##### 









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


Form 10-K


ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)


OF SECURITIES EXCHANGE ACT OF 1934


For the fiscal year ended December 31, 2005


Commission File Number 000-50933


ORBIMAGE HOLDINGS INC.


(Exact name of registrant as specified in its charter)


|                                                                          |  |                                     
|------------------------------------------------------------------------- |  | ------------------------------------
|Delaware                                                                  |  | 20-2759725                          
|(State of other jurisdiction of
    Incorporation or organization)        |  | (IRS Employer Identification Number)
|                                                                         
|21700 Atlantic Blvd
    Dulles, VA(Address of principal executive office) |  | 20166(Zip Code)                     

Registrants telephone number, including area code:


(703) 480-7500


Securities Registered Pursuant to Section 12(b) of the
Act:


|                    |  |                                          
|------------------- |  | -----------------------------------------
|Title of Each Class |  | Name of each Exchange on which Registered
|                    |  |                                          
|None                |  | N/A                                      

Securities Registered Pursuant to Section 12(g) of the
Act:


Common Stock, Par Value $0.01


þ o


S-K 10-K 10-K. o þ


o þ


o þ


12b-2 o þ


12b-2


o þ o


12b-2 o þ




APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY


PROCEEDINGS DURING THE PRECEDING FIVE YEARS:


þ o


(APPLICABLE ONLY TO CORPORATE REGISTRANTS)




DOCUMENTS INCORPORATED BY REFERENCE


10-K










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TABLE OF CONTENTS


|         |  |                                                                                                                      |  |        |      |  |  | 
|-------- |  | -------------------------------------------------------------------------------------------------------------------- |  | ------ | ---- |  |  | 
|Item     |  |                                                                                                                      |  |        | Page | 
|         |  |                                                                                                                      |  |        |      | 
|         |  |                                                                                                                      |  | PART I |      |  |  | 
|Item 1   |  | Business                                                                                                             |  |        | 2    | 
|Item 1A  |  | Risk Factors                                                                                                         |  |        | 15   | 
|Item 1B  |  | Unresolved Staff Comments                                                                                            |  |        | 20   | 
|Item 2   |  | Properties                                                                                                           |  |        | 20   | 
|Item 3   |  | Legal Proceedings                                                                                                    |  |        | 20   | 
|Item 4   |  | Submission of Matters to a Vote of Security
    Holders                                                              |  |        | 21   | 
|PART II 
|Item 5   |  | Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities |  |        | 21   | 
|Item 6   |  | Selected Financial Data                                                                                              |  |        | 22   | 
|Item 7   |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                            |  |        | 23   | 
|Item 7A  |  | Quantitative and Qualitative Disclosures
    About Market Risk                                                       |  |        | 38   | 
|Item 8   |  | Financial Statements and Supplementary
    Data                                                                      |  |        | 39   | 
|Item 9   |  | Changes in and Disagreements with
    Accountants on Accounting and Financial Disclosure                             |  |        | 68   | 
|Item 9A  |  | Controls and Procedures                                                                                              |  |        | 68   | 
|Item 9B  |  | Other Information                                                                                                    |  |        | 70   | 
|PART III
|Item 10  |  | Directors and Executive Officers of the
    Registrant                                                               |  |        | 70   | 
|Item 11  |  | Executive Compensation                                                                                               |  |        | 74   | 
|Item 12  |  | Security Ownership of Certain Beneficial
    Owners and Management                                                   |  |        | 74   | 
|Item 13  |  | Certain Relationships and Related
    Transactions                                                                   |  |        | 74   | 
|Item 14  |  | Principal Accountant Fees and Services                                                                               |  |        | 75   | 
|PART IV 
|Item 15  |  | Exhibits and Financial Statement
    Schedules                                                                       |  |        | 75   | 







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PART I







|        |          
|------- | ---------
|Item 1. | Business.

Overview




GeoEye-1. GeoEye-1


end-to






Available Information


www.geoeye.com. Investor Information 10-K, 10-Q, 8-K


2



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Investor Information Corporate Governance


1-800-SEC-0330. www.sec.gov


Company History










OrbView-3 OrbView-3


3



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OrbView-3


OrbView-2 OrbView-2 OrbView-2 OrbView-2 OrbView-2. OrbView-2






Formation of ORBIMAGE Holdings Inc.






4



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The NextView Program




GeoEye-1. GeoEye-1


GeoEye-1 GeoEye-1


5



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GeoEye-1 GeoEye-1


GeoEye-1 GeoEye-1


Space Imaging Acquisition










Remote Imagery Industry




6



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up-to








7



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Products and Services


OrbView-2, OrbView-3


OrbView-3






OrbView-3 OrbView-3 OrbView-3 OrbView-3 OrbView-3




8



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Satellite and Ground System Operations






| |   |                                                                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Three advanced-technology low-Earth orbit, imaging satellites
    carrying sophisticated sensors that collect specific types of
    land and ocean data;                                                  
|
| |  | a central U.S.-based
    ground system that controls the satellites and that receives,
    processes and archives their imagery, and includes electronic
    cataloging and distribution capabilities; and
|
| |  | international regional distributor satellite receiving and
    distribution centers with direct downlinking capabilities.                                                                                 



|                       |  |                                                                                   |  |                                                                                   |  |                                                    
|---------------------- |  | --------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------- |  | ---------------------------------------------------
|                       |  | IKONOS                                                                            |  | OrbView-3                                                                         |  | OrbView-2                                          
|                       |  |                                                                                   |  |                                                                                   |  |                                                    
|Principal Applications |  | National Security, Mapping, Oil and Gas, Agriculture, Land Use,
    Land Planning |  | National Security, Mapping, Oil and Gas, Agriculture, Land Use,
    Land Planning |  | Weather, Fishing, Agricultural, Scientific Research
|Best Ground Resolution |  | 0.82 m Panchromatic, 3.2 m Multispectral                                          |  | 1 m Panchromatic, 4 m Multispectral                                               |  | 1 km to 4 km Multispectral                         
|Scene-Width            |  | 11 km                                                                             |  | 8 km Panchromatic and Multispectral                                               |  | 2,800 km                                           
|Image Area (or Swath)  |  | 121 km(2)                                                                         |  | 64 km(2) Panchromatic and Multispectral                                           |  | N.A.                                               
|On-Board Storage       |  | 80 Gigabytes                                                                      |  | 32 Gigabytes                                                                      |  | 128 Megabytes                                      
|Revisit Time           |  | 3 Days                                                                            |  | 3 Days                                                                            |  | 1 Day                                              
|Orbital Altitude       |  | 680 km                                                                            |  | 470 km                                                                            |  | 705 km                                             
|Design Life            |  | 7 years, increased to 8.3 years                                                   |  | 5 Years                                                                           |  | 7.5 Years                                          

GeoEye-1. GeoEye-1


IKONOS




OrbView-3




9



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GeoEye-1


GeoEye-1 GeoEye-1 GeoEye-1


OrbView-2


OrbView-2 OrbView-2 OrbView-2 OrbView-2 OrbView-2 tm OrbView-2 OrbView-2s OrbView-2 OrbView-2, OrbView-2


Ground Operations Centers and Image Processing Facilities


OrbView-2 OrbView-3


OrbView-3




OrbView-3


10



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GeoEye-1


Backlog


GeoEye-1 GeoEye-1 GeoEye-1


Competition






OrbView-3 OrbView-3 OrbView-3






Seasonality




11



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Employees






Regulation






| |                         
| | ------------------------
| | United States Regulation

General. non-U.S.


DoC regulation.


OrbView-3 GeoEye-1 OrbView-2 OrbView-3 GeoEye-1 OrbView-2 OrbView-3


12



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FCC regulation.


OrbView-2. OrbView-2 OrbView-2


OrbView-3 OrbView-3 OrbView-3 OrbView-3 10-year OrbView-3 GeoEye-1;




13



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| |                         
| | ------------------------
| | International Regulation





| |   |                                                                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | International Telecommunication Union (ITU) regulations,
    which define for each service the technical operating
    parameters, including maximum transmitter power, maximum
    interference to other services and users, and the minimum
    interference the user must operate under for that service;
|
| |  | the Intelsat and Inmarsat agreements, which require that
    operators of international satellite systems demonstrate that
    they will not cause technical harm to Intelsat and
    Inmarsat; and                                                                                                         
|
| |  | regulations of foreign countries that require satellite
    operators to secure appropriate licenses and operational
    authority to use the required spectrum in each country.                                                                                                                            

OrbView-3


GeoEye-1 OrbView-2. OrbView-3 OrbView-3 GeoEye-1


OrbView-2 GeoEye-1






Special Note Regarding Forward-Looking Statements


10-K,


14



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10-K





Item 1A.     Risk
Factors.




| |                                                                                                    
| | ---------------------------------------------------------------------------------------------------
| | Market Acceptance  We cannot assure you that
    the market will accept our products and services.

OrbView-3 GeoEye-1,






| |                                                                                                                                                                                             
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Government Contracts  We depend on contracts
    with government agencies for a substantial portion of our
    revenues. Government agencies can terminate their contracts at
    any time.

GeoEye-1 GeoEye-1.


15



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| |                                                                                                                                                                                  
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | NextView Contract  Our NextView imagery
    purchasing contract is a firm fixed-price contract which could
    subject us to losses in the event that we have cost
    overruns.





| |                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------
| | NextView Contract  We may encounter program
    delays in connection with the construction and launch of
    GeoEye-1.

GeoEye-1 GeoEye-1 GeoEye-1




| |                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------
| | Technological and Implementation Risks  We
    cannot assure you that our satellites will operate as
    designed.

GeoEye-1


GeoEye-1 GeoEye-1


GeoEye-1 GeoEye-1




| |                                                                                                    
| | ---------------------------------------------------------------------------------------------------
| | Limited Life of Satellites  Satellites have
    limited useful lives and are expensive to replace.



16



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|          |  |                                        
|--------- |  | ---------------------------------------
|Satellite |  | Expected Design Life                   
|          |  |                                        
|OrbView-2 |  | 71/2 years (launched in August 1997)   
|IKONOS    |  | 8 years (launched in September 1999)   
|OrbView-3 |  | 5 years (launched in June 2003)        
|GeoEye-1  |  | 7 years (anticipated launch early 2007)







| |                                                                   
| | ------------------------------------------------------------------
| | Insurance  Limited insurance may not cover all
    risks of loss.

GeoEye-1. GeoEye-1, GeoEye-1.






| |                                                                                  
| | ---------------------------------------------------------------------------------
| | Competition  We may not successfully compete in
    the remote imaging industry.



17



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| |                                                                                                                                                                                  
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Government Regulation  Failure to obtain or
    maintain regulatory approvals could result in service
    interruptions or could impede us from executing our business
    plan.

FCC Approvals.


GeoEye-1 GeoEye-1


Other Domestic Approvals.


18



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International Registration and Approvals.


GeoEye-1. GeoEye-1






| |                                                                                                                                                      
| | -----------------------------------------------------------------------------------------------------------------------------------------------------
| | Risks Associated with Distributors and
    Resellers  Foreign distributors and domestic
    value-added resellers may not expand commercial markets.

GeoEye-1


19



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| |                                                                                              
| | ---------------------------------------------------------------------------------------------
| | Risks Associated with the Acquisition of Substantially All
    of the Assets of Space Imaging





| |                                                                                                                                                                                                     
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Risk Associated with International Operation 
    Our international business exposes us to risks relating to
    increased regulation and political or economic instability in
    foreign markets.





| |   |                                                                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | changes in domestic and foreign governmental regulations and
    licensing requirements;                                                                                                            
|
| |  | deterioration of once-friendly relations between the United
    States and a particular foreign country;                                                                                            
|
| |  | increases in tariffs and taxes and other trade barriers;                                                                                                                                            
|
| |  | changes in political and economic stability, including
    fluctuations in the value of foreign currencies, which may make
    payment in U.S. dollars more expensive for foreign
    customers; and
|
| |  | difficulties in obtaining or enforcing judgments in foreign
    jurisdictions.                                                                                                                      






Item 1B.     Unresolved
Staff Comments.









|        |           
|------- | ----------
|Item 2. | Properties










|        |                  
|------- | -----------------
|Item 3. | Legal Proceedings



20



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|        |                                                    
|------- | ---------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders






PART II







|        |                                                                                                                      
|------- | ---------------------------------------------------------------------------------------------------------------------
|Item 5. | Market for Registrants Common Equity, Related
    Stockholder Matters and Issuer Purchases of Equity
    Securities.

over-the








|                                                          |       |                      |     |                   |  |                           |     |   |  |  |         |         | 
|--------------------------------------------------------- | ----- | -------------------- | --- | ----------------- |  | ------------------------- | --- | - |  |  | ------- | ------- | 
|                                                          |       |                      |     |                   |  | Number of Securities     
|                                                          |       | Number of Securities |     | Weighted-Average  |  | Remaining Available for  
|                                                          |       | to be Issued upon    |     | Exercise Price of |  | Future Issuance under    
|                                                          |       | Exercise of          |     | Outstanding       |  | Equity Compensation Plans
|                                                          |       | Outstanding Options, |     | Options, Warrants |  | (Excluding Securities    
|                                                          |       | Warrants and Rights  |     | and Rights        |  | Reflected in Column(a))  
|Plan Category                                             |       | (a)                  |     | (b)               |  | (c)                      
|                                                          |       |                      |     |                   |  |                          
|Equity compensation plans approved by securityholders     |       |                      | N/A |                   |  |                           | N/A |   |  |  | N/A     |        
|Equity compensation plans not approved by securityholders |       |                      | 0   |                   |  |                           | 0   |   |  |  | 129,927 |        
|                                                          |       |                      |     |                   |  |                           |     |   |  |  |         |        
|                                                          | Total |                      |     | 0                 |  |                           |     | 0 |  |  |         | 129,927 | 
|                                                          |       |                      |     |                   |  |                           |     |   |  |  |         |        

S-8


21



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|        |                         
|------- | ------------------------
|Item 6. | Selected Financial Data.

90-7, 90-7) 10-K,




|                                              |  |                          |          |   |                     |   |         |      |  |   |         |   |  |      |         |   |  |   |          |  
|--------------------------------------------- |  | ------------------------ | -------- | - | ------------------- | - | ------- | ---- |  | - | ------- | - |  | ---- | ------- | - |  | - | -------- | -
|                                              |  | Successor Company        |          |   | Predecessor Company |  
|                                              |  |                          |          |   |                     |  
|                                              |  | Years Ended December 31, |         
|                                              |  |                          |         
|                                              |  | 2005                     |          |   | 2004                |   |         | 2003 |  |   | 2002    |   |  | 2001 |        
|                                              |  |                          |          |   |                     |   |         |      |  |   |         |   |  |      |        
|                                              |  | (In thousands)           |         
|Statement of Operations Data:                 |  |                          |          |   |                     |   |         |      |  |   |         |   |  |      |         |   |  |   |          |  
|Revenues                                      |  | $                        | 40,702   |   |                     | $ | 31,020  |      |  | $ | 9,219   |   |  | $    | 15,552  |   |  | $ | 18,755   |  
|Direct expenses                               |  |                          | 38,116   |   |                     |   | 33,754  |      |  |   | 10,697  |   |  |      | 10,498  |   |  |   | 17,311   |  
|Gross profit (loss)                           |  |                          | 2,586    |   |                     |   | (2,734  | )    |  |   | (1,478  | ) |  |      | 5,054   |   |  |   | 1,444    |  
|Selling, general and administrative expenses  |  |                          | 12,341   |   |                     |   | 11,746  |      |  |   | 4,744   |   |  |      | 4,060   |   |  |   | 9,502    |  
|Asset losses and impairment charges           |  |                          |         |   |                     |   |        |      |  |   | 18,205  |   |  |      | 5,115   |   |  |   | 138,040  |  
|Loss from operations                          |  |                          | (9,755   | ) |                     |   | (14,480 | )    |  |   | (24,427 | ) |  |      | (4,121  | ) |  |   | (146,098 | )
|Interest expense, net(1)                      |  |                          | 14,083   |   |                     |   | 10,259  |      |  |   | 1,303   |   |  |      | 8,085   |   |  |   | 30,948   |  
|Unrealized gain on derivative instrument      |  |                          | (2,341   | ) |                     |   |        |      |  |   |        |   |  |      |        |   |  |   |         |  
|Loss from early extinguishment of debt        |  |                          | 2,758    |   |                     |   |        |      |  |   |        |   |  |      |        |   |  |   |         |  
|Reorganization items, net(2)                  |  |                          |         |   |                     |   |        |      |  |   | 110,019 |   |  |      | (18,396 | ) |  |   |         |  
|Income (loss) before benefit for income taxes |  |                          | (24,255  | ) |                     |   | (24,739 | )    |  |   | 84,289  |   |  |      | (30,602 | ) |  |   | (177,046 | )
|Benefit for income taxes                      |  |                          |         |   |                     |   |        |      |  |   |        |   |  |      |        |   |  |   |         |  
|Net earnings (loss)                           |  |                          | (24,255  | ) |                     |   | (24,739 | )    |  |   | 84,289  |   |  |      | (30,602 | ) |  |   | (177,046 | )
|Earnings (loss) per diluted share             |  |                          | (1.50    | ) |                     |   | (3.80   | )    |  |   | 1.73    |   |  |      | (1.26   | ) |  |   | (7.18    | )
|Other Data:                                   |  |                          |          |   |                     |   |         |      |  |   |         |   |  |      |         |   |  |   |          |  
|Cash flows from operating activities          |  |                          | 125,531  |   |                     |   | 27,500  |      |  |   | (2,987  | ) |  |      | (5,118  | ) |  |   | (1,667   | )
|Cash flows from investing activities          |  |                          | (179,598 | ) |                     |   | (3,530  | )    |  |   | (9,118  | ) |  |      | (1,990  | ) |  |   | 10,992   |  
|Cash flows from financing activities          |  |                          | 220,006  |   |                     |   | 22,190  |      |  |   | 20,217  |   |  |      |        |   |  |   |         |  
|Deferred revenue  NextView program(3)        |  |                          | 105,134  |   |                     |   | 24,491  |      |  |   |        |   |  |      |        |   |  |   |         |  

22



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|                                      |  |                          |         |  |                     |  |        |      |  |  |        |  |  |      |       |  |  |  |        | 
|------------------------------------- |  | ------------------------ | ------- |  | ------------------- |  | ------ | ---- |  |  | ------ |  |  | ---- | ----- |  |  |  | ------ | 
|                                      |  | Successor Company        |         |  | Predecessor Company | 
|                                      |  |                          |         |  |                     | 
|                                      |  | Years Ended December 31, |        
|                                      |  |                          |        
|                                      |  | 2005                     |         |  | 2004                |  |        | 2003 |  |  | 2002   |  |  | 2001 |      
|                                      |  |                          |         |  |                     |  |        |      |  |  |        |  |  |      |      
|                                      |  | (In thousands)           |        
|Capital expenditures                  |  |                          | 171,757 |  |                     |  | 3,530  |      |  |  | 21,402 |  |  |      | 1,990 |  |  |  | 22,916 | 
|Depreciation and amortization expense |  |                          | 25,381  |  |                     |  | 22,575 |      |  |  | 3,356  |  |  |      | 6,454 |  |  |  | 13,821 | 
|Interest paid in kind(4)              |  |                          |        |  |                     |  | 10,446 |      |  |  | 1,403  |  |  |      |      |  |  |  |       | 

|                               |  |                   |         |  |                     |   |         |      |  |   |         |  |  |      |          |   |  |   |          |  
|------------------------------ |  | ----------------- | ------- |  | ------------------- | - | ------- | ---- |  | - | ------- |  |  | ---- | -------- | - |  | - | -------- | -
|                               |  | Successor Company |         |  | Predecessor Company |  
|                               |  |                   |         |  |                     |  
|                               |  | December 31,      |        
|                               |  |                   |        
|                               |  | 2005              |         |  | 2004                |   |         | 2003 |  |   | 2002    |  |  | 2001 |         
|                               |  |                   |         |  |                     |   |         |      |  |   |         |  |  |      |         
|                               |  | (In thousands)    |        
|Balance sheet data:            |  |                   |         |  |                     |   |         |      |  |   |         |  |  |      |          |   |  |   |          |  
|Cash and cash equivalents      |  | $                 | 226,504 |  |                     | $ | 60,565  |      |  | $ | 14,405  |  |  | $    | 6,293    |   |  | $ | 13,401   |  
|Total assets                   |  |                   | 570,266 |  |                     |   | 249,146 |      |  |   | 153,319 |  |  |      | 136,578  |   |  |   | 191,475  |  
|Current liabilities(5)         |  |                   | 54,745  |  |                     |   | 53,749  |      |  |   | 5,394   |  |  |      | 247,322  |   |  |   | 271,581  |  
|Long-term obligations(5)       |  |                   | 245,361 |  |                     |   | 85,018  |      |  |   | 73,115  |  |  |      |         |   |  |   |         |  
|Stockholders equity (deficit) |  |                   | 136,897 |  |                     |   | 85,888  |      |  |   | 74,810  |  |  |      | (221,894 | ) |  |   | (190,186 | )






|    |                                                                                         
|--- | ----------------------------------------------------------------------------------------
|(1) | Excludes contractual interest of $26,156 and $19,258 in 2003 and
    2002, respectively.
|   
|(2) | Reorganization items include the following components:                                  

|                           |                                                                                            |                     |         |         |      |   |         |         |  
|-------------------------- | ------------------------------------------------------------------------------------------ | ------------------- | ------- | ------- | ---- | - | ------- | ------- | -
|                           |                                                                                            | Predecessor Company |        
|                           |                                                                                            | Years Ended         |        
|                           |                                                                                            | December 31,        |        
|                           |                                                                                            |                     |        
|                           |                                                                                            | 2003                |         |         | 2002 |  
|                           |                                                                                            |                     |         |         |      |  
|Reorganization items:      |                                                                                            |                     |         |         |      |   |         |        
|                           | Gain on debt discharge                                                                     |                     | $       | 116,056 |      |   | $       |        |  
|                           | Write off of unamortized debt issuance costs                                               |                     |         |        |      |   |         | (11,252 | )
|                           | Professional fees                                                                          |                     |         | (6,067  | )    |   |         | (7,218  | )
|                           | Interest earned on accumulated cash and cash equivalents during
    Chapter 11 proceedings |                     |         | 30      |      |   |         | 74      |  
|                           |                                                                                            |                     |         |         |      |  
|Total reorganization items |                                                                                            | $                   | 110,019 |         |      | $ | (18,396 | )      
|                           |                                                                                            |                     |         |         |      |  






|    |                                                                                                                                                                                                                                                                                                                                                                                            
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(3) | Represents cost share amounts received by NGA, which are
    deferred until GeoEye-1
    is placed into service and will then be recognized as revenue on
    a straight-line basis over the imagery delivery term of the
    program.                                                                                                                                                     
|   
|(4) | Interest expense paid in kind in 2004 consisted of interest on
    the ORBIMAGE Senior Notes and the ORBIMAGE Senior Subordinated
    Notes, all of which was paid in kind from the date of insurance
    until December 31, 2004. Interest expense paid in kind in
    2003 consisted of interest on debt incurred for the purchase of
    insurance coverage for the OrbView-3 satellite.
|   
|(5) | The Predecessor Company defaulted on its senior note obligations
    which caused them to be reclassified as current liabilities at
    December 31, 2002 and 2001, respectively. These senior
    notes were cancelled by the U.S. Bankruptcy Court effective
    December 31, 2003.                                                                                                      






|        |                                                                                           
|------- | ------------------------------------------------------------------------------------------
|Item 7. | Managements Discussion And Analysis of Financial
    Condition And Results Of Operations.

The following discussion and analysis should be read in
conjunction with Selected Historical Consolidated
Financial and Operating Data, and our audited and
unaudited consolidated financial statements and notes thereto
appearing elsewhere in this Report.


23



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Overview


GeoEye-1. GeoEye-1






GeoEye-1.


Reorganization.


24



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NextView Program.


GeoEye-1. GeoEye-1


25



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##### 



GeoEye-1 GeoEye-1


GeoEye-1 GeoEye-1


GeoEye-1 GeoEye-1


Space Imaging Acquisition.






Chapter 11 Reorganization. debtor-in-


26



---



##### 





pari passu




90-7, 90-7)


90-7.




27



---



##### 



Industry and Business Considerations






Critical Accounting Policies




Revenue Recognition and Contract Accounting. GeoEye-1




28



---



##### 





Receivables.


Long-Lived Assets.




Goodwill. year-end


29



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##### 





Results of Operations




Revenues.


OrbView-3 OrbView-3 OrbView-3 OrbView-3


OrbView-3 OrbView-3 OrbView-3


Direct Expenses. OrbView-3 OrbView-3


OrbView-3 OrbView-3


30



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##### 





OrbView-3 OrbView-3 OrbView-3


Selling, General and Administrative Expenses. OrbView-3


Loss on Sale of Satellite License. RadarSat-2 RadarSat-2 RadarSat-2


Interest Expense, net.




31



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##### 



OrbView-3.


31.1



---



##### 





Loss from Early Extinguishment of Debt. GeoEye-1


Unrealized Gain on Derivative Instrument.


Reorganization Items. 90-7,


Benefit for Income Taxes.


Backlog. GeoEye-1 GeoEye-1 GeoEye-1


32



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##### 



Liquidity and Cash Flows




OrbView-3


OrbView-3 GeoEye-1 GeoEye-1 OrbView-3. RadarSat-2 OrbView-3


OrbView-3 OrbView-3 OrbView-3




33



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##### 





GeoEye-1


GeoEye-1








34



---



##### 



OrbView-3


GeoEye-1




OrbView-3


Capital Structure and Resources




35



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##### 











|                                      |  |                        |         |           |        |   |        |           |       |   |           |  |  |         |        |  |  |   |         | 
|------------------------------------- |  | ---------------------- | ------- | --------- | ------ | - | ------ | --------- | ----- | - | --------- |  |  | ------- | ------ |  |  | - | ------- | 
|                                      |  | Payments Due by Period |        
|                                      |  |                        |        
|                                      |  |                        |         | Less Than |        |   |        |           | After |  
|                                      |  | Total                  |         |           | 1 Year |   |        | 1-3 Years |       |   | 4-5 Years |  |  | 5 Years |       
|                                      |  |                        |         |           |        |   |        |           |       |   |           |  |  |         |       
|                                      |  | (In thousands)         |        
|Long-term debt                        |  | $                      | 480,938 |           |        | $ | 34,375 |           |       | $ | 69,688    |  |  | $       | 72,500 |  |  | $ | 304,375 | 
|Operating lease commitments           |  |                        | 6,990   |           |        |   | 1,106  |           |       |   | 2,292     |  |  |         | 2,046  |  |  |   | 1,546   | 
|                                      |  |                        |         |           |        |   |        |           |       |   |           |  |  |         |       
|Total contractual cash obligations(1) |  | $                      | 487,928 |           |        | $ | 35,481 |           |       | $ | 71,980    |  |  | $       | 74,546 |  |  | $ | 305,921 | 






|    |                                                                                                                                                                                                  
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Excludes annual post-launch OrbView-3 on orbit payments of up to
    $1.125 million per year for four years for which actual
    payment amounts are contingent on satellite performance metrics.



36



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##### 









Recent Accounting Pronouncements




37



---



##### 
















|         |                                                                
|-------- | ---------------------------------------------------------------
|Item 7A. | Quantitative and Qualitative Disclosures About Market
    Risk.



38



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##### 








|        |                                            
|------- | -------------------------------------------
|Item 8. | Financial Statements and Supplementary Data

ORBIMAGE HOLDINGS INC.


INDEX TO FINANCIAL STATEMENTS


|                                                                                                         |  |      |    | 
|-------------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|                                                                                                         |  | Page |   
|                                                                                                         |  |      |   
|Report of Independent Registered Public
    Accounting Firm on Internal Control over Financial Reporting |  |      | 40 | 
|Report of Independent Registered Public
    Accounting Firm                                              |  |      | 42 | 
|Consolidated Statements of
    Operations  Years Ended December 31, 2005, 2004
    and 2003             |  |      | 43 | 
|Consolidated Balance Sheets 
    December 31, 2005 and 2004                                             |  |      | 44 | 
|Consolidated Statements of Cash
    Flows  Years Ended December 31, 2005, 2004 and
    2003             |  |      | 45 | 
|Consolidated Statements of
    Stockholders Equity  Years Ended
    December 31, 2005, 2004, and 2003  |  |      | 46 | 
|Notes to Consolidated Financial
    Statements                                                           |  |      | 47 | 

39



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##### 






Report of Independent Registered Public Accounting Firm


on Internal Control over Financial Reporting








Internal Control  Integrated Framework












| |                                                                                                                                                                                                                                                                                                                                                     
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Controls in place relating to the selection and application of
    accounting policies in conformity with generally accepted
    accounting principles related to non-routine and non-systematic
    transactions were not properly designed to provide reasonable
    assurance that such policies and principles would be adequately
    followed.



40



---



##### 



Internal Control  Integrated Framework Internal Control 
Integrated Framework




| |                     
| | --------------------
| | /s/ BDO Seidman, LLP





41



---



##### 






Report of Independent Registered Public Accounting Firm












,


Internal Control 
Integrated Framework




| |                     
| | --------------------
| | /s/ BDO Seidman, LLP





42



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##### 



ORBIMAGE HOLDINGS INC.





CONSOLIDATED STATEMENTS OF OPERATIONS


|                                                                              |                                                                                            |                                   |         |   |                     |   |         |                   |  |   |         |          |  
|----------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------ | --------------------------------- | ------- | - | ------------------- | - | ------- | ----------------- |  | - | ------- | -------- | -
|                                                                              |                                                                                            | Successor Company                 |         |   |                    
|                                                                              |                                                                                            | Years Ended                       |         |   |                    
|                                                                              |                                                                                            | December 31,                      |         |   | Predecessor Company |  
|                                                                              |                                                                                            |                                   |         |   | Year Ended          |  
|                                                                              |                                                                                            | 2005                              |         |   | 2004                |   |         | December 31, 2003 | 
|                                                                              |                                                                                            |                                   |         |   |                     |   |         |                   | 
|                                                                              |                                                                                            | (In thousands, except share data) |        
|Revenues                                                                      |                                                                                            | $                                 | 40,702  |   |                     | $ | 31,020  |                   |  | $ | 9,219   |         
|Direct expenses                                                               |                                                                                            |                                   | 38,116  |   |                     |   | 33,754  |                   |  |   | 10,697  |         
|                                                                              |                                                                                            |                                   |         |   |                     |   |         |                   | 
|Gross profit (loss)                                                           |                                                                                            |                                   | 2,586   |   |                     |   | (2,734  | )                 |  |   | (1,478  | )       
|Selling, general and administrative expenses                                  |                                                                                            |                                   | 12,341  |   |                     |   | 11,746  |                   |  |   | 4,744   |         
|Loss on sale of satellite license                                             |                                                                                            |                                   |        |   |                     |   |        |                   |  |   | 18,205  |         
|                                                                              |                                                                                            |                                   |         |   |                     |   |         |                   | 
|Loss from operations                                                          |                                                                                            |                                   | (9,755  | ) |                     |   | (14,480 | )                 |  |   | (24,427 | )       
|Interest expense, net (excludes contractual interest of $26,156
    in 2003)  |                                                                                            |                                   | 14,083  |   |                     |   | 10,259  |                   |  |   | 1,303   |         
|Loss from early extinguishment of debt                                        |                                                                                            |                                   | 2,758   |   |                     |   |        |                   |  |   |        |         
|Unrealized gain on derivative instrument                                      |                                                                                            |                                   | (2,341  | ) |                     |   |        |                   |  |   |        |         
|                                                                              |                                                                                            |                                   |         |   |                     |   |         |                   | 
|Loss before reorganization items and provision (benefit) for
    income taxes |                                                                                            |                                   | (24,255 | ) |                     |   | (24,739 | )                 |  |   | (25,730 | )       
|Reorganization items:                                                         |                                                                                            |                                   |         |   |                     |   |         |                   |  |   |         |         
|                                                                              | Gain on debt discharge                                                                     |                                   |         |  |                     |   |         |                  |  |   |         | (116,056 | )
|                                                                              | Professional fees                                                                          |                                   |         |  |                     |   |         |                  |  |   |         | 6,067    |  
|                                                                              | Interest earned on accumulated cash and cash equivalents during
    Chapter 11 proceedings |                                   |         |  |                     |   |         |                  |  |   |         | (30      | )
|                                                                              |                                                                                            |                                   |         |   |                     |   |         |                   | 
|Earnings (loss) before provision (benefit) for income taxes                   |                                                                                            |                                   | (24,255 | ) |                     |   | (24,739 | )                 |  |   | 84,289  |         
|Provision (benefit) for income taxes                                          |                                                                                            |                                   |        |   |                     |   |        |                   |  |   |        |         
|                                                                              |                                                                                            |                                   |         |   |                     |   |         |                   | 
|Net earnings (loss)                                                           |                                                                                            | $                                 | (24,255 | ) |                     | $ | (24,739 | )                 |  | $ | 84,289  |         
|                                                                              |                                                                                            |                                   |         |   |                     |   |         |                   | 
|Earnings (loss) per common share  basic                                      |                                                                                            | $                                 | (1.50   | ) |                     | $ | (3.80   | )                 |  | $ | 3.34    |         
|Earnings (loss) per common share  diluted                                    |                                                                                            | $                                 | (1.50   | ) |                     | $ | (3.80   | )                 |  | $ | 1.73    |         



43



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##### 



ORBIMAGE HOLDINGS INC.





CONSOLIDATED BALANCE SHEETS


|                                                                                                                       |                                                                                                                                                                                                           |                                            |         |         |              |  |         |         |         | 
|---------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------ | ------- | ------- | ------------ |  | ------- | ------- | ------- | 
|                                                                                                                       |                                                                                                                                                                                                           | December 31,                               |         |         | December 31, | 
|                                                                                                                       |                                                                                                                                                                                                           | 2005                                       |         |         | 2004         | 
|                                                                                                                       |                                                                                                                                                                                                           |                                            |         |         |              | 
|                                                                                                                       |                                                                                                                                                                                                           | (In thousands, except share data)          |        
|ASSETS                                                                                                                
|Current assets:                                                                                                        |                                                                                                                                                                                                           |                                            |         |         |              |  |         |        
|                                                                                                                       | Cash and cash equivalents                                                                                                                                                                                 |                                            | $       | 226,504 |              |  | $       | 60,565  |        
|                                                                                                                       | Receivables net of allowances of $143 and $126, respectively                                                                                                                                              |                                            |         | 9,934   |              |  |         | 12,148  |        
|                                                                                                                       | Other current assets                                                                                                                                                                                      |                                            |         | 1,334   |              |  |         | 2,612   |        
|                                                                                                                       |                                                                                                                                                                                                           |                                            |         |         |              | 
|                                                                                                                       |                                                                                                                                                                                                           | Total current assets                       |         |         | 237,772      |  |         |         | 75,325  | 
|Property, plant and equipment, less accumulated depreciation of
    $7,265 and $3,751, respectively                    |                                                                                                                                                                                                           |                                            | 33,262  |         |              |  | 18,263  |        
|Satellites and related rights, less accumulated depreciation and
    amortization of $37,514 and $18,142, respectively |                                                                                                                                                                                                           |                                            | 241,829 |         |              |  | 116,640 |        
|Goodwill                                                                                                               |                                                                                                                                                                                                           |                                            | 28,490  |         |              |  | 28,490  |        
|Other assets                                                                                                           |                                                                                                                                                                                                           |                                            | 28,913  |         |              |  | 10,428  |        
|                                                                                                                       |                                                                                                                                                                                                           |                                            |         |         |              | 
|                                                                                                                       |                                                                                                                                                                                                           | Total assets                               |         | $       | 570,266      |  |         | $       | 249,146 | 
|                                                                                                                       |                                                                                                                                                                                                           |                                            |         |         |              | 
|                                                                                                                      
|LIABILITIES AND STOCKHOLDERS EQUITY                                                                                  
|Current liabilities:                                                                                                   |                                                                                                                                                                                                           |                                            |         |         |              |  |         |        
|                                                                                                                       | Accounts payable and accrued expenses                                                                                                                                                                     |                                            | $       | 5,700   |              |  | $       | 3,970   |        
|                                                                                                                       | Amounts payable to subcontractors                                                                                                                                                                         |                                            |         | 29,984  |              |  |         | 47,545  |        
|                                                                                                                       | Accrued interest payable                                                                                                                                                                                  |                                            |         | 17,342  |              |  |         |        |        
|                                                                                                                       | Other current liabilities                                                                                                                                                                                 |                                            |         | 1,719   |              |  |         | 2,234   |        
|                                                                                                                       |                                                                                                                                                                                                           |                                            |         |         |              | 
|                                                                                                                       |                                                                                                                                                                                                           | Total current liabilities                  |         |         | 54,745       |  |         |         | 53,749  | 
|Long-term debt                                                                                                         |                                                                                                                                                                                                           |                                            | 245,361 |         |              |  | 85,018  |        
|Deferred revenue, net of current portion                                                                               |                                                                                                                                                                                                           |                                            | 129,625 |         |              |  | 24,491  |        
|Other noncurrent liabilities                                                                                           |                                                                                                                                                                                                           |                                            | 3,638   |         |              |  |        |        
|                                                                                                                       |                                                                                                                                                                                                           |                                            |         |         |              | 
|                                                                                                                       |                                                                                                                                                                                                           | Total liabilities                          |         |         | 433,369      |  |         |         | 163,258 | 
|                                                                                                                      
|Commitments and contingencies                                                                                          |                                                                                                                                                                                                           |                                            |         |         |              |  |         |        
|                                                                                                                      
|Stockholders equity:                                                                                                  |                                                                                                                                                                                                           |                                            |         |         |              |  |         |        
|                                                                                                                       | Common stock, par value $0.01; 25,000,000 shares
    authorized, 17,442,518 shares issued and outstanding and
    9,917,078 shares issued and outstanding at
    December 31, 2005 and 2004, respectively |                                            |         | 175     |              |  |         | 99      |        
|                                                                                                                       | Additional paid-in-capital                                                                                                                                                                                |                                            |         | 186,137 |              |  |         | 112,373 |        
|                                                                                                                       | Unearned compensation                                                                                                                                                                                     |                                            |         | (421    | )            |  |         | (1,845  | )      
|                                                                                                                       | Accumulated deficit                                                                                                                                                                                       |                                            |         | (48,994 | )            |  |         | (24,739 | )      
|                                                                                                                       |                                                                                                                                                                                                           |                                            |         |         |              | 
|                                                                                                                       |                                                                                                                                                                                                           | Total stockholders equity                 |         |         | 136,897      |  |         |         | 85,888  | 
|                                                                                                                       |                                                                                                                                                                                                           |                                            |         |         |              | 
|                                                                                                                       |                                                                                                                                                                                                           | Total liabilities and stockholders equity |         | $       | 570,266      |  |         | $       | 249,146 | 
|                                                                                                                       |                                                                                                                                                                                                           |                                            |         |         |              | 



44



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##### 



ORBIMAGE HOLDINGS INC.





CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                             |                                                                                                          |                                                             |         |          |                     |   |        |                   |         |   |        |         |          |  
|-------------------------------------------- | -------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------- | ------- | -------- | ------------------- | - | ------ | ----------------- | ------- | - | ------ | ------- | -------- | -
|                                             |                                                                                                          | Successor Company                                           |         |          |                    
|                                             |                                                                                                          | Years Ended                                                 |         |          |                    
|                                             |                                                                                                          | December 31,                                                |         |          | Predecessor Company |  
|                                             |                                                                                                          |                                                             |         |          | Year Ended          |  
|                                             |                                                                                                          | 2005                                                        |         |          | 2004                |   |        | December 31, 2003 |        
|                                             |                                                                                                          |                                                             |         |          |                     |   |        |                   |        
|                                             |                                                                                                          | (In thousands)                                              |        
|Cash flows from operating activities:        |                                                                                                          |                                                             |         |          |                     |   |        |                   |         |   |        |        
|                                             | Net earnings (loss)                                                                                      |                                                             | $       | (24,255  | )                   |   | $      | (24,739           | )       |   | $      | 84,289  |         
|                                             | Adjustments to reconcile net earnings (loss) to net cash
    provided by (used) in operating activities: |                                                             |         |          |                     |   |        |                   |         |   |        |         |         
|                                             |                                                                                                          | Depreciation, amortization and other                        |         |          | 25,381              |   |        |                   | 22,575  |   |        |         | 3,356    |  
|                                             |                                                                                                          | Loss on early extinguishment of debt                        |         |          | 2,758               |   |        |                   |        |   |        |         |         |  
|                                             |                                                                                                          | Unrealized gain on derivative instrument                    |         |          | (2,341              | ) |        |                   |        |   |        |         |         |  
|                                             |                                                                                                          | Interest expense paid in kind                               |         |          |                    |   |        |                   | 11,903  |   |        |         | 1,403    |  
|                                             |                                                                                                          | Stock compensation                                          |         |          | 1,424               |   |        |                   | 3,452   |   |        |         |         |  
|                                             |                                                                                                          | Gain on debt extinguishment                                 |         |          |                    |   |        |                   |        |   |        |         | (116,056 | )
|                                             |                                                                                                          | Loss on sale of satellite license                           |         |          |                    |   |        |                   |        |   |        |         | 18,205   |  
|                                             | Changes in assets and liabilities:                                                                       |                                                             |         |          |                     |   |        |                   |         |   |        |         |         
|                                             |                                                                                                          | (Increase) decrease in receivables and other current assets |         |          | 4,802               |   |        |                   | (11,993 | ) |        |         | 5,416    |  
|                                             |                                                                                                          | Decrease in other assets                                    |         |          | 1,044               |   |        |                   | 1,000   |   |        |         |         |  
|                                             |                                                                                                          | Decrease in accounts payable and accrued expenses           |         |          | 13,222              |   |        |                   | (773    | ) |        |         | (181     | )
|                                             |                                                                                                          | Increase (decrease) in deferred revenue                     |         |          | 103,496             |   |        |                   | 26,075  |   |        |         | 581      |  
|                                             |                                                                                                          |                                                             |         |          |                     |   |        |                   |        
|                                             | Net cash provided by (used in) operating activities                                                      |                                                             |         | 125,531  |                     |   |        | 27,500            |         |   |        | (2,987  | )       
|Cash flows from investing activities:        |                                                                                                          |                                                             |         |          |                     |   |        |                   |         |   |        |        
|                                             | Capital expenditures                                                                                     |                                                             |         | (171,757 | )                   |   |        | (3,530            | )       |   |        | (21,402 | )       
|                                             | Payment for business acquisition                                                                         |                                                             |         | (7,841   | )                   |   |        |                  |         |   |        |         |         
|                                             | Proceeds from sale of satellite license                                                                  |                                                             |         |         |                     |   |        |                  |         |   |        | 10,000  |         
|                                             | Proceeds from launch delay penalties                                                                     |                                                             |         |         |                     |   |        |                  |         |   |        | 2,284   |         
|                                             |                                                                                                          |                                                             |         |          |                     |   |        |                   |        
|                                             | Net cash used in investing activities                                                                    |                                                             |         | (179,598 | )                   |   |        | (3,530            | )       |   |        | (9,118  | )       
|Cash flows from financing activities:        |                                                                                                          |                                                             |         |          |                     |   |        |                   |         |   |        |        
|                                             | Issuance of long-term debt                                                                               |                                                             |         | 245,000  |                     |   |        |                  |         |   |        |        |         
|                                             | Issuances of common stock                                                                                |                                                             |         | 73,840   |                     |   |        | 32,364            |         |   |        |        |         
|                                             | Extinguishment of long-term debt                                                                         |                                                             |         | (85,018  | )                   |   |        |                  |         |   |        |        |         
|                                             | Long-term debt repayment and issuance costs                                                              |                                                             |         | (13,816  | )                   |   |        | (10,174           | )       |   |        |        |         
|                                             | Proceeds from insurance loan                                                                             |                                                             |         |         |                     |   |        |                  |         |   |        | 17,717  |         
|                                             | Proceeds from Orbital Sciences note                                                                      |                                                             |         |         |                     |   |        |                  |         |   |        | 2,500   |         
|                                             |                                                                                                          |                                                             |         |          |                     |   |        |                   |        
|                                             | Net cash provided by financing activities                                                                |                                                             |         | 220,006  |                     |   |        | 22,190            |         |   |        | 20,217  |         
|Net increase in cash and cash equivalents    |                                                                                                          |                                                             | 165,939 |          |                     |   | 46,160 |                   |         |   | 8,112  |        
|Cash and cash equivalents, beginning of year |                                                                                                          |                                                             | 60,565  |          |                     |   | 14,405 |                   |         |   | 6,293  |        
|                                             |                                                                                                          |                                                             |         |          |                     |   |        |                   |        
|Cash and cash equivalents, end of year       |                                                                                                          | $                                                           | 226,504 |          |                     | $ | 60,565 |                   |         | $ | 14,405 |        
|                                             |                                                                                                          |                                                             |         |          |                     |   |        |                   |        
|Supplemental cash flow information:          |                                                                                                          |                                                             |         |          |                     |   |        |                   |         |   |        |        
|                                             | Interest paid                                                                                            |                                                             | $       | 4,295    |                     |   | $      |                  |         |   | $      |        |         
|                                             |                                                                                                          |                                                             |         |          |                     |   |        |                   |        
|Non-cash items:                              |                                                                                                          |                                                             |         |          |                     |   |        |                   |         |   |        |        
|                                             | Capital expenditures                                                                                     |                                                             | $       | (34,625  | )                   |   | $      | (47,545           | )       |   | $      |        |         
|                                             | Amounts payable to subcontractors                                                                        |                                                             |         | 29,984   |                     |   |        | 47,545            |         |   |        |        |         



45



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ORBIMAGE HOLDINGS INC.





CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY


|                                                                                         |  |              |             |   |            |   |      |          |  |   |              |       |  |               |        |   |        |   |          |   |  |   |          |  
|---------------------------------------------------------------------------------------- |  | ------------ | ----------- | - | ---------- | - | ---- | -------- |  | - | ------------ | ----- |  | ------------- | ------ | - | ------ | - | -------- | - |  | - | -------- | -
|                                                                                         |  | Common Stock |             |   | Additional |   |      |          |  |   |              | Total | 
|                                                                                         |  |              |             |   | Paid-In    |   |      | Unearned |  |   | Accumulated  |       |  | Stockholders |       
|                                                                                         |  | Shares       |             |   | Amount     |   |      | Capital  |  |   | Compensation |       |  | Deficit       |        |   | Equity |  
|                                                                                         |  |              |             |   |            |   |      |          |  |   |              |       |  |               |        |   |        |  
|Balance as of December 31, 2002                                                          |  |              | 25,214,000  |   |            |   | 252  |          |  |   | 87,507       |       |  |               |       |   |        |   | (309,653 | ) |  |   | (221,894 | )
|Net earnings                                                                             |  |              |            |   |            |   |     |          |  |   |             |       |  |               |       |   |        |   | 84,289   |   |  |   | 84,289   |  
|Cancellation of Predecessor Company equity and application of
    Fresh-Start accounting |  |              | (25,214,000 | ) |            |   | (252 | )        |  |   | (87,507      | )     |  |               |       |   |        |   | 225,364  |   |  |   | 137,605  |  
|Successor Company  Balance as of December 31,
    2003 prior to capitalization          |  |              |            |   |            |   |     |          |  |   |             |       |  |               |       |   |        |   |         |   |  |   |         |  
|                                                                                         |  |              |             |   |            |   |      |          |  |   |              |       |  |               |        |   |        |  
|Capitalization of Successor Company                                                      |  |              | 6,057,539   |   |            |   | 60   |          |  |   | 74,750       |       |  |               |       |   |        |   |         |   |  |   | 74,810   |  
|Issuance of restricted stock                                                             |  |              | 275,454     |   |            |   | 3    |          |  |   | 3,399        |       |  |               | (3,402 | ) |        |   |         |   |  |   |         |  
|                                                                                         |  |              |             |   |            |   |      |          |  |   |              |       |  |               |        |   |        |  
|Balance as of December 31, 2003                                                          |  |              | 6,332,993   |   |            |   | 63   |          |  |   | 78,149       |       |  |               | (3,402 | ) |        |   |         |   |  |   | 74,810   |  
|                                                                                         |  |              |             |   |            |   |      |          |  |   |              |       |  |               |        |   |        |  
|Net loss                                                                                 |  |              |            |   |            |   |     |          |  |   |             |       |  |               |       |   |        |   | (24,739  | ) |  |   | (24,739  | )
|Issuance of common stock associated with equity offering, net of
    issuance costs      |  |              | 3,405,001   |   |            |   | 34   |          |  |   | 32,330       |       |  |               |       |   |        |   |         |   |  |   | 32,364   |  
|Issuance of restricted stock                                                             |  |              | 179,084     |   |            |   | 2    |          |  |   | 1,894        |       |  |               |       |   |        |   |         |   |  |   | 1,896    |  
|Compensation attributable to vesting of restricted stock                                 |  |              |            |   |            |   |     |          |  |   |             |       |  |               | 1,557  |   |        |   |         |   |  |   | 1,557    |  
|                                                                                         |  |              |             |   |            |   |      |          |  |   |              |       |  |               |        |   |        |  
|Balance as of December 31, 2004                                                          |  |              | 9,917,078   |   |            |   | 99   |          |  |   | 112,373      |       |  |               | (1,845 | ) |        |   | (24,739  | ) |  |   | 85,888   |  
|                                                                                         |  |              |             |   |            |   |      |          |  |   |              |       |  |               |        |   |        |  
|Net loss                                                                                 |  |              |            |   |            |   |     |          |  |   |             |       |  |               |       |   |        |   | (24,255  | ) |  |   | (24,255  | )
|Issuances of common stock                                                                |  |              | 3,275,234   |   |            |   | 33   |          |  |   | 31,305       |       |  |               |       |   |        |   |         |   |  |   | 31,338   |  
|Warrants exercised                                                                       |  |              | 4,250,206   |   |            |   | 43   |          |  |   | 42,459       |       |  |               |       |   |        |   |         |   |  |   | 42,502   |  
|Compensation attributable to vesting of restricted stock                                 |  |              |            |   |            |   |     |          |  |   |             |       |  |               | 1,424  |   |        |   |         |   |  |   | 1,424    |  
|Balance as of December 31, 2005                                                          |  |              | 17,442,518  |   |            | $ | 175  |          |  | $ | 186,137      |       |  | $             | (421   | ) |        | $ | (48,994  | ) |  | $ | 136,897  |  
|                                                                                         |  |              |             |   |            |   |      |          |  |   |              |       |  |               |        |   |        |  



46



---



##### 



ORBIMAGE HOLDINGS INC.





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


December 31, 2005




|    |                    
|--- | -------------------
|(1) | Business Operations

OrbView-3 OrbView-3








47



---



##### 



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)








| |                                                    
| | ---------------------------------------------------
| | Emergence from Chapter 11 Bankruptcy
    Protection



out-of




48



---



##### 



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




(2)     Significant Accounting
Policies




| |                      
| | ---------------------
| | Basis of Presentation

90-7, 90-7)


90-7.




| |                 
| | ----------------
| | Use of Estimates





| |                    
| | -------------------
| | Revenue Recognition



percentage-of




49



---



##### 



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)










| |                         
| | ------------------------
| | Stock-Based Compensation





|                                                               |  |                   |         |             |         |   |         |      |  |   |        | 
|-------------------------------------------------------------- |  | ----------------- | ------- | ----------- | ------- | - | ------- | ---- |  | - | ------ | 
|                                                               |  |                   |         | Predecessor |        
|                                                               |  | Successor Company |         |             | Company |  
|                                                               |  |                   |         |             |         |  
|                                                               |  | 2005              |         |             | 2004    |   |         | 2003 | 
|                                                               |  |                   |         |             |         |   |         |      | 
|Net earnings (loss):                                           |  |                   |         |             |         |   |         |      |  |   |        | 
|Net earnings (loss) available to common stockholders           |  | $                 | (24,255 | )           |         | $ | (24,739 | )    |  | $ | 84,289 | 
|Fair value-based compensation cost, net of taxes               |  |                   | (396    | )           |         |   | (95     | )    |  |   |       | 
|                                                               |  |                   |         |             |         |   |         |      | 
|Pro forma net earnings (loss) available to common stockholders |  | $                 | (24,651 | )           |         | $ | (24,834 | )    |  | $ | 84,289 | 
|                                                               |  |                   |         |             |         |   |         |      | 
|Earnings (loss) per common share  basic                       |  |                   |         |             |         |   |         |      |  |   |        | 
|As reported                                                    |  | $                 | (1.50   | )           |         | $ | (3.80   | )    |  | $ | 3.34   | 
|                                                               |  |                   |         |             |         |   |         |      | 
|Pro forma                                                      |  | $                 | (1.52   | )           |         | $ | (3.81   | )    |  | $ | 3.34   | 
|                                                               |  |                   |         |             |         |   |         |      | 
|Earnings (loss) per common share  diluted                     |  |                   |         |             |         |   |         |      |  |   |        | 
|As reported                                                    |  | $                 | (1.50   | )           |         | $ | (3.80   | )    |  | $ | 1.73   | 
|                                                               |  |                   |         |             |         |   |         |      | 
|Pro forma                                                      |  | $                 | (1.52   | )           |         | $ | (3.81   | )    |  | $ | 1.73   | 
|                                                               |  |                   |         |             |         |   |         |      | 



50



---



##### 



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)








| |                          
| | -------------------------
| | Cash and Cash Equivalents





| |                              
| | -----------------------------
| | Concentrations of Credit Risk





| |                              
| | -----------------------------
| | Recovery of Long-Lived Assets





| |                               
| | ------------------------------
| | Goodwill and Intangible Assets





51



---



##### 



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




| |             
| | ------------
| | Income Taxes





| |                                              
| | ---------------------------------------------
| | Derivative Instruments and Hedging Activities





| |                                                                    
| | -------------------------------------------------------------------
| | Satellites and Related Rights and Property, Plant and
    Equipment





|                        |  |                                               
|----------------------- |  | ----------------------------------------------
|Ground system assets    |  | 8 years                                       
|Furniture and equipment |  | 3 to 7 years                                  
|OrbView-2               |  | 71/2 years                                    
|OrbView-3               |  | 5 years                                       
|Leasehold improvements  |  | Shorter of estimated useful life or lease term



| |                                 
| | --------------------------------
| | Recent Accounting Pronouncements





52



---



##### 



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






|    |                                                     
|--- | ----------------------------------------------------
|(3) | Fresh-Start Accounting, Reporting and Reorganization

90-7.


90-7,






|    |                 
|--- | ----------------
|(4) | NextView Program



GeoEye-1. GeoEye-1


53



---



##### 



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


GeoEye-1 GeoEye-1


GeoEye-1 GeoEye-1


GeoEye-1






|    |                          
|--- | -------------------------
|(5) | Space Imaging Acquisition



54



---



##### 



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)
















55



---



##### 



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)










|    |                                   
|--- | ----------------------------------
|(6) | Relationship with Orbital Sciences



56



---



##### 



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






pari passu






57



---



##### 



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)








|    |                                  
|--- | ---------------------------------
|(7) | Loss on Sale of Satellite License





|    |                            
|--- | ---------------------------
|(8) | Comprehensive Income (Loss)



58



---



##### 



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|    |                                 
|--- | --------------------------------
|(9) | Earnings (Loss) Per Common Share



|                                                                                                               |  |                   |            |             |         |   |           |      |  |   |            | 
|-------------------------------------------------------------------------------------------------------------- |  | ----------------- | ---------- | ----------- | ------- | - | --------- | ---- |  | - | ---------- | 
|                                                                                                               |  |                   |            | Predecessor |        
|                                                                                                               |  | Successor Company |            |             | Company |  
|                                                                                                               |  |                   |            |             |         |  
|                                                                                                               |  | 2005              |            |             | 2004    |   |           | 2003 | 
|                                                                                                               |  |                   |            |             |         |   |           |      | 
|Numerator for basic and diluted earnings (loss) per common
    share:                                          |  |                   |            |             |         |   |           |      |  |   |            | 
|Net earnings (loss) available to common stockholders                                                           |  | $                 | (24,255    | )           |         | $ | (24,739   | )    |  | $ | 84,289     | 
|                                                                                                               |  |                   |            |             |         |   |           |      | 
|Denominator for basic and diluted earnings (loss) per common
    share:                                        |  |                   |            |             |         |   |           |      |  |   |            | 
|Average number of common shares outstanding for basic
    computations                                         |  |                   | 16,213,446 |             |         |   | 6,513,231 |      |  |   | 25,214,000 | 
|Average number of common shares assuming conversion of
    Series A 12% cumulative convertible preferred stock |  |                   | n/a        |             |         |   | n/a       |      |  |   | 23,389,664 | 
|                                                                                                               |  |                   |            |             |         |   |           |      | 
|Average number of common shares outstanding for diluted
    computations                                       |  |                   | 16,213,446 |             |         |   | 6,513,231 |      |  |   | 48,603,664 | 
|Earnings (loss) per common share  basic                                                                       |  | $                 | (1.50      | )           |         | $ | (3.80     | )    |  | $ | 3.34       | 
|                                                                                                               |  |                   |            |             |         |   |           |      | 
|Earnings (loss) per common share  diluted(a)                                                                  |  | $                 | (1.50      | )           |         | $ | (3.80     | )    |  | $ | 1.73       | 
|                                                                                                               |  |                   |            |             |         |   |           |      | 






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | All warrants, nonvested restricted stock and employee and stock
    options of the Successor Company are antidilutive because the
    Successor Company incurred a net loss for the years ended
    December 31, 2005 and 2004. All warrants and employee stock
    options of the Predecessor Company are antidilutive since such
    warrants and options had exercise prices in excess of the
    average market value of the Predecessor Companys common
    stock.



|     |                              
|---- | -----------------------------
|(10) | Property, Plant and Equipment



|                                          |       |      |        |        |      |   |        |        | 
|----------------------------------------- | ----- | ---- | ------ | ------ | ---- | - | ------ | ------ | 
|                                          |       | 2005 |        |        | 2004 |  
|                                          |       |      |        |        |      |  
|Land                                      |       | $    | 213    |        |      | $ | 213    |       
|Ground system assets                      |       |      | 36,543 |        |      |   | 19,289 |       
|Furniture and equipment                   |       |      | 2,604  |        |      |   | 1,968  |       
|Leasehold improvements                    |       |      | 1,167  |        |      |   | 544    |       
|Accumulated depreciation and amortization |       |      | (7,265 | )      |      |   | (3,751 | )     
|                                          |       |      |        |        |      |  
|                                          | Total |      | $      | 33,262 |      |   | $      | 18,263 | 
|                                          |       |      |        |        |      |  





59



---



##### 



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






|     |                              
|---- | -----------------------------
|(11) | Satellites and Related Rights



|                      |                                           |      |         |         |      |  |        |         |  
|--------------------- | ----------------------------------------- | ---- | ------- | ------- | ---- |  | ------ | ------- | -
|                      |                                           | 2005 |         |         | 2004 | 
|                      |                                           |      |         |         |      | 
|In service:           |                                           |      |         |         |      |  |        |        
|                      | OrbView-2 License                         |      | $       | 3,054   |      |  | $      | 3,054   |  
|                      | OrbView-3 Satellite                       |      |         | 93,958  |      |  |        | 86,468  |  
|                      | Accumulated depreciation and amortization |      |         | (37,514 | )    |  |        | (18,142 | )
|                      |                                           |      |         |         |      | 
|                      |                                           |      | 59,498  |         |      |  | 71,380 |        
|Satellites in process |                                           |      | 182,331 |         |      |  | 45,260 |        
|                      |                                           |      |         |         |      | 
|                      | Total                                     |      | $       | 241,829 |      |  | $      | 116,640 |  
|                      |                                           |      |         |         |      | 





|     |             
|---- | ------------
|(12) | Income Taxes



|                                       |  |                   |        |             |         |   |        |      |  |   |         |  
|-------------------------------------- |  | ----------------- | ------ | ----------- | ------- | - | ------ | ---- |  | - | ------- | -
|                                       |  |                   |        | Predecessor |        
|                                       |  | Successor Company |        |             | Company |  
|                                       |  |                   |        |             |         |  
|                                       |  | 2005              |        |             | 2004    |   |        | 2003 | 
|                                       |  |                   |        |             |         |   |        |      | 
|U.S. Federal tax at statutory rate     |  | $                 | (8,247 | )           |         | $ | (8,411 | )    |  | $ | 24,833  |  
|State income taxes, net                |  |                   | (1,059 | )           |         |   | (1,041 | )    |  |   | 3,068   |  
|Adjustment of deferred tax liabilities |  |                   | 8,219  |             |         |   |       |      |  |   |        |  
|Valuation allowance                    |  |                   | 1,399  |             |         |   | 9,452  |      |  |   | (27,901 | )
|Other                                  |  |                   | (312   | )           |         |   |       |      |  |   |        |  
|                                       |  |                   |        |             |         |   |        |      | 
|Total tax provision                    |  | $                 |       |             |         | $ |       |      |  | $ |        |  
|                                       |  |                   |        |             |         |   |        |      | 

60



---



##### 



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                     |                                 |      |         |         |      |   |         |        |  
|------------------------------------ | ------------------------------- | ---- | ------- | ------- | ---- | - | ------- | ------ | -
|                                     |                                 | 2005 |         |         | 2004 |  
|                                     |                                 |      |         |         |      |  
|Deferred tax assets related to:      |                                 |      |         |         |      |   |         |       
|                                     | Net operating loss carryforward |      | $       | 73,698  |      |   | $       | 60,318 |  
|                                     | Property, plant and equipment   |      |         |        |      |   |         | 7,125  |  
|                                     | NextView satellite              |      |         | 49,528  |      |   |         |       |  
|                                     | Other                           |      |         | 561     |      |   |         | 606    |  
|                                     |                                 |      |         |         |      |  
|Deferred tax assets                  |                                 |      | 123,787 |         |      |   | 68,049  |       
|Less: valuation allowance            |                                 |      | (69,192 | )       |      |   | (67,961 | )     
|                                     |                                 |      |         |         |      |  
|Net deferred tax assets              |                                 |      | 54,595  |         |      |   | 88      |       
|Deferred tax liabilities related to: |                                 |      |         |         |      |   |         |       
|                                     | Property, plant and equipment   |      |         | (4,900  | )    |   |         |        |  
|                                     | NextView satellite              |      |         | (49,528 | )    |   |         |       |  
|                                     | Amortization                    |      |         | (167    | )    |   |         | (88    | )
|                                     |                                 |      |         |         |      |  
|Net deferred tax assets              |                                 | $    |        |         |      | $ |        |       
|                                     |                                 |      |         |         |      |  





|     |               
|---- | --------------
|(13) | Long-Term Debt



|                                   |       |               |               |  |      |   |         |         |  |   |        |        | 
|---------------------------------- | ----- | ------------- | ------------- |  | ---- | - | ------- | ------- |  | - | ------ | ------ | 
|                                   |       | Maturity Date |               |  | 2005 |   |         | 2004    | 
|                                   |       |               |               |  |      |   |         |         | 
|Senior Secured Floating Rate Notes |       |               | July 1, 2012  |  |      | $ | 250,000 |         |  | $ |       |       
|Senior Subordinated Notes          |       |               | June 30, 2008 |  |      |   |        |         |  |   | 62,774 |       
|Senior Notes                       |       |               | June 30, 2008 |  |      |   |        |         |  |   | 22,244 |       
|                                   |       |               |               |  |      |   |         |         | 
|                                   | Total |               |               |  |      |   | $       | 250,000 |  |   | $      | 85,018 | 
|                                   |       |               |               |  |      |   |         |         | 

90-7,




61



---



##### 



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






GeoEye-1






GeoEye-1


62



---



##### 



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


GeoEye-1








GeoEye-1




63



---



##### 



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




GeoEye-1




|     |       
|---- | ------
|(14) | Leases



|           |  |   |       | 
|---------- |  | - | ----- | 
|2006       |  | $ | 1,071 | 
|2007       |  |   | 1,090 | 
|2008       |  |   | 1,113 | 
|2009       |  |   | 1,007 | 
|2010       |  |   | 945   | 
|Thereafter |  |   | 1,471 | 
|           |  |   |      
|           |  | $ | 6,697 | 
|           |  |   |      



|     |                      
|---- | ---------------------
|(15) | Employee Benefit Plan





|     |              
|---- | -------------
|(16) | Capital Stock



64



---



##### 



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                           |  |      |         |      |  |  |         | 
|-------------------------- |  | ---- | ------- | ---- |  |  | ------- | 
|                           |  | 2005 |         | 2004
|                           |  |      |         |     
|Volatility                 |  |      | 62.5%   |      |  |  | 47.3%   | 
|Dividend yield             |  |      | 0.0%    |      |  |  | 0.0%    | 
|Risk-free interest rate    |  |      | 4.4%    |      |  |  | 3.6%    | 
|Expected average life      |  |      | 2 years |      |  |  | 4 years | 
|Exercise price per warrant |  |      | $28.22  |      |  |  | $28.22  | 





|     |                      
|---- | ---------------------
|(17) | Stock Incentive Plans





|                                           |  |                  
|------------------------------------------ |  | -----------------
|Volatility                                 |  | 62.5%            
|Dividend yield                             |  | 0.0%             
|Risk-free interest rate                    |  | 3.7% - 3.9%      
|Expected average life                      |  | 6.24 - 6.33 years
|Weighted average exercise price per option |  | $6.50 - $18.25   

65



---



##### 



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                 |  |           |         |   |              |          |            |          |             |   |             |  |  |  |         | 
|-------------------------------- |  | --------- | ------- | - | ------------ | -------- | ---------- | -------- | ----------- | - | ----------- |  |  |  | ------- | 
|                                 |  |           |         |   |              | Weighted |            |          |            
|                                 |  |           |         |   |              | Average  |            |          | Outstanding |  
|                                 |  | Number of |         |   | Option Price |          |            | Exercise |             |   | and         | 
|                                 |  | Shares    |         |   | Per Share    |          |            | Price    |             |   | Exercisable | 
|                                 |  |           |         |   |              |          |            |          |             |   |             | 
|Outstanding at December 31, 2003 |  |           |        |   |              |          |           |          |             |   |            |  |  |  |         | 
|Granted                          |  |           | 317,559 |   |              |          | 6.50-18.25 |          |             |   | 7.33        |  |  |  |         | 
|Cancelled or expired             |  |           | (687    | ) |              |          | 6.50       |          |             |   | 6.50        |  |  |  |         | 
|                                 |  |           |         |   |              |          |            |          |             |   |             | 
|Outstanding at December 31, 2004 |  |           | 316,872 |   |              |          | 6.50-18.25 |          |             |   | 7.33        |  |  |  | 59,059  | 
|Exercised                        |  |           | (9,199  | ) |              |          | 6.50       |          |             |   | 6.50        |  |  |  |         | 
|Cancelled or expired             |  |           | (12,335 | ) |              |          | 6.50       |          |             |   | 6.50        |  |  |  |         | 
|                                 |  |           |         |   |              |          |            |          |             |   |             | 
|Outstanding at December 31, 2005 |  |           | 295,338 |   |              | $        | 6.50-18.25 |          |             | $ | 7.36        |  |  |  | 111,415 | 
|                                 |  |           |         |   |              |          |            |          |             |   |             | 





|     |                                                     
|---- | ----------------------------------------------------
|(18) | Information on Industry Segments and Major Customers





|         |  |                   |        |             |         |   |        |      |  |   |       | 
|-------- |  | ----------------- | ------ | ----------- | ------- | - | ------ | ---- |  | - | ----- | 
|         |  |                   |        | Predecessor |        
|         |  | Successor Company |        |             | Company |  
|         |  |                   |        |             |         |  
|         |  | 2005              |        |             | 2004    |   |        | 2003 | 
|         |  |                   |        |             |         |   |        |      | 
|Domestic |  | $                 | 25,392 |             |         | $ | 16,567 |      |  | $ | 3,525 | 
|Foreign  |  |                   | 15,310 |             |         |   | 14,453 |      |  |   | 5,694 | 
|         |  |                   |        |             |         |   |        |      | 
|Total    |  | $                 | 40,702 |             |         | $ | 31,020 |      |  | $ | 9,219 | 
|         |  |                   |        |             |         |   |        |      | 





66



---



##### 



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






|     |                                             
|---- | --------------------------------------------
|(19) | Summary of Quarterly Information (Unaudited)

|                       |  |                                   |        |   |        |   |        |       |  |   |        |   |  |   |        |  
|---------------------- |  | --------------------------------- | ------ | - | ------ | - | ------ | ----- |  | - | ------ | - |  | - | ------ | -
|                       |  | 2005 Quarters                     |       
|                       |  |                                   |       
|                       |  | First                             |        |   | Second |   |        | Third |  |   | Fourth |  
|                       |  |                                   |        |   |        |   |        |       |  |   |        |  
|                       |  | (In thousands, except share data) |       
|Revenues               |  | $                                 | 8,659  |   |        | $ | 8,501  |       |  | $ | 11,197 |   |  | $ | 12,345 |  
|Gross profit (loss)    |  |                                   | (241   | ) |        |   | (757   | )     |  |   | 1,512  |   |  |   | 2,072  |  
|Net loss               |  |                                   | (5,522 | ) |        |   | (6,816 | )     |  |   | (6,840 | ) |  |   | (5,077 | )
|Loss per diluted share |  |                                   | (0.43  | ) |        |   | (0.39  | )     |  |   | (0.40  | ) |  |   | (0.28  | )

|                          |  |                                   |        |   |        |   |        |       |  |   |        |   |  |   |        |  
|------------------------- |  | --------------------------------- | ------ | - | ------ | - | ------ | ----- |  | - | ------ | - |  | - | ------ | -
|                          |  | 2004 Quarters                     |       
|                          |  |                                   |       
|                          |  | First                             |        |   | Second |   |        | Third |  |   | Fourth |  
|                          |  |                                   |        |   |        |   |        |       |  |   |        |  
|                          |  | (In thousands, except share data) |       
|Revenues                  |  | $                                 | 2,010  |   |        | $ | 9,749  |       |  | $ | 8,891  |   |  | $ | 10,370 |  
|Gross profit (loss)       |  |                                   | (4,566 | ) |        |   | 376    |       |  |   | (157   | ) |  |   | 1,613  |  
|Net loss                  |  |                                   | (8,389 | ) |        |   | (4,428 | )     |  |   | (6,140 | ) |  |   | (5,782 | )
|Loss per diluted share(a) |  |                                   | (1.32  | ) |        |   | (0.70  | )     |  |   | (0.95  | ) |  |   | (0.74  | )






|    |  |                                                                                                                                                                                                                                   
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | For 2004, the sum of each quarters loss per diluted share
    does not equal earnings per diluted share reported for the full
    year due to the effect of the issuance of 3.4 million
    shares in the fourth quarter of 2004.

67



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##### 








|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 9. | Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure.





|         |                        
|-------- | -----------------------
|Item 9A. | Controls and Procedures

Disclosure Controls and Procedures








Managements Report on Internal Control Over Financial
Reporting


13a-15(f)




68



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##### 





Internal Control 
Integrated Framework,








| |                                                      
| | -----------------------------------------------------
| | /s/ MATTHEW M. OCONNELL                             
| |                                                      
| | Matthew M. OConnell,                                
| | President, Chief Executive Officer and Director      
|
| | /s/ HENRY E. DUBOIS                                  
| |                                                      
| | Henry E. Dubois,                                     
| | Executive Vice President and, Chief Financial Officer
| | (Principal Financial Officer)                        
|
| | /s/ TONY A. ANZILOTTI                                
| |                                                      
| | Tony A. Anzilotti,                                   
| | Vice President Finance and Corporate Controller      
| | (Principal Accounting Officer)                       

69



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##### 








|         |                   
|-------- | ------------------
|Item 9B. | Other Information.






PART III







|         |                                                    
|-------- | ---------------------------------------------------
|Item 10. | Directors and Executive Officers of the Registrant.

Directors of ORBIMAGE




|                     |  |     |    |  |          |                                                
|-------------------- |  | --- | -- |  | -------- | -----------------------------------------------
|Name                 |  | Age |    |  | Position
|                     |  |     |    |  |         
|James A. Abrahamson  |  |     | 72 |  |          | Chairman of the Board, Director                
|Matthew M. OConnell |  |     | 53 |  |          | President, Chief Executive Officer and Director
|Joseph M. Ahearn     |  |     | 51 |  |          | Director                                       
|Talton R. Embry      |  |     | 59 |  |          | Director                                       
|Lawrence A. Hough    |  |     | 61 |  |          | Director                                       
|John W. Pitts        |  |     | 56 |  |          | Director                                       
|William W. Sprague   |  |     | 48 |  |          | Director                                       
|James M. Simon, Jr.  |  |     | 58 |  |          | Director                                       



General (Ret.) James A. Abrahamson








Matthew M. OConnell






70



---



##### 





Joseph M. Ahearn








Talton R. Embry








Lawrence A. Hough








John W. Pitts








James M. Simon, Jr.






71



---



##### 





William W. Sprague






Audit Committee Financial Expert




Executive Officers who are not Directors




|                     |  |     |    |  |          |                                                     
|-------------------- |  | --- | -- |  | -------- | ----------------------------------------------------
|Name                 |  | Age |    |  | Position
|                     |  |     |    |  |         
|William Schuster     |  |     | 54 |  |          | Chief Operating Officer                             
|Henry E. Dubois      |  |     | 44 |  |          | Executive Vice President and Chief Financial Officer
|Timothy J. Puckorius |  |     | 45 |  |          | Senior Vice President, International Sales          
|Tony A. Anzilotti    |  |     | 44 |  |          | Vice President, Finance and Corporate Controller    
|Lee Demitry          |  |     | 52 |  |          | Vice President, Satellite Engineering and Operations
|Alex J. Fox          |  |     | 44 |  |          | Vice President, Products and Solutions              
|Ray Helmering, Ph.D. |  |     | 67 |  |          | Vice President, Photogrammetric Engineering         
|Bradley Peterson     |  |     | 46 |  |          | Vice President, IKONOS Operations                   
|William L. Warren    |  |     | 40 |  |          | Vice President, General Counsel and Secretary       

William Schuster






72



---



##### 





Henry E. Dubois




start-ups.


Timothy J. Puckorius






Tony A. Anzilotti






Lee Demitry




20-years


73



---



##### 



Alex J. Fox






Bradley Peterson






William L. Warren











|         |                        
|-------- | -----------------------
|Item 11. | Executive Compensation.








|         |                                                                                                    
|-------- | ---------------------------------------------------------------------------------------------------
|Item 12. | Security Ownership of Certain Beneficial Owners and
    Management and Related Stockholder Matters.








|         |                                                
|-------- | -----------------------------------------------
|Item 13. | Certain Relationships and Related Transactions.



74



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##### 








|         |                                        
|-------- | ---------------------------------------
|Item 14. | Principal Accountant Fees and Services.








|         |                                           
|-------- | ------------------------------------------
|Item 15. | Exhibits and Financial Statement Schedules

10-K.


10-K


|                                                                                                         |  |      |    | 
|-------------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|                                                                                                         |  | Page
|                                                                                                         |  |     
|Report of Independent Registered Public Accounting Firm on
    Internal Control over Financial Reporting |  |      | 40 | 
|Report of Independent Registered Public Accounting Firm                                                  |  |      | 42 | 
|Consolidated Statements of Operations  Years Ended
    December 31, 2005, 2004 and 2003                 |  |      | 43 | 
|Consolidated Balance Sheets  December 31, 2005
    and 2004                                             |  |      | 44 | 
|Consolidated Statements of Cash Flows  Years Ended
    December 31, 2005, 2004 and 2003                 |  |      | 45 | 
|Consolidated Statements of Stockholders Equity 
    Years Ended December 31, 2005, 2004, and 2003      |  |      | 46 | 
|Notes to Consolidated Financial Statements                                                               |  |      | 47 | 

10-K.






|            |    |             |  |                                                                             
|----------- | -- | ----------- |  | ----------------------------------------------------------------------------
|Exhibit No. |    | Description
|            |    |            
|            | 31 | .1          |  | Rule 13a-14(a) Certification of Matthew M. OConnell                        
|            | 31 | .2          |  | Rule 13a-14(a) Certification of Henry E. Dubois                             
|            | 31 | .3          |  | Rule 13a-14(a) Certification of Tony A. Anzilotti                           
|            | 32 | .1          |  | Certification Pursuant to 18 U.S.C. Section 1350 of
    Matthew M. OConnell
|            | 32 | .2          |  | Certification Pursuant to 18 U.S.C. Section 1350 of
    Henry E. Dubois     
|            | 32 | .3          |  | Certification Pursuant to 18 U.S.C. Section 1350 of
    Tony A. Anzilotti   

75



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##### 



SIGNATURES






| |                       
| | ----------------------
| | ORBIMAGE HOLDINGS INC.



| |     |                         
| | --- | ------------------------
| | By: | /s/ MATTHEW M. OCONNELL

| |                                                
| | -----------------------------------------------
| |                                                
| | Matthew M. OConnell,                          
| | President, Chief Executive Officer and Director





|                                                 |  |                                                                                        |  | 
|------------------------------------------------ |  | -------------------------------------------------------------------------------------- |  | 
|Signature                                        |  | Title                                                                                 
|                                                 |  |                                                                                       
|                                                
|/s/ James A. AbrahamsonJames A. Abrahamson       |  | Chairman of the Board                                                                 
|                                                
|/s/ Matthew M.
    OConnellMatthew M. OConnell |  | President, Chief Executive Officer and Director
    (Principal Executive Officer)     
|                                                
|/s/ Henry E. DuboisHenry E. Dubois               |  | Executive Vice President and Chief Financial Officer
    (Principal Financial Officer)
|                                                
|/s/ Tony A. AnzilottiTony A. Anzilotti           |  | Vice President Finance and Corporate Controller
    (Principal Accounting Officer)    
|                                                
|/s/ Joseph M. AhearnJoseph M. Ahearn             |  | Director                                                                              
|                                                
|/s/ Talton R. EmbryTalton R. Embry               |  | Director                                                                              
|                                                
|/s/ Lawrence A. HoughLawrence A. Hough           |  | Director                                                                              
|                                                
|/s/ John W. PittsJohn W. Pitts                   |  | Director                                                                              
|                                                
|/s/ James M.
    Simon, Jr.James M. Simon, Jr.   |  | Director                                                                              
|                                                
|/s/ William W. SpragueWilliam W. Sprague         |  | Director                                                                              

76