(Munich, May 23rd, 2012) GAF AG announced today that it has made a successful contribution to Ambatovy’s biodiversity programme by applying Earth observation technology to the monitoring of forest habitats. The information derived contributes significantly to knowledge about prevailing deforestation rates along Madagascar’s eastern rainforest corridor, parts of which have World Heritage status. The investigation clearly demonstrated the utility of Earth observation technology for monitoring losses and gains in biodiversity associated with large mining projects.

Ambatovy in Madagascar is one of the largest mining and processing projects in Sub-Saharan Africa. With a planned production of 60,000 tonnes of refined nickel and 5,600 tonnes of refined cobalt per year, Ambatovy will soon rank among the largest lateritic nickel mining entities in the world. The mine is located 80 km east of Madagascar’s capital Antananarivo at the southern end of the eastern rainforest corridor, an area of humid forest with unique flora and fauna. A large and complex mosaic of forest and agricultural land surrounds the mine, including the Torotorofotsy Ramsar Wetland, the Analamazoatra Special Reserve and the Mantadia National Park – all of which feature high biodiversity. The project’s industrial sites (plant, tailings management facility and harbour extension) are located 130 km to the northeast of the mine site, at the port city of Toamasina. A pipeline connects the mine to the processing plant, which transports the slurry, a mixture of ore and water. Several forest conservation areas are situated within the Ambatovy Project region. These are located around the mine site, on the pipeline corridor and in the Ankerana forest, an off-site offset area located northeast of the mine and linked to the eastern rainforest corridor.

In order to preserve the biodiversity of this unique environment, the Ambatovy Project has developed a comprehensive biodiversity mitigation and conservation plan. This includes the establishment of on-site and off-site conservation areas or “offsets”, thereby ensuring that impacts of the mining are minimised. Residual losses are offset resulting in no net loss and preferably a net gain in biodiversity over the operating time of the project.

In support of Ambatoy’s ambitious and innovative biodiversity offsets program, GAF performed a land cover analysis using recent and historic satellite data. The focus of GAF´s intervention was to evaluate prevailing forest change between 2006 and 2011 in the Ambatovy Project region and at target conservation sites. Analogue and digital land cover and land cover change maps were produced for the mine site, the pipeline corridor and the forest conservation areas. This information was then utilised to identify forest change, quantify the amount of forest loss, specify the land use classes to which forest was transformed and report on the success of conservation efforts. Data collected on-site were used for training and verification purposes.

“The investigation based on Earth observation data is a really valuable asset for our work”, said Andrew Cooke, environmental manager of the Ambatovy Project. “The data provide objective and reproducible information and enable a quantification of the results of conservation efforts. In particular for our off-site offset area, which is difficult to access, Earth observation data are the only means available for demonstrating achievement of the required biodiversity gains.”

About EIB – Luxembourg

The European Investment Bank (EIB) is the financing arm of the European Union. All member states are shareholders and have jointly subscribed its capital. The aim of the institution is to provide long-term financing for investment projects inside and outside the EU that support the EU’s policy objectives. EIB is an institutional lender to the Ambatovy Project and has provided start-up financing for the monitoring programme described in this announcement under a tri-partite MoU between EIB, LuxSpace and Ambatovy.
More information is available at: www.eib.org

About LuxSpace – Luxembourg

LuxSpace is a daughter company of OHB AG of Bremen, Germany and located at Betzdorf in Luxembourg. The company provides expertise, products and services to the European and global institutional and industrial market in the fields of space and defence system engineering and application development. In the frame of the project, LuxSpace operated as the interface between the EIB, the Ambatovy Project and GAF, assisting EIB in the control and quality assurance of the service implemented.
More information is available at: www.luxspace.lu

About the Ambatovy Project/Madagascar

Ambatovy is a multi-national mining and processing enterprise with four joint-venture partners: Sherritt International Corporation of Canada, Sumitomo Corporation of Japan, Korea Resources Corporation and SNC-Lavalin Incorporated of Canada. The project is supported financially by 14 lenders including government-sponsored export credit agencies, international development banks (including the EIB) and commercial banks from around the world, several of which are Equator Banks and require compliance with IFC performance standards on social and environmental sustainability. The Project’s aim is to develop and operate a nickel and cobalt mine and simultaneously adhere to stringent environmental and social requirements. Ambatovy has provided in-country logistical and technical support for GAF’s assignment and is committed to maintaining the forest monitoring program initiated by the EIB and LuxSpace.

More information is available at: www.ambatovy.com

About GAF – Munich/Germany

GAF AG, an e-GEOS-Telespazio company, is a globally active business with an international reputation as a skilled service provider. GAF designs, manages and implements projects and services in the fields of geo-information, satellite remote sensing and GIS consultancy for public and private clients. Over the past 26 years, GAF has been active in more than 100 countries throughout Europe, Africa, South-America and Asia.

More information is available at: www.gaf.de

Contact details:
GAF AG | Tel. +49 (0) 89 12 15 28 0 | www.gaf.de | info@gaf.de

The Centre for Earth Observation Instrumentation (CEOI) will be holding its next Challenge Workshop – Challenges for EO Instrumentation for UAVs & CubeSats on Tuesday 10th July 2012 at the University of Nottingham. This event is being held in association with the Remote Sensing and Photogrammetry Society (RSPSoc).

The challenge workshop will explore the technology and instrumentation challenges for Earth Observation from Unmanned Autonomous Vehicles (UAVs) and CubeSats. There are a number of small and large UAV systems now on the market and recently there has been a growth in interest in use of CubeSats for EO. Both platforms require compact instruments but there has not been a commensurate development in such instrumentation. The workshop’s goal is to bring together EO scientists and instrumentation developers to investigate opportunities for instrumentation and payload development for science and commercial uses.  The challenge workshop format includes presentations by leading researchers/technologists and discussion sessions to allow all attendees to contribute.

Further information on this Workshop and a draft agenda are available on the CEOI website via the following link

Another date for your diary ….
The Joint NCEO/CEOI Annual Science Conference will be held at the University of Nottingham from Monday 17th to Thursday 20th September 2012

The setting up of such a fund would imply the establishment of an intergovernmental agreement between the EU Member States meeting within the Council.

On 11 May 2012 the European Commission adopted a Communication proposing “the establishment of an Intergovernmental Agreement for the operations of the European Earth monitoring programme (GMES) from 2014 to 2020” 218 Final).

In conclusion to this Communication, the Commission “urges the Member States to initiate the necessary measures for the timely adoption of an intergovernmental agreement and of a regulation for the operations of the GMES programme and reiterates its commitment to support Member States in this process”.

Source gmes.info

Matt O’Connell CEO and President of GeoEye, said that the two companies combined would result in “greater capabilities to meet national security needs, be more cost effective to the U.S. government during a fiscally restrained period, improve value to decision makers, warfighters and shareholders.”

A quick overview of the proposed acquisition: DigitalGlobe shareholders will receive $17.00 per share in total consideration, payable $8.50 per share in cash and $8.50 in GeoEye stock, or 0.3537 shares of GeoEye stock for each share of DigitalGlobe stock. This price represents a 26% premium to DigitalGlobe’s closing share price on May 3, 2012. According to O’Connell, the proposal is structured to provide DigitalGlobe shareholders with the opportunity to participate in the dynamic future growth of the combined company.

Some shareholders might prefer cash, said O’Connell, “we would consider an all cash deal. Our proposal offers shareholders 50% in cash and 50% in stock. We’ve indicated to directors of DigitalGlobe, we consider an all cash deal, or reducing the cash consideration and increasing the stock portion of the deal.” In addition, affiliates of Cerberus Capital Management, L.P., GeoEye’s largest shareholder, are prepared to contribute substantial capital in support of the proposed transaction.

O’Connell said that GeoEye has been in conversation with DigitalGlobe regarding the potential transaction for several months. DigitalGlobe has considered and rejected their prior proposals, and now we think it’s appropriate to make our proposal publics,” O’Connell said. “because it’s such an important matter for all shareholders to know about and consider.”

Making the case for the proposal, O’Connell continued, “This makes proposal makes strategic sense for the U.S. and international customers, for U.S. taxpayers and shareholders of both companies. We’re proposing a structured solution that gives our nation’s warfighters and disaster league workers the information they need while at the same time addressing the nation’s budget deficit. The combined company will create a new class of geospatial information and analytic services that ensures continued technology leaderships and accelerated growth in what is already an expanding industry. In turn, the combined company will be better able to meet the need of U.S. government and international and commercial customers around the world.”

Referring to the “uncertainty in the market created by the U.S. government budget review process for 2013,” O’Connell said that GeoEye is looking at more effective ways to provide the most value during these times to large government clients, who are GeoEye and DigitalGlobe’s primary clients. “A combined company would be larger, more financially sound and better positioned financially without putting our nation’s warfighters or intelligence programs at risk during this fiscally challenging period,” cited O’Connell, linking the proposed acquisition to the stakeholders’ and public’s concerns about national security.

75% of the foundation layer of geointelligence is built on geospatial imagery. Commercial satellite imagery directly supports military operations and the nation’s intelligence interests. The foundation layer is the basis for other geospatial products, for mission planning and rehearsal, command and control, advanced navigation, and targeting – which are all predicated on having geospatial information at their fingertips for combat and command.

With the acquisition of DigitalGlobe, “We can fly one less satellite in the constellation, and still meet our customer needs, thus requiring far less capitalist expenditures,” said O’Connell. “We successfully acquired Space Imaging and SPADAC, we continue to execute well on our business, we believe our current company will deliver value for both shareholders.”

The combined company promises to “bring efficiencies to the National Geospatial-Intelligence Agency (NGA)’s EnhancedView program, in time this will bring the U.S. government increased efficiency only possible global collection, dissemination, production and analytical capabilities.” O’Connell reiterated how the acquisition would enable the two companies to deliver better service to meet national security needs and support warfighters, plus create more high technology jobs in the U.S. –making it look like a proposal DigitalGlobe shareholders may not be able to refuse.

However, over the weekend, DigitalGlobe board members rejected this unsolicited proposal unanimously. From the press release: “Following GeoEye’s public hostile offer last Friday, DigitalGlobe again made the same proposal for the Company to acquire GeoEye, conditioned on reaching agreement over the weekend. Given GeoEye’s rejection of that proposal, DigitalGlobe terminated discussions and will await the government reaching its budget decision regarding EnhancedView. When the government reaches its decision, DigitalGlobe will consider whether to make a proposal to acquire GeoEye.”

More information

Utilities companies need to be able to create value added data products, manage this information and get access to it when needed – for real-time decision-making. Many utility providers have highly complex business models with a variety of field assets and large workforces, requiring a suite of industry specific solutions to address work design, network asset management, outage management, and integrated mobile work force management.

On May 15, Intergraph is hosting a webinar that will demonstrate how easy it is to use our remote sensing and data management tools to accomplish effective data analysis and efficiently organize all data assets. During this webinar, we will illustrate several remote sensing applications for utility asset management that enable utilities to detect changes in geospatial imagery and LiDAR data to monitor transmission corridors, power lines and poles, and analyze for vegetation encroachment. In addition, we’ll show how remote sensing can be feasibly employed in-house for environmental impact statements, planning a new corridor or understanding the fire potential in remote areas.

We highly encourage anyone dealing with geospatial data management in the utilities sector to check out this webinar. Click here to learn more

ON APRIL 8th Envisat, Europe’s largest Earth-observing satellite, unexpectedly stopped talking to its users on the Earth below. Since then those users have been frantically trying to re-establish contact. They rely on Envisat’s radars and other sensors for a wide range of measurements, from the temperature of the oceans to the chemistry of the stratosphere. Scientists have used it to gauge ocean conditions for shipping and to investigate earthquakes; its data have been the basis of thousands of scientific papers.

Envisat had, unlike much of Europe, forgone early retirement: designed for five years of operation, it was on its tenth. Given its advanced years, you would think that planning for its eventual end would be well in hand. You would expect that successor instruments would already be in orbit, their measurements carefully cross-correlated with Envisat’s so that the elucidation of the scope and pace of global environmental change could continue seamlessly. You would be wrong.

Wilful blindness

Providing earthlings with a reliable, continuous record of their planet’s condition would seem a sensible aim in any circumstances. With the state of the atmosphere and oceans (see article) upset in ways whose consequences are not easily foreseen, and may well prove catastrophic, it becomes an imperative. You do not need to know every little thing about the environment in order to make policy about it. But only long-term measurements will allow researchers to get a reliable grip on the science of climate change and other environmental stresses. A firm grasp of the basic trends is a necessary precondition for understanding and for informed policy.

The governments that build and operate satellites like Envisat are not taking that necessity seriously. According to a damning report from America’s National Academies, the number of civilian Earth-observing satellites flown by the United States government looks likely to fall from 23 today to just six in 2020, and the number of instruments in orbit could drop from 90 to 20. The situation in Europe is somewhat less disastrous, but has its own problems. The European Space Agency is unwilling to move forward with a new generation of satellites that can monitor the environment continuously until the European Union promises to pay their operating costs.

Several of the parties involved must share the blame for this failure. The scientists who have a say in setting the priorities for Earth observation often fixate on pet projects and new sorts of measurement, as scientists are wont to do; that can lead to the vital business of long-term monitoring getting downplayed. Co-operation and co-ordination between agencies and countries is not what it should be. Then there is bad luck (or poor judgment): in recent years the National Aeronautics and Space Administration (NASA) lost two Earth-observing missions in a row because of a second-rate rocket for which it has yet to find an adequate replacement.

But the main culprits are governments, which are spending too little on the job. In 2010 the World Meteorological Organisation estimated that getting satellite observations up to scratch in terms of climate monitoring would cost an extra $1 billion a year. In the late 1990s NASA used to spend $2 billion a year on Earth observations, but by 2007 that had fallen to $1.3 billion (the costs of a successor to the Hubble Space Telescope rose from around $2 billion to $9 billion over roughly the same period). Properly co-ordinated, modest increases in the budget in America and the EU, and contributions from other powers (China is now flying very capable Earth-observing satellites; India and Brazil have been in the game for a while), could sort the problem out. Without them, the world will feel its way into the future blind and ill-prepared.

Source The economist

In the summer of 2010, heavy rainfall unleashed floods in northern and eastern Romania. Over 20 people lost their lives, while hundreds of homes were destroyed. Thousands of hectares of farmland, forest and pastures were damaged.

SAFER, the emergency response service of Europe’s Global Monitoring for Environment and Security (GMES) programme, immediately stepped in. Using data from Earth-observing satellites, the organisation provided civil protection authorities with flood extent maps in near-real time.

GMES has been active in Eastern Europe for years, identifying sources of pollution in the Black Sea, providing emergency mapping services for mudslides in Bulgaria and monitoring biodiversity of protected areas in Romania.

These were just some of the examples presented at the ‘GMES: New Opportunities for Eastern Europe’ conference last week. The two-day event was held in Bucharest, Romania – ESA’s newest member state.

The conference aimed to increase awareness amongst Eastern European countries – and in particular the 12 new EU Member States – about GMES and its potential benefits for the environment, civil security and commerce.

Once GMES moves from its research and development phase to full operations in 2014, decision-makers will have access to reliable, timely and accurate information services to manage the environment, understand and mitigate the effects of climate change and ensure civil security.

The programme plans to extend and improve its services with the upcoming series of Sentinel satellites, which are being developed specifically for the operational needs of GMES. Together with in-situ data, the Sentinels will ensure the provision of an uninterrupted data and information flow to the users.

Opening the conference, the president of Romania’s National Authority for Scientific Research, Dragos Ciuparu, spoke about the ever-increasing relevance of Earth observation data not only in Romania, but also in the 12 new EU states.

Mr Ciuparu stressed the need to get the new EU Member States better acquainted with GMES and the role it can play in benefiting the creation and growth of small and medium businesses.

The economic benefits of the GMES programme also came into focus at the conference, as it will generate an estimated €4–12 for every €1 invested.

GMES will not only serve as a trigger for the creation of new markets, jobs, income and economic growth, it will also lead to a substantial amount of savings at both national and local levels.

GMES services will help to save costs through the improved management of natural resources and efficiency in the mitigation of emergency situations.

(source: ESA)

Following rigorous attempts to re-establish contact and the investigation of failure scenarios, the end of the mission is being declared.

A team of engineers has spent the last month attempting to regain control of Envisat, investigating possible reasons for the problem.

Despite continuous commands sent from a widespread network of ground stations, there has been no reaction yet from the satellite.

As there were no signs of degradation before the loss of contact, the team has been collecting other information to help understand the satellite’s condition. These include images from ground radar and the French Pleiades satellite.

With this information, the team has gradually elaborated possible failure scenarios. One is the loss of the power regulator, blocking telemetry and telecommands.

Another scenario is a short circuit, triggering a ‘safe mode’ – a special mode ensuring Envisat’s survival. A second anomaly may have occurred during the transition to safe mode, leaving the satellite in an intermediate and unknown condition.

Although chances of recovering Envisat are extremely low, the investigation team will continue attempts to re-establish contact while considering failure scenarios for the next two months.

The outstanding performance of Envisat over the last decade led many to believe that it would be active for years to come, at least until the launch of the follow-on Sentinel missions.

However, Envisat had already operated for double its planned lifetime, making it well overdue for retirement.

With ten sophisticated sensors, Envisat has observed and monitored Earth’s land, atmosphere, oceans and ice caps during its ten-year lifetime, delivering over a thousand terabytes of data.

An estimated 2500 scientific publications so far have been based on this information, furthering our knowledge of the planet.

During those ten years, Envisat witnessed the gradual shrinking of Arctic sea ice and the regular opening of the polar shipping routes during summer months.

Together with other satellites, it monitored the global sea-level height and regional variations, as well as global sea-surface temperatures with a precision of a few tenths of a degree.

Years of Envisat data have led to a better understanding of ocean currents and chlorophyll concentrations.

In the atmosphere, the satellite observed air pollution increase in Asia and its stability in Europe and North America, and measured carbon dioxide and methane concentrations. Envisat also monitored the Antarctica ozone hole variations.

Over land, it mapped the speed of ice streams in Antarctica and Greenland. Its images were used regularly to update the global maps of land use, including the effects of deforestation.

Using its imaging radar, Envisat mapped ground displacements triggered by earthquakes and volcanic eruptions, improving understanding of tectonics and volcanic mechanisms.

Envisat provided crucial Earth observation data not only to scientists, but also to many operational services, such as monitoring floods and oil spills. Its data were used for supporting civil protection authorities in managing natural and man-made disasters.

Envisat has also contributed valuable information to the services within Europe’s Global Monitoring for Environmental Security (GMES) programme, paving the way for the next generation of satellites.

Now with the end of the mission, the launch of the upcoming GMES Sentinel satellites has become even more urgent to ensure the continuity of data to users, improve the management of the environment, understand and mitigate the effects of climate change and ensure civil security.

(source: ESA)

The mergers and acquisitions within the geospatial technology space are white hot right now, with news today that GeoEye has approached DigitalGlobe in order to acquire and combine companies. The result would be the world’s largest commercial high-resolution satellite company, with streamlined operations that would ensure viability in the face of deep federal cuts.

In addition to high-resolution satellite assets, the combined companies would also align on analytical services for specific markets. The companies have increasingly focused on the value add of their information, with forays into marine, agriculture, natural resources, and other markets in order to balance the military investment, which has proven to be unreliable of late.

Matt O’Connell, chief executive officer and president of GeoEye, said, “This proposal delivers exceptional value for the combatant commanders, national decision makers, civil users and disaster relief workers, who have a critical need for unclassified commercial imagery. It also provides benefits for the taxpayer. It offers our Government a way to get the information it needs while still reducing its funding obligations. The synergies in the combination will also benefit the shareholders of both companies.”

O’Connell continued, “In the face of significant pressure on the U.S. defense budget and intensifying international competition, a combined company will be better positioned to provide the U.S. government with the time-sensitive geospatial intelligence that is needed to support its mission in a very cost-effective manner during these fiscally conservative times. The government is looking to its providers for innovative solutions, and we believe this is the best option to achieve that.”

The move makes a great deal of sense in face of the ending of current conflicts that have spurred such high imagery demand, and with newer defense surveillance satellites that have added a great deal of imaging capacity. For long-term growth of the commercial satellite industry, one strong global player with deep analytical services, could greatly improve the entire industry’s outlook. The energy spent in direct competition could then be applied toward extending the full potential of a fleet of sensors that provide the most accurate real-time picture of our world.

The proposed transaction would give DigitalGlobe shareholders $17.00 per share in total consideration, payable $8.50 per share in cash and $8.50 in GeoEye stock, or 0.3537 shares of GeoEye stock for each share of DigitalGlobe stock. This price represents a 26% premium to DigitalGlobe’s closing share price on May 3, 2012. The proposal is structured to provide DigitalGlobe shareholders with the opportunity to participate in the dynamic future growth of the combined company.

There’s now official word from DigitalGlobe that they have rejected this $792 million offer, stating that it undervalues their company, and revealing that they had proposed to buy GeoEye, retaining 60% of the combined value of the company. It’s clear that the gloves are off now, and that the two major U.S. high-resolution imagery vendors will be battling each other for dominance. Hard to say if this will end in a proxy fight, but the benefits of a merger, and these public discussions, seem to have momentum. With stockholder value at play, ultimately, the investor outlook wins. It’s doubtful that the U.S. federal court would stand any resistance due to the loss of competition in the marketplace, given the strong international competition.

This proactive move, with correspondence between company presidents over the past few months, focuses on the value to the U.S. Government and taxpayer, as well as to the commercial benefits, and the heightened capacities of international commercial satellite vendors. With an acknowledgement to an “uncertain political and fiscal climate,” GeoEye’s CEO Matt O’Connnell, in a letter to DigitalGlobe CEO Jeffrey Tarr, states that, “Given this uncertain political and fiscal climate, we believe it is in our mutual interest to provide our customers with creative solutions to problems rather than passively speculate on one or another outcome.”

The past few months of speculation have certainly been trying for both companies, whose stock prices have fluctuated widely as federal budget figures have been made public. Both companies had press releases this week of their first quarter performance that also affirmed that they will each receive full government support for the 2012 budget year, which amount to $111 million for GeoEye, and $250 million for DigitalGlobe. Both companies also show projected strong growth in their earnings statements.

The openness of these public companies provides a wealth of detail regarding their performance to date, the growth of particular market segments, the diversity of their customer base, their hardware and network capacity, their investments in research and development, and their various service offerings. There’s a great deal of insight to be gleaned from the investor relations pages through earnings reports and quarterly earnings statements on each company’s website.

Some highlights from the companies include:

• the creation of an Analysis Center at DigitalGlobe that focuses on rapid response to world crisis events, such as political unrest and natural disasters
• the enhancement of DigitalGlobe’s ground station capacity that greatly speeds the time from collection to delivery, with just hours in between
• the creation of GeoEye’s eyeQ software-as-a-service platform to provide seamless integration of imagery with other spatial information
• GeoEye’s expanding Marine Services group that provides both fish-finding and oceanic data and services

There is also the matter of the planned launch of GeoEye-2 in the first half of 2013, and the launch of DigitalGlobe’s WorldView-3 satellite in mid-2014. Both satellites are being developed as part of a public/private partnership that is the Enhanced View program. WorldView-3 is slated to have 0.31 meter resolution, eight-band mulitspectral imagery, and eight-band short-wave infrared (SWIR) imagery. GeoEye-2 will have a 0.25 meter resolution, the highest resolution commercially available, and with this third satellite GeoEye gains a daily revisit capacity. Combined, it appears that daily coverage would exceed the ability to image the same spot on the ground three times per day. With current federal restrictions on the commercial sale of imagery to 0.5 meter resolutions, the companies can’t fully capitalize on resolution, which makes the number of visits compelling from a global competition standpoint.

DigitalGlobe has three satellites currently in orbit with QuickBird, WorldView-1, and WorldView-2 that combined visit the same point on the ground globally twice per day. GeoEye has IKONOS, which launched in 2009, and GeoEye-1 with the highest resolution available at .041 meter panchromatic and 1.65-meter multispectral imagery. The combined force of five satellites, with two on the way, would prove to be a powerful combination, with complimentary sensors thanks to the move on behalf of both companies to diversify their satellite capabilities against one another.

Commercial satellite imagery is big business, with GeoEye projecting revenues for 2012 from $355 million to $375 million, and DigitalGlobe projecting 14% growth for 2012 that would amount to more than $385 million. A combined company with yearly revenues of more than $700 million, and with considerably reduced overhead, would certainly be an attractive investment. I’m eager to see what all the stock market analysts make of this merger.

Source V1

The combined company would create the world’s largest fleet of high resolution commercial imagery satellites. The new company would be well-positioned to meet the evolving needs of the U.S. government and other customers in this fiscally constrained environment. We will also continue to invest in new information, analytic services and the most technologically advanced commercial satellites for government and commercial customers around the world.

Matt O’Connell, chief executive officer and president of GeoEye, said, “This proposal delivers exceptional value for the combatant commanders, national decision makers, civil users and disaster relief workers, who have a critical need for unclassified commercial imagery. It also provides benefits for the taxpayer. It offers our Government a way to get the information it needs while still reducing its funding obligations. The synergies in the combination will also benefit the shareholders of both companies.”

O’Connell continued, “In the face of significant pressure on the U.S. defense budget and intensifying international competition, a combined company will be better positioned to provide the U.S. government with the time-sensitive geospatial intelligence that is needed to support its mission in a very cost-effective manner during these fiscally conservative times. The government is looking to its providers for innovative solutions, and we believe this is the best option to achieve that.”

The proposed transaction would give DigitalGlobe shareholders $17.00 per share in total consideration, payable $8.50 per share in cash and $8.50 in GeoEye stock, or 0.3537 shares of GeoEye stock for each share of DigitalGlobe stock. This price represents a 26% premium to DigitalGlobe’s closing share price on May 3, 2012. The proposal is structured to provide DigitalGlobe shareholders with the opportunity to participate in the dynamic future growth of the combined company.

The following is a copy of a letter that GeoEye sent to DigitalGlobe with respect to its proposal:

May 4, 2012

Jeffrey R. Tarr
President and Chief Executive Officer
DigitalGlobe, Inc.
1601 Dry Creek Drive, Ste. 260
Longmont, CO 80503

Dear Jeff:

During the past few months, we have discussed with you a combination of GeoEye and DigitalGlobe. We both appreciate that a combination of our two companies results in greater capability to meet national security needs, is more cost effective to the government during this fiscally constrained period, and provides improved value to decision-makers and warfighters.

The considerable scale of the combined entity creates a strong domestic player in satellite imagery which could compete more effectively with foreign providers. The combination also allows for operating expense synergies and reduced capital requirements while better satisfying customer needs. Your letter from March 2, 2012 conveys this same sentiment:

“…we do agree that a well-managed combined company would enjoy material scale and scope benefits in addition to significant cost savings and would be well positioned to meet the needs of the US Government and other customers.”

We both acknowledge that there have been rumors and speculation regarding cuts. Given this uncertain political and fiscal climate, we believe it is in our mutual interest to provide our customers with creative solutions to problems rather than passively speculate on one or another outcome.

To that end, we propose that GeoEye acquire DigitalGlobe in a friendly transaction whereby DigitalGlobe shareholders would receive $17.00 per share in total consideration. Such consideration will be payable as $8.50 per share in cash and $8.50 in GeoEye stock (DigitalGlobe shareholders would receive 0.3537 shares of GeoEye stock for each share of DigitalGlobe owned). This price represents a 26% premium to DigitalGlobe’s closing share price on May 3, 2012. In addition, our Board of Directors would consider restructuring our proposal to increase the cash consideration up to 100% of the purchase price or, in the alternative, reducing the cash consideration and increasing the stock portion of our offer.

Given our financial strength and longstanding supportive banking relationships, we are highly confident that financing will not represent an impediment to the consummation of the proposed transaction. To provide further certainty to the DigitalGlobe Board of Directors, we have been advised that affiliates of Cerberus Capital Management, L.P., our largest shareholder, are prepared to contribute substantial capital in support of our proposed transaction.

We believe that your shareholders and your Board will agree that this is a compelling proposal.

Our Board has authorized this proposal. We are prepared to move quickly to execute a mutually acceptable definitive agreement. Our offer is subject to satisfactory due diligence, the receipt of U.S. Government approvals, and final Board and shareholder approvals.

We have already undertaken extensive due diligence on DigitalGlobe’s public filings and are now prepared to undertake a mutual detailed due diligence review at your earliest convenience. We believe that with your cooperation, we can complete this detailed due diligence and execute a definitive agreement promptly.

Finally, it is our view that a combination of our companies would have no significant contingencies and that this transaction will be promptly consummated. Our counsel, with the assistance of a highly regarded economist, has undertaken a preliminary review of antitrust and international competition issues attendant to the proposed combination, and believe that, with U.S. Government customer support, the transaction will not involve undue delay. We understand from your communications to us that you and your advisors agree.

We have engaged Goldman, Sachs & Company, Convergence Advisors LLC and Latham & Watkins LLP to advise us in this transaction.

We look forward to a response to this letter and sincerely hope that we may move forward to a negotiated transaction.

Sincerely,
Matthew M. O’Connell

CC: DigitalGlobe Board of Directors

CONFERENCE CALL INFORMATION
GeoEye, Inc. (NASDAQ: GEOY) will host a conference call for investors and analysts.
When: Friday, May 4, 2012, at 8:30 a.m. Eastern Daylight Time
To Participate:
To participate in the call via phone, domestic callers may dial toll-free at (877) 776-4039 and international callers may dial (631) 291-4808 approximately 10 minutes prior to the start time. Callers may identify themselves to the operator as GeoEye conference call participants or by using the conference ID: 62701899. Questions will be accepted from phone participants during the live call after prepared remarks and as time permits.
The conference call will also be webcast on the “Investor Relations” section of the company’s corporate Web site, www.geoeye.com. To directly access the live webcast go to: http://geoy.client.shareholder.com/events.cfm and click on the “May 4, 2012 Investor Update Webcast” link. Please allow 15 minutes before the scheduled start time to register, download and install any necessary audio software.

Replay:
An audio replay of the conference call will be available through midnight May 18, 2012, by dialing (855) 859-2056 and typing in the conference ID number: 62701899.

An archived webcast of the conference call will be available at the same URL address approximately two hours after the conclusion of the call.

About GeoEye

GeoEye is a leading source of geospatial information and insight for decision makers and analysts, who need a clear understanding of our changing world to protect lives, manage risk and optimize resources. Each day, organizations in defense and intelligence, public safety, critical infrastructure, energy and online media rely on GeoEye’s imagery, tools and expertise to support important missions around the globe. Widely recognized as a pioneer in high-resolution satellite imagery, GeoEye has evolved into a complete provider of geospatial intelligence solutions. GeoEye’s ability to collect, process and analyze massive amounts of geospatial data allows our customers to quickly see precise changes on the ground and anticipate where events may occur in the future. GeoEye is a public company listed on NASDAQ as GEOY and is headquartered in Herndon, Virginia with more than 700 employees worldwide. Learn more at www.geoeye.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Without limitation, the words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “will” and similar expressions are intended to identify forward-looking statements. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future, including statements relating to growth, expected levels of expenditures and statements expressing general optimism about future operating results, are forward-looking statements. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements and those presented elsewhere by our management from time to time are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. These risks and uncertainties include, but are not limited to, those described in “Risk Factors” included in our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2011, which we filed with the Securities and Exchange Commission (“SEC”) on March 13, 2012. Copies of all SEC filings may be obtained from the SEC’s EDGAR Web site, http://www.sec.gov/ or by contacting: William L. Warren, Executive Vice President, General Counsel and Secretary, at 703-480-5672.

Nothing herein shall constitute an offer to sell or the solicitation of an offer to buy any securities, nor there may be any sale of securities in any state or jurisdiction where such offer, solicitation or sale would be unlawful prior to registration or qualification under the applicable securities laws of any such state or jurisdiction.

Media:Lauren Odell, Brunswick Group, (212) 333 3810
Investor Relations:Randy Scherago, (703) 480 6325, scherago.randy@geoeye.com

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