Washington D.C., June 09, 1999 -- LCC International, Inc. (NASDAQ: LCCI), one of the world's largest RF engineering and system deployment services firms, with integrated tower ownership capabilities, today announced that its contract with XM Satellite Radio Inc. ("XM") has been extended to include, among other things, the deployment of XM's terrestrial repeater network utilized to augment the company's coast-to-coast satellite signal coverage.
In February, LCC was engaged to perform preliminary RF design, site acquisition, zoning and construction analysis and to determine deployment and leasing requirements for XM's network. Today's announcement verifies the extension of the initial 90-day interim agreement for an additional 120 days while the two parties continue to negotiate definitive agreements including agreements covering vendor financing.
The up to $5 million extension calls for LCC to increase its level of activity from defining the technical requirements for XM's satellite terrestrial repeater network in an initial 30 markets to now include preliminary services in the remaining 40 markets of XM's coast-to-coast network. In addition to the continuation of the preliminary design and implementation work, LCC will begin actual deployment activities in 5 major markets around the country.
It was announced yesterday that Clear Channel Communications Inc.; DIRECTV, Inc., a unit of Hughes Electronics Corporation; The General Motors Corporation; and a private investment group comprised of Columbia Capital, Telcom Ventures L.L.C., and Madison Dearborn Partners hit the accelerator on the emerging satellite radio market by making a $250 million combined investment commitment in XM. In addition, XM also announced a long-term distribution agreement with General Motors where GM will exclusively distribute and market XM service in their vehicles.
C. Thomas Faulders III, LCC's newly appointed Chairman, President and CEO said, "We have been working hard on making XM's unique radio service a reality. This extension, on the heels of XM's blockbuster financing and strategic alliance announcement, gives us an opportunity to further bridge the gap between a network's design and its actual implementation and operation. We believe XM's is now positioned to build a terrestrial network that will be second to none in terms of quality and footprint."
Commenting on the new interim contract extension, Faulders commented, "We have been aggressively ramping up our professional services organization in order to meet XM's increasing needs and are eager to continue in this mode as we work toward finalizing definitive agreements."
Hugh Panero, XM's president and chief executive officer, said, "LCC has proven itself to be a valuable partner during the initial planning stage of XM's design and deployment. The extension of our interim service agreement was a natural decision given the effort and dedication the LCC team has shown over the past several months. We look forward to a long-term relationship with LCC as we move closer to bringing XM to a commercial reality."
Statements included in this news release which are not historical in nature are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 including, without limitation, statements regarding the ability to obtain financing, the hiring of new personnel, the Company's ability to secure new business, and those factors highlighted in LCC International, Inc.'s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, which could cause the Company's actual results to materially differ from forward-looking statements made by the Company.
LCC International, Inc., (www.lcc.com) one of the world's largest wireless consulting firms, has been serving the telecommunications industry since 1983. The Company is engaged in three primary areas of business: RF Engineering & Network Deployment services, Tower Ownership & Management, and Planning & Optimization software and Field Measurement products.
XM Satellite Radio (www.xmradio.com) is committed to becoming America's "next band of radio" by delivering up to 100 channels of digital audio service with crystal-clear sound from coast to coast. For less than $10 a month, subscribers will receive the best, most compelling mix of digital-quality music, talk, news, sports and entertainment formats available. XM Satellite Radio Inc. is owned by American Mobile Satellite Corporation (NASDAQ:SKYC). The company obtained one of only two satellite digital audio radio service (SDARS) licenses from the Federal Communications Commission in October 1997. First there was AM, then FM and now XM, the next generation of radio.