Dual-use Platforms Herald New Opportunities for the Global Satellite Manufacturing Market, Finds Frost & Sullivan

LONDON, April 14, 2010 - With demand growing for higher bandwidth communications and finite
orbital slots, satellite operators want satellites that are more powerful and
flexible than ever before. The wider acceptance of dual-use platforms in the
global satellite manufacturing market will bring new opportunities to
satellite owners, satellite service providers and satellite manufacturers.

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New analysis from Frost & Sullivan (www.aerospace.frost.com),
Global Satellite Manufacturing: The Impact of the Evolving Trends, finds that
satellite manufacturing market revenues in 2009 increased by 10 percent over
2008. From 2009-2018, the global satellite manufacturing market will generate
approximately $94.00 billion in revenues, with average global satellite
manufacturing market revenues reaching roughly $9.4 billion per year from
2009 to 2018.

"Communications is an emulsification of several applications, bringing
various end users diverse opportunities for growth across all segments," says
Frost & Sullivan Consulting Analyst Aman Pannu. "Although it is an important
market that will grow steadily, satellite manufacturing is limited by the low
margins and tightly designed contracts of the commercial communications
market."

Suppliers invest more on R&D as they need to offer innovative and robust
equipment for next generation systems to the primes to incorporate in the
larger projects. The risk perception of R&D is lower at the supplier level
than at prime levels, as the risk is contained to a specific component /
sub-system rather than the whole satellite system. Once the R&D output is
thoroughly tested and ratified, the system can be adopted onto the main
system on, with minimal / no risk.

Miniaturised components and subsystems, low-mass, high-strength
structural material and low-mass and low-volume batteries are some areas that
satellite manufacturers need to develop. These enhancements will not only
improve efficiency, especially for smaller satellite platforms, but also
allow the deployment of these platforms in diverse applications such as
high-resolution earth imagery, rapid deployment communications and
reconnaissance.

However, the low-cost production capabilities of countries such as India
and China challenge the future satellite manufacturing market share of
developed countries. The combination of a highly skilled workforce,
inexpensive labour and low production costs enables India and China to
compete effectively with the established space economies of the West.

"India and China have production costs that are up to 60 percent lower
than those of western space participants," explains Pannu. "This encourages
strategic international partnerships such as the one between China and
Nigeria / Brazil and India's working relationship with Europe and Russia."

Without a true understanding of the nature and dynamics of the market,
companies will be unable to manoeuvre the future market successfully. It is
crucial to understand not only the demand and supply dynamics but also the
capabilities of a market, in terms of the skilled resources, production
costs, reliability perception and market regulations.

"Knowledge of the potential benefits of strategic partnerships and
alliances and a clear understanding of future market demands will improve
prospects for potential market participants," concludes Pannu. "A firm grasp
of the regional and global market and of how business is conducted can only
boost revenues in the long-term."

If you are interested in more information on this study, please e-mail
Monika Kwiecinska, Corporate Communications, at monika.kwiecinska@frost.com,
with your full name, company name, title, telephone number, company e-mail
address, company website, city, state and country.

Global Satellite Manufacturing: The Impact of the Evolving Trends is part
of the Aerospace Growth Partnership Services programme, which also includes
research in the following markets: World Civil and Military Space Systems;
Satellite Vs Terrestrial; Growing Importance of Consumer Spending to
Satellite Markets; Military Satellite Communications; World demand for
Commercial Satellite Communications; Global Space Stakeholder Mapping- a
Strategic Analysis of the Global Space Industry. All research services
included in subscriptions provide detailed market opportunities and industry
trends that have been evaluated following extensive interviews with market
participants.

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       Global Satellite Manufacturing: The Impact of the Evolving Trends
                                     M4B0

    Contact:
    Monika Kwiecinska
    Corporate Communications - Europe
    P: +48-22-390-4127
    F: +48-22-390-4160
    E: monika.kwiecinska@frost.com

www.frost.com

Monika Kwiecinska of Frost & Sullivan Corporate Communications - Europe, +48-22-390-4127, fax, +48-22-390-4160, monika.kwiecinska at frost.com