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Stratos Announces 2008 Year-End Results

BETHESDA, MD (February 24, 2009) - Stratos Global Corporation, the world's trusted leader in delivering vital voice, data and IP communication services today announced financial results for the year ended December 31, 2008.

Financial Highlights
(in millions of U.S. dollars, except per share amounts)

Year ended December 31

 

2008

2007

Revenue

$ 639.0

$ 594.3

EBITDA*

$ 116.5

$ 104.5

Net earnings

$ 20.9

$ 2.0

Basic and diluted
earnings per share

$ 0.50

$ 0.05

* EBITDA (a non-GAAP measure) is defined by the Corporation as earnings before interest expense, income taxes, other (income) costs, management long-term incentive expense, depreciation and amortization, non-controlling interest and equity in earnings of investee.

The audited consolidated financial statements and management's discussion and analysis of financial condition and results of operation are available on SEDAR, www.sedar.com and the Corporation's website, www.stratosglobal.com.

For the year ended December 31, 2008, the Corporation achieved revenue of US$639.0 million, an 8 percent increase compared with US$594.3 million in 2007. The increased revenue resulted primarily from increased Inmarsat leasing and aeronautical revenue, increased sales of mobile terminals and equipment and increased Iridium handheld revenues in the Mobile Satellite Services ("MSS") segment, partially offset by a decrease in revenues in the Broadband segment. EBITDA for year ended December 31, 2008 increased by 11 percent to US$116.5 million compared with US$104.5 million for 2007. The significant improvement in EBITDA for the year ended December 31, 2008 was driven by the increased MSS revenue and cost reductions resulting from the network integration and other initiatives to reduce costs and improve operating efficiencies.

Net earnings for the year ended December 31 2008 were US$20.9 million, or US$0.50 per share, compared with net earnings of US$2.0 million, or US$0.05 per share in 2007. The results for 2007 were negatively impacted by US$16.7 million, or US$0.40 per share, of after-tax financial advisory, legal, and other costs related to the transaction with CIP Canada, which were partially offset by an after-tax gain of US$3.8 million, or US$0.09 per share, related to an hurricane insurance settlement.

Cash flow from operations (including working capital changes) in 2008 totaled US$78.0 million compared with US$57.3 million generated in 2007. The improvement primarily reflects the higher net earnings.

About Stratos
Stratos is the world's trusted leader for vital communications. Stratos offers the most powerful and extensive portfolio of remote communications solutions including mobile and fixed satellite and microwave services. More than 20,000 customers use Stratos products and industry-leading value-added services to optimize communications performance. Stratos serves U.S. and international government, military, first responder, NGO, oil and gas, industrial, maritime, aeronautical, enterprise, and media users on seven continents and across the world's oceans. Stratos is a wholly-owned subsidiary of Inmarsat plc. For more information, visit www.stratosglobal.com.

Caution Concerning Forward-Looking Statements
Documents related to this release contain statements and information about potential future circumstances and developments. Such statements and information are qualified by the inherent risks and uncertainties surrounding future expectations generally and may differ materially from Stratos Global Corporation's actual future results. For additional information with respect to these risks and uncertainties, reference should be made to the Corporation's continuous disclosure materials filed with the Canadian Securities Administrators. Stratos Global Corporation disclaims any intention or obligation to update or revise any forward-looking statements or information, whether as a result of new information, future events, or otherwise.


For additional information :
Paula McDonald, FCA
Executive Vice President and Chief Financial Officer
709.724.5227
paula.mcdonald@stratosglobal.com



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