1. May 26 th, 2005ISB Confidential 0 COMSTAC John Vinter International Space Brokers, Inc. 1300 Wilson Boulevard, Suite 990 Rosslyn, Virginia 22209 Telephone: (703) 841-1334 Facsimile: (703) 841-0525 Website: www.isbworld.com Thursday, May 26, 2005

2. REPORT OF THE RMWG Thursday, March 26, 2005

3. May 26 th, 2005ISB Confidential 2 Report of the RMWG May 26, 2005   Public Law 108-428 extends the liability indemnification regime for the commercial space transportation industry for a period of five years, to December 31, 2009   Requires ”an independent comprehensive study” by a non-profit entity of the continuing need for such indemnification authority   The FAA has selected the Aerospace Corporation to undertake the study   The RMWG intends to submit to Aerospace Corporation its previous report (2001) on the subject of the continuing need for the indemnification authority and consider, in light of the new legislative mandate, how it may update that report to COMSTAC.

4. SPACE INSURANCE MARKET IN 2005

5. May 26 th, 2005ISB Confidential 4 Space Insurance Market Today Policy Period  Launch + 1 year  Annual In-orbit Technical Margins  1 year propellant margin or equivalent deductible  7.5% EOL power margin or equivalent deductible General Comment  Coverage remains restrictive, but some loosening noted.  ITAR remains an issue. Capacity  Launch $425 million  In-orbit $240 million  3rd Party Liability $500 million Constructive Total Loss Point  75% or greater (desire by some to eliminate)

6. May 26 th, 2005ISB Confidential 5 COMSTAC John Vinter International Space Brokers, Inc. 1300 Wilson Boulevard, Suite 990 Rosslyn, Virginia 22209 Telephone: (703) 841-1334 Facsimile: (703) 841-0525 Website: www.isbworld.com Thursday, May 26, 2005