In response to several
inquiries and considerable press speculation, Jim Maser, president of the Sea
Launch Company, LLC, today reiterated the company’s confidence in using the
Block DM-SL upper stage as part of the successful Sea Launch system.

“Sea Launch is concerned about the broader implications of the recent
Proton failure to the aerospace satellite and insurance markets,” Maser said.
“However, speculations regarding Sea Launch switching from our proven Block
DM-SL upper stage are completely inaccurate. Sea Launch stands behind the
highly reliable RSC Energia-built Block DM-SL, which has a 100% success rate
on the Zenit-3SL since 1999.

“In fact, the Block DM family is one of the most proven and reliable
stages in history, with a demonstrated success rate of 97% in 218 flights
since 1974. It has a consecutive string of 43 successful missions over the
last five years. Sea Launch customers and partners are completely confident
that appropriate corrective actions will be implemented and that another long
string of successes will follow.”

Sea Launch uses a Block DM-SL upper stage on its Zenit-3SL vehicle. The
Block DM-SL is a derivative of the Block DM-3, which is used with the Proton
vehicle. As a result of an apparent anomaly in the operation of the
Block DM-3 during the Astra-1 mission last week, that spacecraft failed to
reach orbit.

“We are monitoring the investigation of the failed Astra-1 mission as it
progresses, within the bounds of Export Compliance,” Maser said. “We are
confident the investigation team will determine the root cause and implement
necessary corrective actions in a timely manner.”

Sea Launch Company, LLC, based in Long Beach, Calif., provides reliable,
cost-effective, heavy lift launch services for commercial satellite customers.
The Sea Launch partners include Boeing, RSC Energia, SDO Yuzhnoye/PO Yuzhmash
and the Kvaerner Group. Established in 1995, Sea Launch has a current backlog
of 17 firm launch contracts. As the world’s only services provider launching
from the Equator, Sea Launch offers the optimal starting point for spacecraft
heading to Geostationary Orbit. For additional information, visit the Sea
Launch web site at: www.sea-launch.com