NewSat… Pumping Product (SatCom)

[SatNews] A number of contracts have infused the Company with new projects…

NewSat Limited (ASX: NWT; OTC: NWTLY) has a number of new significant contract wins that were signed during May and June. The new business contracts are worth $2.35 million in additional revenue and will provide satellite communication services within Australia and abroad, including Afghanistan, Papua New Guinea and Timor Leste. The recent new business contract wins contributing to the $2.35 million total include:

1. New contract with Proactive Communications to provide satellite communications for U.S. Military troops in Southern Afghanistan
2. New contract with Atlas Iron to provide satellite communications for remote mining sites in Australia
3. New contract with Nixon Communications to provide satellite communications for remote pipeline construction in Australia
4. New contracts with Hitron to provide satellite communications for a diverse range of projects across Papua New Guinea
5. New contract with partner in Timor Leste to provide satellite communications for the US Navy

The $2.35 million total contract value of new contract wins takes NewSat’s new business contract total for the 2011 financial year to $16 million. The new contract wins are on top of NewSat’s existing contract base, which at the end of the 2011 financial year, was $2.5 million in Monthly Recurring Revenue. The annual revenue base is now approximately $30 million per annum and growing monthly. The military portion of NewSat’s business has continued to grow strongly, delivered through NewSat’s U.S. Military accredited teleport in South Australia. With demand for military communications projected to increase, driven by new technologies, unmanned aerial vehicles (UAV) and demand for larger bandwidths, NewSat is favorably placed to continue its consistent growth in this key market.

Marc LeGare, CEO of Proactive Communications, said, “NewSat has been delivering services for us into the Middle East for over two years. Their continued support and quality of service means they are always going to be our first choice. In the past month alone they have brought-up over 10 new services without a hitch and they are by far the best Teleport operator in the world to work alongside. Our customer, the US Military, is incredibly satisfied with NewSat’s service and we look forward to working on more business with them in the future.” Adrian Ballintine, CEO of NewSat, added, “The 2011 financial year finished with another great quarter of sales results, seeing us exceed last year’s results and continue our record growth. NewSat’s focus on military, mining, oil and gas has delivered consistent results, quarter-after-quarter. This year’s new business contract highlights included satellite communications to the U.S. Military in Southern Afghanistan, LNG pipeline construction camps around Australia and the Gorgon Project off Western Australia.”