Chalal Communications is purchasing the satellite from IAI for approximately 200 million dollars

The company plans to enter into a contract with a customer for the provision of services on the Amos-6 satellite in exchange for approximately 95 million dollars; Amos-6 will replace the Amos-2 satellite which is planned to end its commercial service in 2016

Space Communication Company announces this morning that the company's board of directors has authorized the company to complete and sign an agreement with Israel Aerospace Industries, according to which Space Communications will purchase the Amos-6 satellite from Israel Aerospace Industries, in exchange for approximately $200 million. According to the agreement, IAI will produce the Amos-6 satellite for the communications space, which will be launched to a sky position 4 degrees west of where the Amos-2 and Amos-3 satellites are currently operating. IAI prevailed over Space Systems/Loral from Palo Alto, California. As you may remember, the Amos 5 satellite was built by a Russian space company, saving $50 million compared to the IAI proposal, the amount the Russian government subsidized the satellite that provided a living for its space industry personnel

The launch of Amos-6 is planned for the first quarter of 2015 and its lifespan will be at least 16 years. Amos-6 will replace Amos-2 which should end its commercial service in 2016. The power of the new satellite will be double the power of Amos-2 and Amos-3 combined. Amos-6 enhances the point of the sky where the company operates, and will expand the variety and scope of services that the company provides to its customers in the Middle East and Europe. In addition to increasing the currently existing service areas, the satellite will add service areas in Africa for broadband applications in the Ka frequency range.

Even before its construction, Chalal Communications intends to enter into a contract with a customer for the supply of satellite communication services on Amos-6 in exchange for approximately 95 million dollars, of which approximately 20 million dollars will be paid during the period of construction of the satellite, and the balance in payments determined during the period of awarding the services. The start of services for this client will be provided on Amos-2 in 2014, and upon its launch into space, the client will be transferred to Amos-6.

Halal Communications plans to raise the required financing for the Amos-6 project from a consortium of lenders, which includes foreign financing factors that support exports from countries where the project's suppliers are located, as well as the aerospace industry.
In regards to the launch services, Chaval Communication intends to contract with another company that will provide the launch services for the satellite, with IAI committing to carry out the operational aspects of the contract with the launch services provider.
In addition, the company intends to purchase insurance for the launch of the satellite and a one-year stay in orbit. The cost of the launch and insurance, which are not included in the purchase price from IAI, are estimated at approximately 85 million dollars.

About six months ago, Halal Communications launched the Amos-5 satellite, which joined the company's two communications satellites, Amos-2 and Amos-3. The three satellites of Halal Communications provide coverage for some of the most developing markets in the world today, where there is a growing demand for satellite services. These regions include the Middle East, Eastern and Central Europe and the African continent.

David Polak, CEO of Halal Communications said today: "The launch of the Amos-6 satellite is another step in the expansion of Halal Communications." About six months ago, Amos-5 was launched into space, which added a new sky point to the company - 17E°, and through which the company's services were expanded to new coverage areas in Africa. Like Amos-4, whose launch is planned during 2013, which will add sky point 65E° with new coverage areas in Russia and India. Amos-6 significantly strengthens and increases the marketing potential of the 4W° point of the sky, where the company started its activities, among other things due to the doubling of the capacity of Amos-2 and the fact that it is equipped with beams in the KA frequency range, which have modern technology for providing Internet at high rates via satellite."

The Aerospace Industry (TAA) is pleased to announce its selection in an international tender as a supplier for the development and production of the "Amos 6" communication satellite.

The total contract with the space company will amount to about 200 million dollars and it also includes the services of operating the satellite in orbit during its planned life (about 16 years).

"The work on the communication satellite "Amos 6" has already begun in full swing. This is a large contract with a particularly challenging schedule. In "Amos 6, the IAEA implements new technologies that constitute an upgrade and a "leap forward" of the capabilities of the Aerospace Industry and the State of Israel in the field of space," said Yossi Weiss, the designated CEO of the Aerospace Industry.

This morning the Space Communications Company reported approval for the completion of negotiations and engagement with the IAA in the agreement for the purchase of the "Amos 6" satellite.

The tender for "Amos 6" was published for the first time in August 2011 and in addition to the IAA, leading companies from the USA, Europe and Russia participated in it.

Amos 6 is planned to replace the Amos 2 satellite at Sky Point 4 West. The Amos 6 satellite has a capacity and the ability to provide communication services that is significantly greater than the Amos 2 satellite, which is also manufactured in Israel. Against the background of lessons learned from previous satellite development and production and in order to improve the competitiveness of the proposal, the TAA implemented improvements in the development and production processes of communication satellites.

Yossi Weiss, who personally managed the negotiations for the signing of the contract in recent weeks, said that "within the framework of "Amos 6" various components and assemblies will be developed at TEA which will be another step towards achieving independence in the development and production of communication satellites, as TEA currently has in the field of observation satellites . Besides the IAEA, the Israel Space Agency (which is under the Ministry of Science) will also participate in the financing of these activities."

The financing for the satellite will be provided by a consortium of lenders led by foreign financing entities that support exports from countries where key suppliers in the project are located. The TAA will also participate in financing within the framework of this consortium.

In the coming weeks, the negotiations with the space company will be concluded in preparation for a final signature.