Globecomm System Announces Exercise of $5.5 Million Contract Option By The U.S. Army for the Continued Production of the Joint IP Modem

April 21, 2008

Globecomm Systems Inc. announced that the U.S. Army has exercised a $5.5 million contract option for the continued production of the Joint IP Modem (JIPM).

On November 12, 2007, the Company announced that it had been awarded a contract from the U.S. Army's Communications -- Electronic Life Cycle Management Command under the Program Executive Office Enterprise Information Systems (PEO EIS) Project Manager Defense Communications and Army Transmission Systems' (PM DCATS) World Wide Satellite Systems (WWSS) Program to provide the JIPM. The contract was valued at $9.9 million and included multiple options that if fully exercised over the next three years would value the contract at $87 million. The exercise of this option now brings the base contract to $15.4 million, with $71.6 million of options remaining over the next 32 months.

Pursuant to the contract, the JIPM network-centric IP modem will be the DoD standard network IP modem for use on military and commercial satellites. The goal of the JIPM effort is to leverage commercial technology to the maximum extent possible, while providing an open standard based approach, which can form the basis of interoperability for military users.

The JIPM network-centric IP modem will provide demand-based satellite communication transport services to the warfighter. The Defense Information Systems Agency (DISA) Program Executive Office for SATCOM, Teleport, and Services manages the JIPM initiative. DISA will field the Joint IP SATCOM Modem in the DoD Teleport Generation 2 rollout.