Orbital Sciences
Corporation today announced that it has closed two
financing transactions to replace the company’s existing debt
structure. The new arrangements provide Orbital with lower interest
rates, longer-term maturities, improved terms and increased borrowing

In the first transaction, Orbital issued $135 million of new 9%
Senior Notes due 2011, the net proceeds of which will be used,
together with cash on hand, to repurchase and redeem Orbital’s
existing $135 million 12% of second priority secured notes due 2006.

Orbital also closed a new four-year, $50 million revolving credit
facility with Bank of America serving as the Lead Arranger in the
syndicated line of credit. The Bank of America credit facility
replaces the company’s former $35 million revolving line of credit
with Wells Fargo/Foothill Capital Corporation.

The company estimates that annual interest expense, including
amortization of debt discount and deferred financing costs, will be
reduced by over 40%, or more than $10 million per year, as a result of
the new debt structure.

“We believe that the placement of lower-cost and longer-term debt
and the establishment of a new credit facility provides Orbital with a
solid financial foundation with greater financial flexibility to
support future growth, profitability and free cash flow,” said Mr.
Garrett E. Pierce, Orbital’s Vice Chairman and Chief Financial

Following the retirement of Orbital’s 12% second priority secured
notes and replacement of the company’s former revolving line of
credit, during the third quarter of 2003 the company expects to record
a debt extinguishment charge of approximately $39 million, including
approximately $32 million of non-cash charges to write off unamortized
debt discount and deferred financing costs.

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

More information about Orbital can be found at

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,
as amended, for the year ended December 31, 2002. Orbital assumes no
obligation to update any such forward-looking information.