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Globecomm Awarded Ka-Band Infrastructure Contract by Hughes Valued at $18.0 Million; Options Bring Potential Total Contract Value up to $24.0 Million

HAUPPAUGE, N.Y., Oct 22, 2010 (BUSINESS WIRE) --

Globecomm Systems Inc. (NASDAQ: GCOM), a leading global provider of satellite-based communications infrastructure solutions and services, today announced that the Company has been awarded a Ka-band infrastructure contract from Hughes Network Systems, LLC (Hughes), the global leader in broadband satellite networks and services, valued at $18.0 million. The agreement includes options, which if exercised would bring the total contract value up to $24.0 million over 5 years.

Under the terms of the contract, Globecomm will design, install, and test multiple Ka-band earth stations within the U.S., as part of the nation's leading broadband satellite service infrastructure owned and operated by Hughes. Employing Globecomm's earth stations will enable Hughes to deliver very high-speed communications services to potentially 1.5 million or more customer terminals operating over its next generation Jupiter(TM) satellite system, scheduled for launch in early 2012. The turnkey contract scope includes monitoring and control software for all subsystems, allowing remote monitoring and control from distant operational centers, and life cycle support.

David Hershberg, Chairman and CEO, said, "This significant contract with Hughes, the broadband satellite market leader, is a very important contract win for the Company on multiple fronts. As evidenced by this contract and other recent announcements, the Company's infrastructure segment is poised for growth, which is very exciting, as it has been significantly impaired over the past two years by the economic recession. From a technology perspective, the Company is well positioned to meet the engineering challenges, as we have been investing heavily in Ka-band R&D for the ground segment requirements needed to support numerous launches of Ka-band satellites anticipated over the next few years. It follows multiple other Ka-band infrastructure contracts Globecomm has announced over the past twelve months, and we believe we are uniquely qualified to compete for additional opportunities as they come due."

About Hughes Network Systems

Hughes Network Systems, LLC (HUGHES) is the global leader in providing broadband satellite networks and services for large enterprises, governments, small businesses, and consumers. HughesNet(R) encompasses all broadband solutions and managed services from Hughes, bridging the best of satellite and terrestrial technologies. Its broadband satellite products are based on global standards approved by the TIA, ETSI and ITU standards organizations, including IPoS/DVB-S2, RSM-A and GMR-1. To date, Hughes has shipped more than 2.2 million systems to customers in over 100 countries.

Headquartered outside Washington, D.C., in Germantown, Maryland, USA, Hughes maintains sales and support offices worldwide. Hughes is a wholly owned subsidiary of Hughes Communications, Inc. (NASDAQ: HUGH). For additional information, please visit www.hughes.com.

About Globecomm Systems

Globecomm Systems Inc., or Globecomm, is a leading global provider of satellite-based managed network solutions. Employing our expertise in emerging communication technologies we are able to offer a comprehensive suite of system integration, system products, and network services enabling a complete end-to-end solution for our customers. We believe our integrated approach of in-house design and engineering expertise combined with a world-class global network and our 24 by 7 network operating centers provides us a unique competitive advantage. We are now taking this value proposition to selective vertical markets, including government, wireless, media, enterprise, and maritime. As a network solution provider we leverage our global network to provide customers managed access services to the United States Internet backbone, video content, the public switched telephone network or their corporate headquarters, or government offices. We currently have customers for which we are providing such services in the United States, Europe, South America, Africa, the Middle East, and Asia.

Based in Hauppauge, New York, Globecomm Systems also maintains offices in Maryland, New Jersey, Virginia, the Netherlands, South Africa, Hong Kong, Germany, Singapore, the United Arab Emirates and Afghanistan.

This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements are based on management's current expectations and observations. You should not place undue reliance on our forward-looking statements because the matters they describe are subject to certain risks, uncertainties and assumptions that are difficult to predict. Our forward-looking statements are based on the information currently available to us and speak only as of the date of this press release. Over time, our actual results, performance or achievements may differ from those expressed or implied by our forward-looking statements, and such differences might be significant and materially adverse to our security holders.

We have identified some of the important factors that could cause future events to differ from our current expectations and they are described in our most recent Annual Report on Form 10-K, including without limitation under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," and in other documents that we may file with the SEC, all of which you should review carefully. Please consider our forward-looking statements in light of those risks as you read this press release.

SOURCE: Globecomm Systems Inc. 

For Globecomm Investor Relations
Matthew Byron, 631-457-1301
Senior Vice President, Corporate Office
ir@globecommsystems.com
or
For Globecomm Public Relations
pr@globecommsystems.com