Inmarsat plc Interim Management Statement

By Inmarsat Plc, PRNE
Monday, May 10, 2010

LONDON, May 11, 2010 - Inmarsat plc (LSE: ISAT), the leading provider of global
mobile satellite communications services, today provided the following
information for the 3 months ended 31 March 2010.

Inmarsat plc Highlights

    - Inmarsat Global MSS revenue $181.2m up 12.3% (2009: $161.3m)

    - Total revenue $281.5m up 11.8% (2009: $251.8m)

    - Acquisition of Segovia government solutions business

    - EUR225m EIB financing facility completed to fund Alphasat

    - Global handheld satellite phone launch set for June

Inmarsat Group Limited[1] Highlights

    - Q1 EBITDA $144.1m up 22.8% (2009: $117.3m)

    - Q1 Free Cash Flow $104.7m up 146% (2009: $42.6m)

Andrew Sukawaty, Inmarsat's Chairman and Chief Executive
Officer, said, "We have started the year with strong revenue growth and seen
very strong cash flow growth in our Inmarsat Global business. We continue to
be confident in our market opportunities and believe we are on track to
deliver our objectives for the year."

    Inmarsat plc Revenue

                                     Three months
                                       ended        Increase/
                                      31 March     (decrease)

    (US$ in millions)                 2010   2009

    Inmarsat Global                  200.7  163.4   22.8%
    Stratos                          159.9  156.6    2.1%
                                     360.6  320.0   12.7%
    Intercompany eliminations and
    adjustments                      (79.1) (68.2)
    Total revenue                    281.5  251.8   11.8%
    Inmarsat Global

    Inmarsat Global
    Revenue Breakdown                               Three months
                                                      ended         Increase/
                                                     31 March      (decrease)

    (US$ in millions)                              2010     2009

    Maritime sector

    Voice services                                 24.2     26.2      (7.6%)
    Data services                                  62.0     59.9       3.5%
    Total maritime sector                          86.2     86.1       0.1%
    Land mobile sector

    Voice services                                  2.2      2.4      (8.3%)
    Data services                                  43.0     32.1      34.0%
    Total land mobile sector                       45.2     34.5      31.0%
    Aeronautical sector                            22.8     16.8      35.7%
    Leasing                                        27.0     23.9      13.0%
    Total mobile satellite communications
    services                                      181.2    161.3      12.3%
    Other income                                   19.5      2.1     828.6%
    Total revenue                                 200.7    163.4      22.8%

During the first quarter our maritime revenue was impacted by
lower traffic volumes. However, additions of new Fleet and FleetBroadband
terminals were particularly strong, with over 2,000 new terminals added in
the quarter. Although we see continued weakness in our maritime voice
revenue, we believe demand for data services remains solid and can deliver
further growth during the rest of the year.

The land mobile sector revenue was driven by strong underlying
demand for our BGAN service and additional BGAN demand in response to the
earthquake events in Haiti and Chile. BGAN revenue for the quarter increased
by 62% compared to the prior year.

Our aeronautical and leasing sectors have continued to perform
strongly. Aeronautical revenue growth was driven by high levels of demand for
our Swift 64 service and steady revenue growth from our SwiftBroadband
service. New additions of SwiftBroadband terminals remained strong and well
ahead of our Swift 64 service.

Our leasing business growth was driven by new leasing business
across our business sectors.

Growth in other income primarily reflects the revenue
contribution from our Segovia business acquisition with effect from 12
January 2010


    Revenue Breakdown
                            Three months      Increase/
                               ended          (decrease)
                              31 March            %                                                

    (US$ in millions)          2010    2009

    MSS revenue

    Inmarsat MSS              108.8   101.4       7.3%
    Other MSS                  32.2    31.0       3.9%
    Total MSS revenue         141.0   132.4       6.5%
    Broadband                  18.9    24.2     (21.9%)
    Total revenue             159.9   156.6       2.1%

Our Stratos Inmarsat MSS revenue growth was driven by strong
growth in land mobile, aeronautical, and leasing, offset by a small decline
in maritime revenues. Growth in other MSS revenue was primarily driven by
increases in traffic carried over the Stratos network for other Inmarsat
distributors. The factors contributing to lower broadband revenue were
broadly unchanged and mainly reflect the impact of current economic

Liquidity and Foreign Exchange Hedging

At 31 March 2010, the Inmarsat plc group had net borrowings of
$1,328.8m, made up of cash of $294.5m and total borrowings of $1,623.3m.
Taking into consideration our cash on hand and available but undrawn
borrowing facilities of $110.0m, the group had total available liquidity of
$404.5m at the end of the quarter. On 19 April, we announced that we had
completed an 8-year EUR225.0m facility with the European Investment Bank to
fund the build and launch of our Alphasat satellite.

We recently decided to complete hedging arrangements for our
anticipated sterling costs in both 2011 and 2012. As a result, we now expect
our hedged rate of exchange for 2011 to be US$1.52/GBP1.00 and for 2012 to be

Our Financial Reports

Inmarsat Group Limited today reported unaudited consolidated
financial results for the three months ended 31 March 2010. Inmarsat Group
Limited is our wholly-owned subsidiary and is required by the terms of its
outstanding debt securities to report quarterly results. A copy of the full
financial report for Inmarsat Group Limited can be accessed via the investor
relations section of our website.

As a result of our recently announced reorganisation plan, we
expect that Stratos will no longer be required to report quarterly results
and, as a result, no report for 3 months ended 31 March 2010 will be
released. For the 3 months to 30 June 2010 and for all reporting periods
beyond, the results of Stratos will be consolidated into the results of
Inmarsat Group Limited and segmental analysis of the results of both Inmarsat
and Stratos businesses will be provided. In future, the results of our
Segovia business will be consolidated into the segmental results for Stratos
within the Broadband business line.

Other Information

Other than disclosed in this Interim Management Statement and
the above mentioned report of Inmarsat Group Limited, there have been no
material events or transactions that have taken place in the reporting
period. This Interim Management Statement is required by the UK Listing
Authority's Disclosure and Transparency Rules.

Inmarsat management will discuss the first quarter results and
other financial and business information in a conference call on Tuesday, 11
May at 2:00 p.m. London time, (United States, 9:00 a.m. EST). To access the
call please dial +44(0)20-7162-0025. The conference id for the call is
863154. The call will be recorded and available for one week after the event.
To access the recording please dial +44(0)20-7031-4064 and enter the access
number 863154. The call will also be available via a webcast, to access the
webcast please go to

Forward-looking Statements

Certain statements in this announcement constitute
"forward-looking statements" within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking statements
involve risks, uncertainties and other factors that may cause our actual
results, performance or achievements, or industry results, to be materially
different from those projected in the forward-looking statements. These
factors include: general economic and business conditions; changes in
technology; timing or delay in signing, commencement, implementation and
performance of programmes, or the delivery of products or services under
them; structural change in the satellite industry; relationships with
customers; competition; and ability to attract personnel. You are cautioned
not to rely on these forward-looking statements, which speak only as of the
date of this announcement. We undertake no obligation to update or revise any
forward-looking statement to reflect any change in our expectations or any
change in events, conditions or circumstances.

[1] Inmarsat Group Limited results include the results of our recent
Segovia acquisition, but exclude the results of Stratos Global Corporation.

Contact: Inmarsat, London, UK, Investor Enquiries, Simon Ailes, Tel: +44(0)20-7728-1518, simon_ailes at; Media Enquiries, John Warehand, Tel: +44(0)20-7728-1579, john_warehand at

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