Stratos Announces 2007 Year-End Results



    BETHESDA, MD, Feb. 14 /CNW/ - Stratos Global Corporation, the world's
trusted leader in delivering vital voice, data and IP communication services
today announced financial results for the year ended December 31, 2007. On
December 11, 2007 CIP Investments Inc. (CIP Canada) acquired beneficial
ownership of 100 percent of the Corporation's common shares.

    
                             Financial Highlights
           (in millions of U.S. dollars, except per share amounts)
    ------------------------------------------------------------------------
                                                     Year ended December 31
                                                              2007     2006
    ------------------------------------------------------------------------
    Revenue                                                $ 594.3  $ 537.8
    Segment earnings(*)                                    $ 101.0  $  74.7
    Net earnings (loss)                                    $   2.0  $ (26.8)
    Basic and diluted earnings (loss) per share            $  0.05  $ (0.64)
    ------------------------------------------------------------------------
    (*) Segment earnings is defined by the Corporation as earnings before
        interest expense, depreciation and amortization, other costs
        (income), non-controlling interest, equity in earnings of investee
        and income taxes.
    

    The audited consolidated financial statements and management's discussion
and analysis of financial condition and results of operation are available on
SEDAR, www.sedar.com and the Corporation's website, www.stratosglobal.com
    For the year ended December 31, 2007, the Corporation achieved revenue of
US$594.3 million, an 11 percent increase compared with US$537.8 million in
2006. This improvement primarily reflects the growth in newer generation
Inmarsat products and the acquisition of Xantic, which was completed on
February 14, 2006. Segment earnings for 2007 increased by 35 percent to
US$101.0 million compared with $74.7 million for 2006. The significant
improvement in segment earnings was driven by the increased revenue, higher
volume discounts earned from Inmarsat and cost reductions resulting from the
integration of Xantic and other initiatives to improve operating efficiencies.
    Net earnings for 2007 were US$2.0 million, or US$0.05 per share, compared
with a net loss of US$26.8 million, or US$0.64 per share in 2006. The results
for 2007 were negatively impacted by US$16.7 million, or US$0.40 per share, of
after-tax financial advisory, legal, and other costs related to the
transaction with CIP Canada, which were partially offset by an after-tax gain
of US$3.8 million, or US$0.09 per share, related to the previously described
insurance settlement during the second quarter and an after-tax gain on sale
of certain aeronautical assets of US$1.0 million, or US$0.02 per share.
Results for 2006 were adversely influenced by after-tax write-offs of
US$22.4 million, US$0.53 per share, related primarily to the acquisition of
Xantic.
    Cash flow from operations (including working capital changes) in 2007
totaled US$57.3 million, compared with US$26.9 million generated in 2006. The
improvement primarily reflects higher segment earnings, decreased investment
in working capital, increased interest costs related to the Xantic acquisition
financing and costs related to the transaction with CIP Canada.

    About Stratos

    Stratos with over a century of service, is the world's trusted leader for
vital communications, offering the most powerful and extensive portfolio of
remote communications products, including mobile and fixed satellite and
microwave services. Stratos' more than 20,000 customers use our services on
seven continents and across the world's oceans. Stratos serves U.S. and
international government, military, first responder, NGO, oil and gas,
industrial, maritime, aeronautical, enterprise, and media users. For more
information visit www.stratosglobal.com

    Caution Concerning Forward-Looking Statements

    This document contains statements and information about potential future
circumstances and developments. Such statements and information are qualified
by the inherent risks and uncertainties surrounding future expectations
generally and may differ materially from Stratos Global Corporation's actual
future results. For additional information with respect to these risks and
uncertainties, reference should be made to the Corporation's continuous
disclosure materials filed with the Canadian Securities Administrators,
including the risk factors described in our annual information form. Stratos
Global Corporation disclaims any intention or obligation to update or revise
any forward-looking statements or information, whether as a result of new
information, future events, or otherwise.

    %SEDAR: 00003648E




For further information:

For further information: Investor Contact: Paula Sturge, FCA, Executive
Vice President & CFO, (709) 724-5227, paula.sturge@stratosglobal.com

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STRATOS GLOBAL CORPORATION

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