* Astronomy

GeoEye, Inc. (NASDAQ: GEOY) , a leading producer of satellite and aerial imagery and geospatial information, today announced it has contracted with ITT Corporation (NYSE: ITT) to begin work on the camera for GeoEye's next satellite, GeoEye-2. This is the first step in a phased development process for an advanced, third-generation satellite capable of discerning objects on the Earth's surface as small as 0.25-meter  in size. The company expects to contract with a satellite builder in 2008 and launch the satellite approximately three years after work begins under that contract.

"America's commercial remote sensing industry has proven itself to be a reliable partner with our national security customers both here in the US and overseas. GeoEye-2 will continue this legacy of achievement and GeoEye looks forward to discussions with overseas customers, the Department of Defence and other agencies as to how this newest satellite will help agencies meet critical missions for national defence and homeland security" - Martin C. Faga, a member of GeoEye's board of directors and a former director of the National Reconnaissance Office (NRO).

"Because of strong market trends, we are moving ahead with plans for GeoEye-2 independent of any formal U.S. Government commitment as an anchor customer. Our financial strategy, since GeoEye's inception almost two years ago, has been to invest prudently and, after long analysis, we have concluded that the market will be ready for another sensor in the 2011 timeframe. GeoEye will continue to maintain a constellation of Earth-imaging sensors in order to remain a leading provider of geospatial imagery and information" - Matthew O'Connell, GeoEye's chief executive officer and presiden.

GeoEye-2 will be of the same general class as GeoEye-1, but will benefit from significant improvements in capability, including enhanced direct tasking, and the potential to collect imagery of the Earth's surface at 0.25-meter ground resolution. While GeoEye has an operating license from the National Oceanic and Atmospheric Administration (NOAA) to build and launch a satellite constellation with this extremely high ground resolution, the final decision regarding GeoEye-2's resolution will be made in response to how best to serve customer requirements, as well as consideration of the current regulatory environment. Under current licensing constraints, only U.S. Government customers and specifically designated allies have access to imagery at this highest resolution while commercial customers receive imagery at the highest resolution allowed by U.S. regulations, currently 0.5-meter ground resolution.

Source