Orbital to Sell its Interest in MacDonald, Dettwiler and Associates For $163 Million

Divestiture of Canadian Subsidiary to Reinforce Space Company's Core

Business Focus and Improve Balance Sheet



Apr 16, 2001, 01:00 ET from Orbital Sciences Corporation

    DULLES, Va., April 16 /PRNewswire/ -- Orbital Sciences Corporation
 (NYSE:   ORB) announced today that it has signed a definitive agreement to sell
 12.35 million shares that it holds in its MacDonald, Dettwiler and Associates
 Ltd. subsidiary (Toronto: MDA) to a Canadian investment group for
 approximately $111 million.  In addition, Orbital also has the option to sell
 its remaining 5.65 million shares.  Estimated proceeds from the sale of all 18
 million shares would be at least $163 million.  The Canadian investment group
 includes CAI Capital Partners and Company II, L.P., British Columbia
 Investment Management Corporation and the Ontario Teachers' Pension Plan
 Board.  The transaction has been approved by Orbital's Board of Directors and
 is subject to certain U.S. and Canadian regulatory approvals and customary
 closing conditions.
     Under the terms of the agreement, Orbital expects to complete the 12.35
 million share initial transaction by mid-May.  The buyers have until May 31,
 2001 to exercise their option to purchase the remaining 5.65 million shares of
 MDA.  Orbital plans to use the proceeds from the MDA transaction to reduce
 debt and boost cash reserves to fund working capital and for other general
 purposes.
     "This agreement is a major step forward in Orbital's 'back-to-basics'
 strategy that focuses our full attention on the company's core space
 technology business, and in our campaign to strengthen our financial
 structure," stated Mr. David W. Thompson, Orbital's Chairman and Chief
 Executive Officer.
     "Together with last year's sale of our Fairchild Defense subsidiary and
 initial public offering of MDA's stock, this divestiture will allow us to
 substantially reduce outstanding debt and improve overall liquidity.  At the
 same time, the transaction will broaden MDA's public investor base in Canada,
 adding strong institutional shareholders who can support its continued growth
 in advanced information-based systems and products," he added.
     MDA is Canada's leading space and information systems company and is the
 world's primary supplier of space robotics technology. It employs
 approximately 1,800 people at major facilities in the Vancouver and Toronto
 areas, as well as at other Canadian and international locations.
     Orbital is one of the world's leading manufacturers of low-cost space
 systems, including satellites, launch vehicles, electronics and sensors, and
 satellite ground systems.  Orbital is also involved with satellite-based
 networks that provide wireless data communications and high-resolution Earth
 imagery to customers all around the world.
     More information about Orbital can be found at http://www.orbital.com .
 
     CONTACT:  Media:  Barron Beneski, 703-406-5528, or
 beneski.barron@orbital.com; or Investors:  Tim Perrott, 703-406-5997, or
 perrott.tim@orbital.com, both of Orbital Sciences Corporation.
 
 

SOURCE Orbital Sciences Corporation
    DULLES, Va., April 16 /PRNewswire/ -- Orbital Sciences Corporation
 (NYSE:   ORB) announced today that it has signed a definitive agreement to sell
 12.35 million shares that it holds in its MacDonald, Dettwiler and Associates
 Ltd. subsidiary (Toronto: MDA) to a Canadian investment group for
 approximately $111 million.  In addition, Orbital also has the option to sell
 its remaining 5.65 million shares.  Estimated proceeds from the sale of all 18
 million shares would be at least $163 million.  The Canadian investment group
 includes CAI Capital Partners and Company II, L.P., British Columbia
 Investment Management Corporation and the Ontario Teachers' Pension Plan
 Board.  The transaction has been approved by Orbital's Board of Directors and
 is subject to certain U.S. and Canadian regulatory approvals and customary
 closing conditions.
     Under the terms of the agreement, Orbital expects to complete the 12.35
 million share initial transaction by mid-May.  The buyers have until May 31,
 2001 to exercise their option to purchase the remaining 5.65 million shares of
 MDA.  Orbital plans to use the proceeds from the MDA transaction to reduce
 debt and boost cash reserves to fund working capital and for other general
 purposes.
     "This agreement is a major step forward in Orbital's 'back-to-basics'
 strategy that focuses our full attention on the company's core space
 technology business, and in our campaign to strengthen our financial
 structure," stated Mr. David W. Thompson, Orbital's Chairman and Chief
 Executive Officer.
     "Together with last year's sale of our Fairchild Defense subsidiary and
 initial public offering of MDA's stock, this divestiture will allow us to
 substantially reduce outstanding debt and improve overall liquidity.  At the
 same time, the transaction will broaden MDA's public investor base in Canada,
 adding strong institutional shareholders who can support its continued growth
 in advanced information-based systems and products," he added.
     MDA is Canada's leading space and information systems company and is the
 world's primary supplier of space robotics technology. It employs
 approximately 1,800 people at major facilities in the Vancouver and Toronto
 areas, as well as at other Canadian and international locations.
     Orbital is one of the world's leading manufacturers of low-cost space
 systems, including satellites, launch vehicles, electronics and sensors, and
 satellite ground systems.  Orbital is also involved with satellite-based
 networks that provide wireless data communications and high-resolution Earth
 imagery to customers all around the world.
     More information about Orbital can be found at http://www.orbital.com .
 
     CONTACT:  Media:  Barron Beneski, 703-406-5528, or
 beneski.barron@orbital.com; or Investors:  Tim Perrott, 703-406-5997, or
 perrott.tim@orbital.com, both of Orbital Sciences Corporation.
 
 SOURCE  Orbital Sciences Corporation