Globecomm Awarded Ka-Band Infrastructure Contract by Hughes Valued at $18.0 Million; Options Bring Potential Total Contract Value up to $24.0 Million

Globecomm Systems Inc. announced that the Company has been awarded a Ka-band infrastructure contract from Hughes Network Systems, LLC (Hughes), the global leader in broadband satellite networks and services, valued at $18.0 million. The agreement includes options, which if exercised would bring the total contract value up to $24.0 million over 5 years.

Under the terms of the contract, Globecomm will design, install, and test multiple Ka-band earth stations within the U.S., as part of the nation’s leading broadband satellite service infrastructure owned and operated by Hughes. Employing Globecomm’s earth stations will enable Hughes to deliver very high-speed communications services to potentially 1.5 million or more customer terminals operating over its next generation Jupiter™ satellite system, scheduled for launch in early 2012. The turnkey contract scope includes monitoring and control software for all subsystems, allowing remote monitoring and control from distant operational centers, and life cycle support.

David Hershberg, Chairman and CEO, said, "This significant contract with Hughes, the broadband satellite market leader, is a very important contract win for the Company on multiple fronts. As evidenced by this contract and other recent announcements, the Company’s infrastructure segment is poised for growth, which is very exciting, as it has been significantly impaired over the past two years by the economic recession. From a technology perspective, the Company is well positioned to meet the engineering challenges, as we have been investing heavily in Ka-band R&D for the ground segment requirements needed to support numerous launches of Ka-band satellites anticipated over the next few years. It follows multiple other Ka-band infrastructure contracts Globecomm has announced over the past twelve months, and we believe we are uniquely qualified to compete for additional opportunities as they come due."