Integral Systems
Europe, a wholly owned subsidiary of Integral Systems, Inc. ,
today announces that Milan, Italy-based Carlo Gavazzi Space, has awarded
Integral a contract to provide the satellite ground system for the SAR-Lupe
constellation of five low earth orbiting (LEO) satellites. The SAR-Lupe
satellites and ground system will be built and operated by OHB-Systems (OHB)
of Bremen, Germany.

The SAR-Lupe system components provided by Integral under this contract
include the primary and backup satellite control system, key elements of the
satellite Electrical Ground Support Equipment (EGSE) used to support the
integration and to test the satellites and a dual S-band/X-band ground station
to be installed in Germany. The backup system, located at the German Space
Agency’s DLR/GSOC facility, will also be used during the LEOP (Launch and
Early Orbit Phase) for each satellite.

The system will be based upon Integral Systems’ EPOCH 2000 product line of
COTS (Commercial Off-The-Shelf) command and control software used extensively
in both the satellite operations and test environments worldwide and built in
close cooperation between Integral Systems Europe and Carlo Gavazzi Space
(CGS). Integral Systems is also building the antenna and RF systems for this
contract.

“We are extremely pleased by this new contract in Europe. This contract
demonstrates the ability of both Integral Systems Europe and the EPOCH 2000
product line to continue to provide a highly cost effective and comprehensive
ground system solution to the satellite industry,” explained Bruno Dupas,
President of Integral Systems Europe SAS. “This contract continues our
expansion into European markets and shows our willingness and ability to work
as partners with local aerospace firms worldwide. We look forward to working
with our new partner, Carlo Gavazzi Space, and playing a significant part in
the overall success of the SAR-Lupe mission.”

“We are pleased to work with Integral Systems Europe as their satellite
control system, jointly customized by Integral and CGS, will meet the
challenging requirements of SAR-Lupe,” says Mr. Zucconi, managing Director of
Carlo Gavazzi Space. “CGS is entering the ground segment market to complement
its capabilities in the space segment and to be able to provide turn-key
solutions to our customers.”

Integral Systems also has supplied satellite ground systems to EUMETSAT,
the National Aeronautics and Space Administration (NASA), the National Oceanic
and Atmospheric Administration (NOAA), the U.S. Air Force, the U.S. Navy, the
Johns Hopkins University Applied Physics Laboratory (JHU/APL), Loral Skynet,
Newskies Satellites, Echostar, Sirius Satellite Radio, Binariang Satellite
Systems, Shin Satellite Public Company Ltd., GE Americom, Optus, ChinaSat,
EOSAT, Alcatel, TRW, the Republic of China (ROCSAT), and Orbital Sciences,
among others.

About Carlo Gavazzi Space:

Founded in 1981, Carlo Gavazzi Space (CGS) is one of the largest companies
for space systems in Italy and has developed several satellite missions for
science, telecommunication, earth observation, and technology demonstration.
Its mission is to lower the cost of first class science and application
missions exploiting the potential of small satellites.

The company is part of the industrial team developing the SAR-Lupe
constellation for the German Ministry of Defense with full responsibility on
avionic and the satellite control center. Carlo Gavazzi Space is one of the
Italian Space Agency’s (ASI) main providers of standard platforms for
scientific and application satellites. CGS is involved in the development of
ESA scientific missions and the realization of small satellites for the
commercial market. CGS commercial success is due to its highly skilled staff,
innovative technologies and low cost solutions giving customers easy access to
space.

Carlo Gavazzi Space operates also in other fields of space activities such
as the realization of facilities for the International Space Station,
scientific payloads and software projects for earth observation applications.

The company has 180 employees, mainly working at the Milan headquarters
and other offices in Italy in Bologna, Rivalta Scrivia (Alessandria),
S. Giorgio del Sannio (Benevento) and is part of a cluster of European
enterprises located in Germany, France and Italy.

For more information, visit http://www.cgspace.it

About Integral Systems:

Founded in 1982, Integral Systems is a leading provider of satellite
ground systems and has supported over 190 different satellite missions for
communications, science, meteorological and earth resource applications. The
Company was the first to offer an integrated suite of COTS (Commercial Off-
the-Shelf) software products for satellite command and control, the EPOCH 2000
product line. EPOCH has become a world market leader in commercial
applications with successful installations on five continents. The Company
also offers products and services for satellite integration and test and
payload data processing.

Through its wholly owned subsidiary, SAT Corporation, the Company provides
satellite and terrestrial communications signal monitoring systems to
satellite operators and users throughout the world. The Company also provides
software for equipment monitoring and control to satellite operators and
telecommunications firms through its Newpoint Technologies, Inc., subsidiary.
The Company’s RT Logic subsidiary builds telemetry processing systems for
military applications, including tracking stations, control centers, and range
operations. Integral Systems has approximately 350 employees working at
Company headquarters in Lanham, Maryland, and at other locations in the U.S.
and Europe. For more information, visit http: //www.integ.com.

Except for statements of historical facts, this news release contains
forward-looking statements about the Company. Such statements are subject to
risks and uncertainties, including the Company’s reliance on contracts and
subcontracts funded by the U.S. Government, intense competition in the ground
systems industry, the competitive bidding process to which the Company’s
government and commercial contracts are subject, the Company’s dependence on
the satellite industry for most of its revenues, rapid technological changes
in the satellite industry, the Company’s acquisition strategy, and those other
risks noted in the Company’s SEC filings. The Company assumes no obligation
to update or revise any forward-looking statements appearing in this news
release.