Orbital Sciences
Corporation today announced preliminary estimated financial
results for the second quarter of 2003, as well as a planned refinancing that
the company is pursuing. Based on preliminary estimated information, Orbital
stated that it expects to report second quarter revenues of $152 to $157
million, operating income between $1.0 and $2.5 million, and a net loss in the
range of $3.5 to $5.0 million. Orbital stated that its free cash flow* is
forecast to be approximately $12 to $15 million for the second quarter.
Orbital further stated that the expected net loss for the quarter is primarily
due to an operating loss at the company’s electronic systems segment and
expected charges related to Orbital’s settlement with Orbital Imaging
Corporation (ORBIMAGE).

Core Business Second Quarter Outlook

The company’s core business segments, consisting of its launch vehicles
and advanced programs segment and its satellites and related space systems
segment, are preliminarily estimated to generate combined second quarter
revenues of $146 to $150 million and combined operating income of $9.5 to
$10.5 million. These estimated second quarter results reflect continuing
strong revenue growth in the company’s launch vehicles and missile defense
interceptors product lines as compared to both the first quarter of 2003 and
the second quarter of 2002, as well as significant growth in its satellite-
related revenues.

Non-Core Business Second Quarter Outlook

Orbital’s second quarter results are expected to be negatively impacted by
weaker than expected performance by the company’s electronic systems segment,
which provides transportation management systems (TMS) primarily for public
transit agencies. The company expects that the electronic systems segment
will report a second quarter operating loss in the range of $4.5 to $5.0
million. This quarterly loss is primarily the result of adjustments to the
estimated costs to complete several TMS contracts due to extended time to
develop and test related software.

ORBIMAGE Update

As announced earlier this year, Orbital will incur a $2.5 million charge
related to a settlement agreement with ORBIMAGE upon the launch of the
OrbView-3 satellite. The OrbView-3 launch is currently scheduled to occur
later this month and, accordingly, the above-mentioned estimated second
quarter results include this $2.5 million charge against operating income.
Estimated second quarter results also include an additional $1.0 million
settlement charge related to the delay in the launch and on-orbit checkout of
the OrbView-3 satellite.

Estimated Segment Results

Second quarter preliminary results by segment, excluding the above-
mentioned $3.5 million of charges related to the ORBIMAGE settlement, are
estimated to be as follows ($ millions): 

                                           Revenues        Operating Income

    Launch Vehicles & Advanced             $82 - 84           $8.1 - 8.6
     Programs

    Satellites & Related Space Systems     $64 - 66           $1.4 - 1.9

    Electronic Systems                      $7 - 8          $(5.0) - (4.5)

Full-Year Guidance Update

Orbital reaffirmed previous guidance with respect to full-year 2003
revenues in the range of $560 to $580 million. The company continues to
expect a full-year operating income margin in the range of 6 to 7% of revenue;
however, the company currently expects the margin to be in the lower end of
the range. Orbital also announced that it is increasing its full-year free
cash flow* guidance by $5 million to a range of $25 to $35 million, and
continues to forecast year-end 2003 firm backlog in the range of $900 to $950
million.

Planned Refinancing

Orbital also announced that, subject to market conditions, it is preparing
to commence refinancing of its outstanding $135 million of 12% Second Priority
Secured Notes that were issued in 2002. It is anticipated that such
refinancing would entail a cash tender offer and consent solicitation for the
12% notes, a new debt financing and a replacement of the current Foothill
Capital Corporation credit facility with a new revolving line of credit with
Bank of America.

Operational Update

The company has conducted five successful space missions since early
April, consisting of three satellite deployments and two rocket launches,
bringing its year-to-date mission record to eight successes in eight attempts.
As noted above, Orbital expects to launch the company-built OrbView-3
satellite on a Pegasus rocket before the end of June. In addition, the
company plans to deliver or launch three more satellites and rockets in July
and August.

Disclosure of Non-GAAP Measures

The following definition is provided for non-GAAP (Generally Accepted
Accounting Principles) measures (indicated by an asterisk*) used by the
company with this disclosure. Orbital does not intend for the information to
be considered in isolation or as a substitute for the related GAAP measures.
Other companies may define the measures differently.

Free cash flow is defined as GAAP net cash provided by operating
activities less capital expenditures for property, plant and equipment.
Management believes free cash flow provides investors with an important
perspective on the company’s ability to finance its operations and to service
its debt. The company’s free cash flow forecasts discussed above include cash
provided by operating activities less forecasted capital expenditures of $2.7
million and $14.5 million for the second quarter and full year, respectively.

Conference Call and Audiocast Information

Orbital will conduct a conference call with financial analysts and
investors on Friday, June 20, beginning at 8:30 a.m. (EDT). The conference
call will be hosted by: 

    *  Mr. David W. Thompson, Chairman and Chief Executive Officer; and
    *  Mr. Garrett E. Pierce, Vice Chairman and Chief Financial Officer

To listen to the conference call, dial 888-541-8767, and use the
conference ID number 1412677. A replay of the conference call will be
available approximately two hours after the end of the call and will remain
active for one week, until Friday, June 27. For access to the replay of the
conference call, dial 800-642-1687 (international callers should dial
706-645-9291) and use the same conference ID number.

The audio of the conference call will also be broadcast over the Internet.
For audiocast registration and information, please visit Orbital’s web site at
http://www.orbital.com/Investor. It is advisable to register at least 20
minutes prior to the call to download and install any necessary audio
software. A transcript of the conference call will be posted on the “For
Investors” section of Orbital’s web site within 48 hours.

About Orbital

Orbital develops and manufactures small space and missile systems for
commercial, civil government and military customers. The company’s primary
products are satellites and launch vehicles, including low-orbit,
geostationary and planetary spacecraft for communications, remote sensing and
scientific missions; ground- and air-launched rockets that deliver satellites
into orbit; and missile defense boosters that are used as interceptor and
target vehicles. Orbital also offers space-related technical services to
government agencies and develops and builds satellite-based transportation
management systems for public transit agencies and private vehicle fleet
operators.

More information about Orbital can be found at http://www.orbital.com

Note: “Safe Harbor” Statement Under the Private Securities Litigation
Reform Act of 1995.

Some of the statements in this release constitute “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act
of 1995. All statements other than those of historical facts included herein,
including those related to the company’s financial outlook, goals, business
strategy, projected plans and objectives of management for future operations,
new order trends and liquidity are forward-looking statements.

Such “forward-looking statements” involve unknown risks and uncertainties
that may cause the actual results, performance or achievements of the company
to be materially different from any future results, performance or
achievements, expressed or implied by such forward-looking statements.
Factors such as general economic and business conditions, availability of
required capital for Orbital and its affiliates, continued government support
and funding for key space and defense programs, the financial condition of
major customers, product performance, market acceptance of products, services
and technologies, consumer demand, and dependence upon long-term contracts
with commercial and government customers may impact the company’s revenues,
expenses, profit and cash flow from period to period. These factors and
others related to the company’s business are described in further detail in
the company’s SEC filings, including its Form 10-K/A. Orbital assumes no
obligation to update any such forward-looking information.

CONTACT: Barron Beneski, Public and Investor Relations of Orbital
Sciences Corporation, +1-703-406-5528, or beneski.barron@orbital.com.