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Space Data Corporation Awarded Contract To Participate in Joint War Fighting Program

Chandler, AZ; September 26, 2005—The United States Air Force has awarded Space Data Corporation a $1.4 million contract to participate in the 2006 Joint Expeditionary Force Experiment (JEFX)--a land, sea, and air event that tests the latest war fighting technologies. JEFX events are held every two years by the U.S. military.

In March, the Air Force Space BattleLab conducted a series of successful demonstrations using Space Data's technology. Ground-to-ground communications using the same type of radios carried by troops in Iraq and Afghanistan extended the range from 10 miles to 400 miles. Likewise, the Space Data technology significantly improved direct communications between troops on the ground and pilots flying air support.

Space Data's commercial communication network platform called a SkySite(tm) system has been deployed across the south-central United States for the past year serving the energy industry. The Air Force dubbed the network of balloon-borne platforms flying 20 miles above the earth as SkySat. "We see our advantage as being an off-the-shelf technology for the military," said Gerald Knoblach, Chairman and CEO of Space Data Corporation. "It's been extensively tested and is the only 'near space' platform now in full
commercial operation."

The Combat SkySat repeater system represents a low-cost and effective means of extending the range of tactical communications. The demonstration effort with the Air Force BattleLab proved the effectiveness of this near space communications platform. The JEFX contract represents a natural follow-on that will increase the system's ability to meet the particular needs of the warfighter in the field.

The Combat SkySat project is part of the BattleLab's "Near Space"
initiative--focusing on the area between 65,000 and 300,000 feet above the earth. This altitude is virtually unused currently--higher than planes fly, but below satellites. It is also an altitude that is above weather and most weapons systems. Space Data's balloon platforms demonstrate that communications devices working in Near Space to provide clear, reliable communication using mainly inexpensive, off-the-shelf radio technology.

For additional information on the Space Data Corporation, please visit http://www.spacedata.net

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