A Year of Performance; ILS Adapts in a Dynamic Marketplace

To Our Customers:

The year 2009 was quite remarkable for ILS in serving the commercial launch market. In the face of global economic uncertainties and financial distress in the launch industry, ILS has adapted, in every circumstance, to the changes and challenges that our customers demanded. With the steadfast support we have received from you, our customers, 2009 was a fantastic year.

We began the year with the excitement of reaching a significant milestone, the 50th ILS Proton launch, with the W2A satellite for longtime customer Eutelsat. This was the first of seven successful ILS launches, and 10 successful Proton launches in all (7 commercial, 3 Federal).

We competitively secured 11 new orders in 2009, and ILS is poised to take on additional orders, supporting missions and maintaining our firm backlog at 23 missions. It is our obligation to execute and perform flawlessly on each one of those missions for you – one successful mission at a time.

Our consistent production and launch performance resulted in the highest launch rate in the industry and the ability to accommodate two additional customers on very short notice. ILS demonstrated our commitment and capability to integrate both Asiasat-5 and Eutelsat W7 missions in record time in support of our customer’s critical business plans. Vertical integration of the Proton supply base with Khrunichev and focus on the Quality Initiatives continues to yield results. In the last 18 months, we have had 17 consecutive successful Proton launches– 11 Commercial ILS missions and 6 Federal missions.

As you know, success in one year is dependent on current and prior efforts, we have been purposefully building a strong customer, operational and financial foundation for the last several years to create a company that will succeed well into the future. Our principles of maintaining open communications, a teamwork environment, a focus on performance and learning from our mistakes are the key ingredients as we take on new competitive thrusts to create value for our customers and succeed in the future.

On behalf of the entire ILS/Khrunichev team, we thank you for your continued trust and support. Our goal is always to provide the best value for you and to perform.

Our very best to you for a prosperous and Happy New Year!

With sincere gratitude,

Frank McKenna
President, International Launch Services