipment, fixed assets and maritime; litigation proceedings; technological
changes, pricing pressures and other competitive factors; the inability of our
international resellers to develop markets outside the United States; market
acceptance and success of our Automatic Identification System ("AIS") business;
the in-orbit satellite failure of the Coast Guard demonstration or the
quick-launch satellites, satellite launch and construction delays and cost
overruns and in-orbit satellite failures or reduced performance; the failure of
our system or reductions in levels of service due to technological malfunctions
or deficiencies or other events; our inability to renew or expand our satellite
constellation; political, legal regulatory, government administrative and
economic conditions and developments in the United States and other countries
and territories in which we operate; and changes in our business strategy; and
the other risks described in our filings with the Securities and Exchange
Commission. Unless required by law, we undertake no obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise.
Contacts
Investors:
Lucas Binder
VP, Business Development and Investor Relations
ORBCOMM Inc.
703-433-6505
binder.lucas@orbcomm.com
Media:
Jennifer Lattif
Senior Account Executive
The Abernathy MacGregor Group
212-371-5999
jcl@abmac.com