In addition to our planned MSS/ATC System, we are permitted to operate a MEO satellite system globally in compliance with regulations promulgated by the United Kingdom and the ITU. Under ITU rules, our MEO system is deemed to have been brought into use and therefore is entitled to international recognition and legal protection and interference protection. We are working to put ICO in the best possible position to benefit from its extensive investment in an international MEO satellite system as the regulatory regime which governs our MEO system likely changes in the next year.

We have in orbit one MEO satellite launched in June 2001, referred to as "F2," which currently provides data gathering services for an agency of the U.S. government. Primary satellite control is provided under an agreement with Intelsat Corporation, with a backup satellite control center in Slough, United Kingdom. We are required to have the capability of controlling F2 from the United Kingdom as part of our U.K. authorization. We are currently using two gateway ground stations equipped with five antennas to monitor F2. We also own a facility in Itaborai, Brazil, on which certain gateway equipment for the MEO system is located. In addition, we have ten MEO satellites in storage, most of which are in advanced stages of completion. The MEO satellites, including F2, are a modified Hughes 601 and Hughes 702 design and have a designed in-orbit life of 12 years. The satellites feature active S-band antennas capable of forming up to 490 beams for satellite-user links and C-band hardware for satellite-ground station links.