Inmarsat plc Reports Preliminary Full Year Results 2005

Inmarsat plc, the leading provider of global mobile satellite communications services, today reported unaudited consolidated financial results for the year ended 31 December 2005.

2005 Highlights

• MSS revenue up 3% to $472.5 million (2004: $458.9 million)

• EBITDA up 5% to $317.1 million (2004: $301.7 million)

• Inmarsat-4 satellite deployment completed with two successful launches

• Start of commercial BGAN services in December 2005

• Successful IPO and capital structure changes implemented

• Final dividend proposed of 10.95 cents (US$) per share

Andrew Sukawaty, Inmarsat’s Chairman and Chief Executive Officer said, “It was a strong finish to a transformational year.We are pleased with our solid financial performance and significant operational achievements in 2005.With the successful launch of two Inmarsat-4 satellites we have added significant life and new capacity to our network and enabled the introduction of BGAN services (Broadband Global Area Network), a global DSL-like offering.With these steps now behind us we are entering 2006 with confidence and believe strongly in the diverse growth opportunities for our business.”

* Includes revenue contribution from subsidiaries disposed of during the year.  These subsidiaries contributed a full year of revenue in 2004.

Mobile Satellite Services (MSS)

The maritime sector was the main driver of our revenue performance in 2005, growing 6% compared with 2004.Continued strong take up of Fleet services contributed to growth of almost 13% in maritime data revenues, while our mini-M and Inmarsat-B maritime services also performed well during the year.Although growth in maritime data revenues was partially offset by lower maritime voice revenues, we have made good progress in that the rate of decline in our maritime voice business continued to slow as the impact of analogue to digital migration reduced and the success of off-peak promotions generated overall voice traffic growth during the year.

Our land sector revenues were impacted by a number of factors and these contributed to a fall of 9% compared to 2004.Land data revenues decreased by 7% primarily due to a reduction in activity from government and military users in the Middle East and the impact of reduced pricing for our R-BGAN service designed to stimulate demand in certain areas.During the second half of 2005 we saw traffic from the Middle East stabilise and traffic growth for our R-BGAN service improve in response to our pricing initiatives.Continued competition for voice business from MSS handheld operators contributed to a lower year over year revenue performance.We are actively pursuing entry into the handheld market with our own service.

Our aeronautical sector revenue continued to grow rapidly primarily as a result of increased use of our Swift64 service.Aeronautical revenues grew by 34% over the prior year.Installations of Swift64 terminals during the first half of the year contributed to continued revenue growth in the second half of 2005.Our leasing revenues were up 7% on 2004.A 5-year agreement with the Japanese Civil Aviation Authority in the first half, as well as some short term demand during the second half as a result of Hurricane Katrina and the earthquake in Pakistan contributed to this performance.

At the end of the year our total net external debt stood at $852 million, including $250.0 million of bank debt and overdraft, $336.6 million of Senior Discount Notes and $300.4 million of Senior Notes, offset by $35.3 million of cash and short-term investments.  We also had an available but undrawn credit facility of $300.0 million.

Rick Medlock, Chief Financial Officer, commented “2005 was a year of transition in our business as we laid the foundations for future growth through our satellite deployments and the launch of BGAN.Through our IPO we have completed the final step in our development from an intergovernmental organisation to a fully-fledged commercial operator.We have achieved these significant milestones while making solid progress in our financial performance. ”

Inmarsat-4 Programme

In November 2005 we successfully launched the second of our Inmarsat-4 satellites.Following deployment and testing, the second satellite was brought into commercial service in January 2006.The launch of the second Inmarsat-4 satellite completes the planned deployment of two Inmarsat-4 satellites.The first Inmarsat-4 satellite was launched in March 2005 and brought into commercial service in May 2005.We have built a third Inmarsat-4 satellite which is now fully complete and tested.This satellite is currently being kept in storage as a ground spare.The overall capital cost of the Inmarsat-4 and BGAN programme is not expected to exceed our $1.5 billion forecast.

IPO

In June 2005 we successfully completed an initial public offering of ordinary shares on the London Stock Exchange.We raised over $645 million of net primary proceeds and used these funds, together with cash on hand, to reduce our debt by $654 million.These debt reductions and the terms of a new senior credit facility will significantly reduce our interest expense in future periods.

Outlook

We believe our core business is performing well and is positioned for growth.Our outlook for 2006 is positive.While we expect voice revenues to remain under pressure, particularly in our land sector, we believe the trends in our voice business can contribute to further stabilisation of these revenues in 2006.We expect the drivers of growth in our maritime data and aeronautical sectors to continue in 2006, although at a reduced rate of growth when compared to 2005.While early feedback on our new BGAN services has been strongly positive, we expect take up of these services to build gradually through 2006.Our leasing business has been subject to fluctuations in 2005 from short-term leasing demand and we expect this to continue in 2006.We expect our operating costs to increase in line with the need to operate and insure the satellites of our Inmarsat-4 network.In addition, where the needs of the business are changing following the completion of the Inmarsat-4 programme, we expect to make appropriate adjustments to our cost base.We expect our cash capital expenditures for our Inmarsat-4 programme to be in the region of $150 million in 2006.

2005 Results for Inmarsat Holdings Limited and Inmarsat Group Limited

Inmarsat Holdings Limited, through its subsidiary Inmarsat Finance II plc, is the issuer of $450 million of 10.375% Senior Discount Notes due 2012.Inmarsat Group Limited, through its subsidiary Inmarsat Finance plc, is the issuer of $310.4 million of 7.625% Senior Notes due 2012.Inmarsat Holdings Limited and Inmarsat Group Limited will report full year 2005 results on Form 20-F and expect to file these reports with the SEC on or around 28 April 2006.Furthermore, both Inmarsat Holdings and Inmarsat Group expect to notify the Trustee of a change in accounting standard from UK GAAP to IFRS (International Financial Reporting Standards).

To assist analysts and investors in their understanding of the results, the following unaudited financial tables are provided for Inmarsat Holdings Limited, prepared in accordance with UK GAAP.

These results will be incorporated into the results reported on Form 20-F under IFRS together with a reconciliation to US GAAP.

Other Information

A webcast recording of the analyst presentation to be held on 9 March at 9:00am will be posted to our website after the event.  To access the webcast please go to: www.inmarsat.com/investor_relations/.

Inmarsat management will also host a conference call on Thursday, 9 March at 3:00pm London time (United States 10:00am EST).To access the call please dial +44 20 8609 0238 and enter the access code 916960#.A recording of the call will be available for one week.To access the recording please dial +44 20 8609 0289 and enter the conference reference 138873.

Forward-looking Statements

Certain statements in this announcement constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.These forward-looking statements involve risks, uncertainties and other factors that may cause our actual results, performance or achievements, or industry results, to be materially different from those projected in the forward-looking statements.These factors include: general economic and business conditions; changes in technology; timing or delay in signing, commencement, implementation and performance of programmes, or the delivery of products or services under them; structural change in the satellite industry; relationships with customers; competition; and ability to attract personnel.You are cautioned not to rely on these forward-looking statements, which speak only as of the date of this announcement.We undertake no obligation to update or revise any forward-looking statement to reflect any change in our expectations or any change in events, conditions or circumstances.