The ‘3 Diamonds’ nano-satellites have commenced generating first...

• The ‘3 Diamonds’ nano-satellites have commenced generating first revenues from my existing customers, a major commercial milestone for the Company.
  
  
• First revenues follow months of successful performance optimisation and recent designation of the 3 Diamonds as “fully operational”.
  
  
• Approximately A$1million of annualised revenue is expected to be generated from only current contracted customers to use bandwidth generated by the 3 Diamonds.
  
  
• Binding contracts with customers to utilise the 3 Diamonds narrowband communication data capacity for internet of things (IOT), machine to machine (MTM) and asset tracking services, is expected to ramp up during H2 2018.
  
  
• The Company is now quickly progressing towards increasing capacity through launching the 200 Equatorial Constellation “Pearl” nano-satellites, which is due to commence deployment in Q1 2019, following which the revenue generation opportunity increases significantly.
  
  
• At 100 satellites, a circa A$300 - $500 million per annum revenue opportunity exists at SAS target pricing, which is significantly cheaper than current narrowband service market rates.
  
  
• At 200 satellites, a circa A$600 million - $1 billion per annum revenue opportunity exists under the same SAS target market pricing.
  

Sky and Space Global Ltd (ASX: SAS, “Sky and Space Global” or the “Company”) is pleased to announce that the ‘3 Diamonds’, the world’s smallest communication satellites, are fully operational

and have started to generate revenue from existing customers. Revenues are expected to ramp up to approximately A$1m per year on an annualized basis from existing customers only, over the coming months. This achievement is a major commercial milestone for the Company.

The 3 Diamonds satellites are currently being deployed in field testing with new customers, and on conversion of any new customers to binding contracts, this initial revenue number is expected to grow during 2018.

The 3 Diamonds were recently designated “fully operational” are now evenly spaced in one singular orbit approximately 700km apart, having undergone months of proof of concept testing across a number of functionalities, including phone calls, IOT, MTM, Instant Messaging (IM), Push-To-Talk (PTT) services, and data store-and-forward between different locations on Earth.