ICO Global Communications, the global mobile communications company, announced Thursday the signing of its first contracts for the supply of dual-mode satellite and cellular handsets. In Japan, the orders were placed with Mitsubishi Electric Corp. and NEC Corp. A third manufacturer is expected to be announced shortly. These initial orders will total 270,000 units.

Further contracts will follow from ICO's service partners around

the world. Delivery is targeted for August 2000, the planned start

date for ICO's full commercial service, and ICO's handset supplies are

forecast in excess of 2 million units in 2001.

ICO Chief Executive Officer Olof Lundberg, in Tokyo for the

announcement, welcomed the contracts. "This commitment brings the ICO

service another step closer to reality. We are all delighted with the

quality and design of these high-performance pocket-size handsets."

Hiromi Hayashi, associate senior vice president of NEC Corp.,

said: "As a main contractor for the ICO project, NEC has been working

on supply and implementation of the ground infrastructure systems –

that is, the SANs (Satellite Access Nodes). With this contract for the

ICO hand held user terminals, NEC will further contribute to ICO and

become a complete network supplier to realize this ambitious

cutting-edge global mobile communications service by satellite."

Ritaro Kasai, board member and general manager of the Electronic

Products and System Group of Mitsubishi Electric Corp., said: "We are

very pleased to be a part of this exciting new opportunity. We are

confident that the mobility provided by our smaller sized terminals

will appeal to many people untargeted in the past by existing products

available in the market."

The ICO units resemble typical GSM terminals with the addition of

a satellite-capable antenna. They will communicate with ICO satellites

at an orbit of 10,390 kilometers, with power output averaging just

0.25 watts. Typical volume of the handset models will be 220 cubic

centimeters (13.4 cubic inches ). Typical weight will be 220 grams

(7.76 ounces).

The ICO mobile phones will allow users to make and receive calls

at any time, anywhere in the world. The handsets will be dual mode,

capable of working on satellite, cellular and PCS networks. Using

their handsets, customers will be able to roam between ICO and mobile

networks around the world.

If no cellular network is available, the handset will "roam" to

ICO's satellite network to offer customers unrestricted mobility and

accessibility for their communications needs.

Affordable services will be available to a wide range of users –

from those living and working in remote rural areas to the

international business traveler. In addition ICO will offer services

to the road transport, maritime and aeronautical sectors.