emerged from Chapter 11 bankruptcy protection following completion of a $1.2 billion investment led by telecommunications pioneer Craig McCaw and a group of US and international investors.

"I congratulate New ICO, its employees and its partners around the world on all the hard work required to facilitate the company's transformation,'' McCaw said.

"We appreciate having the opportunity to learn from the pioneering efforts of others in reconfiguring New ICO for the market.'' New ICO officially emerged from bankruptcy protection yesterday. In related news, ICO-Teledesic Global Limited, a new holding company that controls the satellite assets of McCaw's private investment company Eagle River Investments LLC, intends within the next week to propose to New ICO a merger of the two companies. As a result of New ICO's just-completed reorganization plan, ICO-Teledesic Global is the controlling shareholder in London-based New ICO.

This proposal is subject to approval by the New ICO board and shareholders and regulatory authorities. On May 12, Teledesic's board of directors approved the merger of Bellevue, Washington-based Teledesic into ICO-Teledesic Global, but the merger remains subject to shareholder and regulatory approvals. Under the proposal, New ICO and Teledesic would become wholly owned subsidiaries of ICO-Teledesic Global.

New ICO's founding shareholder and distributor group will be a key asset to the company.

"We're honoured to be on the same team with New ICO's distribution partners,'' McCaw said. "This unrivaled global network of leading telecommunications companies includes many of the strongest distribution partners in all regions of the world.'' McCaw will serve as chairman of ICO-Teledesic Global in addition to his role as chairman of New ICO and founder and chairman of Teledesic LLC. Having successfully completed his goal of guiding ICO through the bankruptcy process, Richard Greco is resigning as chief executive officer of ICO to develop his own telecommunications venture. Russell Daggatt becomes acting CEO of New ICO and ICO-Teledesic Global.

"I am gratified that the efforts of the ICO team, aided by the support and vision of Craig McCaw, have culminated in the rebirth of New ICO,'' Greco said. "With the bankruptcy process behind us, I am happy to leave the company in the hands of a capable team and global partners.'' Daggatt said, "Richard has provided valuable leadership as our teams have worked together to bring about the resurgence of New ICO.'' Wireless Internet Focus Building on the mobile voice capabilities of its existing system design, New ICO will also offer a family of services that are the satellite equivalent of third-generation (3G) wireless services, including wireless Internet and other packet-data services.

Since McCaw announced plans to invest in ICO on November 1, 1999, Teledesic representatives have worked closely with ICO and its industrial partners Hughes Space and Communications, Hughes Network Systems, NEC and Ericsson to upgrade the New ICO ground network.