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PARADIGM SIGNS 2 YEAR EXTENSION TO SKYNET 5 CONTRACT * Skynet 5 PFI service contract extension for military communications provides increased value for money to UK MoD * Paradigm will procure a third spacecraft (Skynet 5C) from EADS Astrium* This confirms Defence as a key growing market for EADS SPACE Paradigm Secure Communications Ltd, a subsidiary of EADS SPACE Services, has today signed an amendment with the UK MoD to extend the 15 year Skynet 5 PFI service contract for military communications. The extension will provide the UK MoD with increased value for money through increased assurance and extended capability. A key feature of the extension is that Paradigm will order construction and launch of a third satellite, Skynet 5C, to be manufactured by EADS Astrium. There is no cost increase to the MoD when comparing the common 15-year baseline periods of the old and the new deals. Savings from insurance costs and a cutting edge refinancing scheme are at the heart of the approach. A three-satellite constellation means better performance, more efficiency, longer services availability, with a concession period extended from 2018 to 2020. Paradigm is also ordering the partial build of a fourth satellite, to be held in reserve. If required, in order to maintain the assurance strategy of having three satellites in orbit, the fourth satellite would be completed and launched in the event that any of the first three satellites were not successfully commissioned after launch. This new agreement will also provide the potential for other customers to benefit from increased coverage and capacity. Achieving the extension of the groundbreaking PFI service contract was facilitated by the true partnership approach built within the Skynet 5 ‘Enterprise’. This is the result of the creation of efficient working relationships and high levels of cooperation between MoD and industry teams. The successful extension of the contract confirms EADS SPACE Services expertise in structuring and managing complex commercial and financial service agreements. Skynet 5A is scheduled for launch in the second half of 2006 with 5B in 2007 and 5C in 2008. EADS Astrium has selected Arianespace for the first two launches. Malcolm Peto, Managing Director of Paradigm Secure Communications said: “This extension takes the groundbreaking Skynet 5 PFI service contract to another level - not only will it provide increased assurance to the UK MoD through reduced risk and provision of a third satellite, but it will also provide greater value for money. This demonstrates our capability in day-to-day management of complex service contracts with innovative engineering commercial and financial structures whilst securing increased benefits for all our customers.” Eric Béranger, CEO of EADS SPACE Services, said: "Innovative thinking in collaboration with the UK MoD and cutting edge financing, has achieved an excellent win-win solution for all parties. This successful extension is a reflection of the expertise of our team, especially in the UK, and demonstrates the benefits of the collaborative approach with the UK MoD. Paradigm and EADS SPACE Services look forward to providing the benefits of military communications services to other countries, building on the successes we have already achieved with NATO and a number of other nations." |
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