MSCI Announces a Global Satellite Communications Constellation Called COMMStellation(TM)

COMMStellation(TM) Will Address Global Wireless Backhaul Demand

MISSISSAUGA, Ontario, January 19, 2011 - To view the Social Media Release, click here:
smr.newswire.ca/en/microsat-systems-canada-inc/msci-announces-a-global-satellite-communications-constellation

Microsat Systems Canada Inc. (MSCI) (formerly the Space Division of
Dynacon Inc.), Canada's designer and builder of the Multi Mission
Microsatellite Bus (MMMB) and Commercial Microsatellite Bus (CMB), is pleased
to announce the development of COMMStellation(TM), a polar communications
constellation comprised of 78 microsatellites that will orbit the Earth at
1,000 km, providing backhaul capacity while connecting remote regions of the
Earth to the Internet.

"The influx of millions of data-hungry mobile devices, such as
smartphones and tablets, is causing unprecedented strain on mobile networks,
which have already reached, or are nearing, capacity," explains David R.
Cooper, President and CEO, MSCI. "COMMStellation(TM) will provide essential
backhaul capacity to mobile operators across the globe. It's an initiative
many governments are pushing for because of its ability to connect all of
Earth's citizens to the Internet."

Companies such as RIM, Apple, Microsoft, Google, Nokia, Yahoo!, Facebook,
and Netflix, whose business models increasingly rely on high-speed Internet
communications to stream data, are reliant on mobile operators and Internet
service providers to enable fast, reliable, and uninterrupted data transfer.
"While demand for backhaul bandwidth grows exponentially, there is downward
pressure on consumer wireless pricing," explains Michael Neuman, former CEO
of Bell ExpressVu Satellite TV and Founder of Elevest Corporation. "This
situation, together with the need to reach economically challenged population
centers, calls for an innovative, low-cost satellite solution."

"High-speed backhaul infrastructure is the single most important enabler
to the growth of Internet business models and wealth generation," adds Mr.
Cooper. "If a country does not have it - it will fall behind."

"COMMStellation(TM) is a completely unique solution born from
non-traditional thinking," says Justin Phillips, VP Marketing, MSCI. "Until
now, no one in the industry has been able to find the manufacturing cost and
scheduling efficiencies, and cost-effective microsatellite technology to
enable an economically viable constellation of satellites to provide 100%
global coverage."

O3b (Other Three Billion), a network service provider, is launching an
initial constellation of eight medium-Earth orbit (MEO) satellites into space
at an altitude of 8,000 km to address the backhaul market for the "other
three billion" - i.e. those with limited or no access to the Internet.

In comparison, MSCI's microsatellite technology enables a constellation
of 78 polar low-Earth orbit (LEO) satellites at 1,000 km above the Earth - in
other words, an orbit eight times closer to the customer. COMMStellation(TM)
will provide over five times the data bandwidth density, even at the equator,
for the same satellite output, and all for hundreds of millions less cost. In
addition, COMMStellation(TM) will provide 1/8 the data latency, ten times the
total constellation capacity, and potentially provide bandwidth to any of
Earth's 6.9 billion (estimate) population, not just the "other three
billion."

As noted by Elizabeth Tweedie at the COMSYS VSAT 2010 Conference
(www.satellitemarkets.com/node/732), the demand for backhaul is so
great that even "…with a full constellation, O3b addresses less than 0.5%
of the Emerging Markets [for] 3G backhaul…"

MSCI is partnering with some of the top global leaders in
satellite-communications technology to provide the antenna payload and to
integrate with MSCI's proven Multi Mission Microsatellite Bus (MMMB)
architecture. MSCI continues to discuss partnerships with other companies
with complementary interests.

"We are looking for service providers who want to improve service to
their customers, technology partners who can bring complementary technologies
to the COMMStellation(TM) initiative, military or industrial leaders who are
looking for strategic communications to and from remote areas, and
governments that want to improve the lives of all citizens - not only those
who live in well served urban areas," says Mr. Cooper.

If you are interested in joining our partnership group, or would like to
know more, visit the COMMStellation(TM) website at
www.commstellation.com, email us at commstellation@mscinc.ca, or
schedule a call via Justin Phillips, VP Marketing, MSCI at +1-905-673-0500.

About MSCI

MSCI is Canada's leader in the design, development, and delivery of
cost-effective microsatellites, and the developer of Canada's Multi Mission
Microsatellite Bus (MMMB) and Commercial Microsatellite Bus (CMB) technology.
These satellites are capable of hosting a wide variety of remote sensing,
military, scientific, and communications payloads, including COMMStellation(
TM), a microsatellite constellation focused on global backhaul connectivity.

For more information about MSCI, please visit www.mscinc.ca.
Additional product-specific information about MSCI's MicroWheel (reaction
wheel) attitude control systems can be found at www.reactionwheel.com,
and COMMStellation(TM) at www.commstellation.com.

    For further information:

    Justin Phillips
    Vice President, Marketing
    Microsat Systems Canada Inc. (MSCI)
    +1-905-673-0500
    justin.phillips@mscinc.ca

For further information: Justin Phillips, Vice President, Marketing, Microsat Systems Canada Inc. (MSCI), +1-905-673-0500, justin.phillips at mscinc.ca