Orbital Imaging Corporation
(ORBIMAGE) announced today that it has reached a settlement agreement with
MacDonald Dettwiler & Associates, Ltd. (MDA) of Vancouver, Canada concerning
its remaining marketing rights in the long-delayed Canadian Radarsat-2
satellite program. In exchange for payments totaling $12 million over the
next 2 years, ORBIMAGE agreed to end its dispute and return its limited
licenses in Radarsat-2 back to MDA, the prime contractor for the program.
Furthermore, resolution of its dispute concerning Radarsat-2 now enables
ORBIMAGE to finalize its plan of reorganization and emerge from its Chapter 11
bankruptcy case.

“Our decision to sell our limited marketing rights in the Radarsat-2
program and return them back to MDA serves both organizations well. With the
cash proceeds from the settlement, ORBIMAGE will now focus its efforts solely
on our core business of expanding the worldwide markets for high-resolution
data from our new OrbView-3 satellite, while MDA works to resolve the
continued delays in the Radarsat-2 program,” said Matthew O’Connell,
ORBIMAGE’s Chief Executive Officer.

Under the terms of the settlement agreement, ORBIMAGE will immediately
receive $10 million from MDA, and another $2 million over the next two years.
“Proceeds from this settlement further strengthens ORBIMAGE’s financial
position and allows us to concentrate on bringing our OrbView-3 satellite into
service as soon as possible,” said Armand D. Mancini, ORBIMAGE’s Executive
Vice President and CFO. “This transaction enhances our balance sheet and
long-term viability so we can quickly exit from Chapter 11. We hope to obtain
confirmation of our plan by the end of October, 2003.”

“Progress on the check out and calibration of OrbView-3 continues to go
exceptionally well,” said Timothy J. Puckorius, ORBIMAGE’s Senior Vice
President for Worldwide Marketing and Sales. “We are already mid-way through
Phase-2 of the check out plan, and the early results on image quality look
great. At this rate of progress, we hope to complete all check-out phases by
the end of November and we may start delivering imagery to our key customers
before that date.”


ORBIMAGE is a leading global provider of Earth imagery products and
services, with a constellation of digital remote sensing satellites and a
worldwide integrated image receiving, processing and distribution network.
The company currently operates the OrbView-1 atmospheric imaging satellite
launched in 1995, the OrbView-2 ocean and land multispectral imaging satellite
launched in 1997, and the new OrbView-3 high-resolution satellite launched on
June 26, 2003 which will soon offer one-meter panchromatic and four-meter
multispectral digital imagery on a global basis.

More information about ORBIMAGE and the status of the OrbView-3 check out,
please see our web site at http://www.orbimage.com.