ILS release

BAIKONUR COSMODROME, Kazakhstan, March 1, 2006 - Khrunichev and 
International Launch Services regret to announce the failure of the 
Proton launch vehicle to put the ARABSAT 4A satellite into proper orbit 
for EADS Astrium and ARABSAT.

The Proton Breeze M rocket lifted off from the Baikonur Cosmodrome at 
2:10 a.m. today local time (3:10 p.m. Tuesday EST, 20:10 Tuesday GMT). 
Preliminary flight information indicates that the Breeze M upper stage 
shut down early during its planned burn sequence. As a contingency, the 
satellite was separated. We cannot comment on the disposition of the 
spacecraft at this time.

A Russian State Commission is being formed to determine the reasons for 
the anomaly. In parallel with the State Commission, ILS will form its 
own Failure Review Oversight Board to review reasons for the anomaly and 
define a corrective action plan. ILS will release additional information 
when it becomes available.

ILS remains committed to providing reliable, timely launch services for 
all its customers. To this end, ILS will work diligently with its 
partner Khrunichev to return Proton to flight as soon as possible.

###

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