Paradigm reaches agreement with UK MOD on Skynet 5 terms

EADS subsidiary Paradigm Secure Communications (PSC) has reached agreement with the UK MOD over the terms and conditions of the Skynet 5 programme and service provision to MOD commenced on 30th May 2003.

The three banks mandated as lead arrangers have now confirmed credit approval to proceed with the first round of banking support of this project under the Private Finance Initiative which will be implemented immediately by BNP-Paribas. CISC and HSBC.

The Skynet 5 programme entails PSC delivering secure global military satellite communications to the UK armed forces in the form of a service provision contract worth approximately £2 billion over two decades.

Paradigm Secure Communications was selected as preferred bidder for the UK MOD's Skynet 5 military satellite communications service in Spring 2002. The Paradigm team, led by Paradigm Secure Communications, was formed by Astrium in 1999.

For Skynet 5, Paradigm Secure Communications will contract with Paradigm Services for full service delivery and Astrium for the Skynet 5 satellites and ground systems. Progress is currently being made towards contract award, at which point, both Paradigm companies wilt be wholly owned subsidiaries of the European Aeronautic Defence and Space company, EADS, whicho has supported Paradigm throughout the Skynet 5 bidding process.

Urder Skynet 5. Paradigm will deliver a secure global satellite communications service over a 15 year contract period. The programme will provide a range of services, including global mobile voice communications, video conferencing, multimedia-based communications and broadcast communications. Paradigm will initially deliver services by taking over operation of the existing Skynet 4 infrastructure from the MOD, and then by adding new Skynet 5 ground segment upgrades and satellites

The UK's armed forces will all use Skynet 5 Services, whilst government departments and other agencies that require secure satellite communications will also have access to these services. In order to reap the benefits of the Private Finance Initiative (PFI) approach. Paradigm's services will also be available to approved defence and other governmental users from overseas countries and multinational organisations.

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