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News Release


Loyola de Palacio

No. 104/04
June 26, 2004

"GALILEO AND GPS WILL NAVIGATE SIDE BY SIDE"
FINAL AGREEMENT SIGNED AT EU-US SUMMIT IN DROMOLAND

The European Union and the United States finally concluded an agreement on GALILEO and GPS at the end of today’s EU-US Summit held in Ireland. Signed by EU Commisison Vice-President Loyola de Palacio and US Secretary of State Colin Powell, the agreement on the promotion, provision and use of the two satellite-based navigation systems and related applications will allow each system to work alongside the other without interfering with its counterpart's signals and thus give a huge boost to users worldwide.

Vice-President Loyola de Palacio expressed her satisfaction: "This agreement will allow the European project GALILEO to become the world standard for civil and commercial use of satellite navigation; it will offer the best possible level of services to all users."

After more than four years of intensive talks, the results for GALILEO, and, more importantly, users of GALILEO and GPS worldwide, are highly satisfactory. The agreement confirms that GPS and GALILEO services will be fully compatible and interoperable and therefore makes the joint use of GPS and GALILEO and the manufacturing of equipment much easier and cheaper.

GALILEO has now become the de facto world standard of open signals in the GNSS mass market. GALILEO will not need to rely on a "GALILEO-only" user community; instead it will be instantly accessible and used by millions of people who today use GPS. This means that all users of satellite radio-navigation will be able to simultaneously, with only one receiver, use one or the other of the two systems, or both at the same time.

In addition to being the first system specifically dedicated to civilian users, the additional feature of GALILEO is its commercial nature.

The agreement with the United States confirms the quick introduction of GALILEO in all user segments (mass market and professional) throughout the world. The market potential is indeed considerable: 3 billion receivers and revenues of some € 250 billion per year by 2010 worldwide and the creation of more than 150,000 high qualified jobs in Europe alone.

The agreement represents a major asset for the business case of the future GALILEO operator expected to finance at least two-thirds of the deployment of the system (€ 1.4 billion), one-third being financed by the public sector (€ 700 million).

Such promising prospects will intensify the current competition between the three pre-selected consortia of companies which are running to get the concession to operate the system. Results of this competition, run by Galileo Joint Undertaking (the program's management-arm), will be disclosed by the Commission in October, ahead of the Council decision in December to move to the successive phases of the program and open the way for the conclusion of the concession contract in 2005.

Finally, this agreement allows the last system specifications to be set, a crucial aspect for the swift operation of GALILEO. After the current development phase (two satellites under construction will be launched by the end of 2005 and two shortly after), the deployment of the remaining twenty-four satellites (and related ground stations) is expected by 2008, date at which the system should start operation.

For more information about GALILEO, please visit:

http://europa.eu.int/comm/dgs/energy_transport/galileo/index_en.htm

http://www.esa.int/export/esaNA/index.html

http://www.galileoju.com/page.cfm?voce=m&idvoce=0

Press Contacts:

Anthony Gooch
202-862-9523

Maeve O'Beirne
202-862-9549



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