Integral Systems, Inc. today announced a contract with PanAmSat Corporation to expand their existing EPOCH IPS satellite control system to take over operations of their two Space Systems/Loral (SS/L) FS1300 satellites (PAS 7&8) and for the operations of their new SS/L FS1300 Omega bus satellite (G16). This contract is another step in PanAmSat’s program to improve efficiency by consolidating satellite operations onto a single EPOCH IPS satellite control system. By doing so, PanAmSat will reduce their recurring long-term operations and maintenance costs, and future procurement costs.

PanAmSat currently uses Integral Systems’ EPOCH IPS to operate their Orbital Starbus satellites and Integral Systems is under contract to replace PanAmSat’s satellite control system used to operate their three Boeing 702 satellites. PanAmSat, one of the world’s largest and most experienced commercial satellite operators, made their selection of Integral’s EPOCH IPS system after an extensive evaluation and analysis of systems available in the marketplace and their direct operational experience with the EPOCH IPS product line.

EPOCH IPS is the only COTS (commercial-off the shelf) satellite control system with a proven capability to operate diverse fleets of satellites (satellites from different satellite manufacturers in the same fleet) from a single satellite control system. Integral Systems is the only company that provides systems that operate satellites from every major commercial geosynchronous communications satellite manufacturer in the world, including Alcatel, Astrium, Boeing, Lockheed Martin, Orbital and Space Systems/Loral.

“We are extremely pleased to continue to expand our relationship with PanAmSat,” said Stuart Daughtridge, Executive Vice President of the Commercial Division at Integral Systems. “PanAmSat is one of the world’s leading satellite operations companies. They have used systems from almost all of the major satellite ground system suppliers, so we are excited to have earned their repeat business,” he added.

“PanAmSat is excited to be continuing on with the next phase of its ground control system evolution,” states Bridget Neville, SVP of Engineering and Operations. “The satellite control products from Integral will provide us the tools we need to continue to be the most efficient satellite operator in the world, benefiting our customers as well as ourselves.”

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

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 IPS product line. EPOCH has become a world market leader in commercial applications with successful installations on 5 continents. The company also offers products and services for satellite integration and test and payload data processing as well as full motion tracking antennas.

The Company’s subsidiary, SAT Corporation, provides satellite and terrestrial communications signal monitoring systems to satellite operators and users throughout the world. Through its Newpoint Technologies, Inc. subsidiary, the Company also provides software for equipment monitoring and control to satellite operators and telecommunications firms. 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 380 employees working at Company headquarters in Lanham, Maryland, and at other locations in both the U.S. and Europe.

Except for statements of historical facts, this news release may contain forward-looking statements about the Company. The forward-looking statements appearing in this news release are subject to risks and uncertainties that may cause actual results to differ materially from such statements, 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.