DBSI Signs Spacecraft and Launch Service Contracts

Worth $47 Million for LEO Satellite System MILL VALLEY, Calif. (ots-PRNewswire) - DBS Industries, Inc.(OTC Bulletin Board: DBSS) today announced it has signedcontracts totaling $US47 million with Surrey Satellite TechnologyLtd. (SSTL) in the UK and with Eurockot, a joint venture partnerof Daimler Chrysler Aerospace (Dasa), Germany and KhrunichevState Research and Production Space Center, Russia. The contractcovers spacecraft construction and launch services associatedwith its planned constellation of six low-earth-orbiting (LEO)satellites for two-way data messaging. "We are gratified to have partners with the internationalprestige and qualifications of SSTL and Eurockot, who will enableDBSI to stay on the critical path toward its in-service date,"said Fred W. Thompson, president and chief executive officer ofDBSI. "SSTL is a recognized commercial manufacturer and operator ofLEO satellites which has designed, built and launched 14microsatellites for commercial customers," Thompson added. "Thesecustomers required communications services, remote sensing andtechnology verification, as well as space science missions withcivil and military applications." Thompson added: "Both SSTL and Eurockot, an experienced launchservices provider, have signed share purchase agreements to makean equity investment in DBSI, the terms and conditions of whichwill be disclosed during the coming month." Alcatel Space Industries, France, which has been working undera $2 million contract with DBSI since last December for systemengineering, payload and ground segment specifications, hasrequested additional time to complete the technicalspecifications and agree on final terms for an "end-to-end, inorbit" contract. DBSI has granted the extension and will continue to work withAlcatel, while also continuing to talk with other qualifiedcompanies who are candidates to become prime contractor andcommunications payload manufacturer. Final contract terms will becompleted within the next month, at which time the primecontractor and communications payload manufacturer will beappointed to join the consortium. The satellite system will utilize the license issued by theFederal Communications Commission on April 1, 1998 to E-SAT,Inc., a company jointly owned by EchoStar Communications (Nasdaq:DISH) and DBS Industries. DBSI said it expects to launch thefirst group of three satellites in the first quarter, 2001. DBSI's system will target hard-to-locate utility meters andother fixed assets, first in the US and later, as operatingpermits are obtained, in other countries around the world. Low-power transmitters utilizing Code Division Multiple Access (CDMA)technology will transmit usage, safety and other messages tosatellites circling the globe in near-polar orbit. Gunther Stamerjohanns, chief executive officer of Eurockot,expressed satisfaction with the DBSI contract: "We have had along association with DBSI and the E-SAT project and we aredelighted that we have been selected as the launch partner forthis exciting program," he commented. "We have every confidence in the E-SAT project and aredelighted to participate in this exciting venture," saidProfessor Martin Sweeting OBE, managing director of SSTL. "Thedesign and build of the E-SAT constellation will exploit theextensive skills and experience which the company has acquired insophisticated microsatellite technology over the last 20 years." DBSI is a development stage company dedicated to providinglow-cost data messaging services to businesses around the world.Through its jointly-owned E-SAT licensee, it plans to concentrateon the hard-to-access sector of the Automated Meter Reading (AMR)market, which has been estimated to include more than 130 millionunits worldwide. SSTL, a University of Surrey company, was formed to make thecost-effective small satellite techniques developed by theUniversity's researchers available in the commercial marketplace.Independent from the University, SSTL retains close links withthe advanced research and educational facilities on the campus.Based at the Surrey Space Centre, which contains state-of-the-artclean room facilities, SSTL not only designs and buildscommercial satellites, but also runs highly successfulmicrosatellite technology transfer and training programs. Eurockot is the joint venture of DaimlerChrysler Aerospace(Dasa), Germany, and Khrunichev State Research and ProductionSpace Center, Russia, to market the Russian Rockot launch vehicleas a readily available, proven and competitive launch system tothe LEO satellite market. Rockot is a three-stage liquidpropellant launcher with the reignitable, highly maneuverableBreeze upper stage. The booster units (1st and 2nd stage) consistof the highly-reliable SS-19 ICBM, to which the newly developedupper stage Breeze is added. NOTE: This press release contains forward looking statements.These statements are subject to certain risks and uncertaintiesthat could cause actual results to differ materially from thoseanticipated in a forward looking statement. Factors that mightcause such a difference include, but are not limited to, theavailability of project financing for the LEO satellite system onterms and conditions favorable to DBSI and other factors setforth in the company's documents filed with the Securities andExchange Commission. Readers should not place undue reliance on forward lookingstatements, which only reflect the view of management as of theabove date. The company does not undertake the obligation topublicly revise these forward looking statements to reflectsubsequent events or circumstances. Readers should carefullyreview the risk factors described in other documents the companyfiles from time to time with the Securities and ExchangeCommission. ots Original Text Service: DBS Industries, Inc.Internet: http://www.newsaktuell.de Contact: Michael Vernetti ofDBSI, 415-380-8055, mikev@dbsind.com; or Neal Rosen of Kalt RosenChase & Co., 415-397-2686, for DBS Industries Web site:http://www.dbsindustries.com

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