##### 









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, 2004                                         

Commission File Number 000-50933





ORBIMAGE Inc.


(Exact name of registrant as specified in its charter)


|                                                                           |  |                                               
|-------------------------------------------------------------------------- |  | ----------------------------------------------
|Delaware(State of other jurisdiction of
    Incorporation or organization) |  | 54-1660268(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





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












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TABLE OF CONTENTS


|         |  |                                                                                                                  |  |      |    | 
|-------- |  | ---------------------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|Item     |  |                                                                                                                  |  | Page |   
|         |  |                                                                                                                  |  |      |   
|PART I  
|Item 1.  |  | Business                                                                                                         |  |      | 2  | 
|Item 2.  |  | Properties                                                                                                       |  |      | 18 | 
|Item 3.  |  | Legal Proceedings                                                                                                |  |      | 18 | 
|Item 4.  |  | Submission of Matters to a Vote of Security Holders                                                              |  |      | 18 | 
|        
|PART II 
|Item 5.  |  | Market for Registrants Common Equity, Related Stockholder
    Matters and Issuer Purchases of Equity Securities |  |      | 19 | 
|Item 6.  |  | Selected Financial Data                                                                                          |  |      | 20 | 
|Item 7.  |  | Managements Discussion and Analysis of Financial Condition
    and Results of Operations                        |  |      | 21 | 
|Item 7A. |  | Qualitative and Quantitative Disclosure of Market Risk                                                           |  |      | 32 | 
|Item 8.  |  | Financial Statements and Supplementary Data                                                                      |  |      | 33 | 
|Item 9.  |  | Changes in and Disagreements with Accountants on Accounting and
    Financial Disclosure                         |  |      | 59 | 
|Item 9A. |  | Controls and Procedures                                                                                          |  |      | 59 | 
|Item 9B. |  | Other Information                                                                                                |  |      | 59 | 
|        
|PART III
|Item 10. |  | Directors and Executive Officers of the Registrant                                                               |  |      | 60 | 
|Item 11. |  | Executive Compensation                                                                                           |  |      | 63 | 
|Item 12. |  | Security Ownership of Certain Beneficial Owners and Management
    and Related Stockholder Matters               |  |      | 67 | 
|Item 13. |  | Certain Relationships and Related Transactions                                                                   |  |      | 70 | 
|Item 14. |  | Principal Accountant Fees and Services                                                                           |  |      | 70 | 
|        
|PART IV 
|Item 15. |  | Exhibits, Financial Statement Schedules                                                                          |  |      | 72 | 

1



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PART I




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

Overview










Available Information


www.orbimage.com. Investor Information Investor Information Corporate Governance


www.sec.gov


2



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Company History; Relationship with Orbital Sciences
















3



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The NextView Program










4



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Remote Imagery Industry














5



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Products and Services












tm tm. tm


6



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tm tm tm


tm tm tm tm tm tm tm.






Satellite and Ground System Operations






| |   |                                                                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | two 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.                                                                                 

7



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



OrbView-3




OrbView-5




OrbView-2


tm.


8



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Ground Operations Centers and Image Processing Facilities












Backlog




Competition






9



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1 2






Seasonality




Employees






Regulation




10



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

General.


DoC regulation.






FCC regulation.


11



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





| |   |                                                                                                                                                                                                                                                                     
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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.                                                                                    





12



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Special Note Regarding Forward-Looking Statements




Risks Related to our Company




| |                                                                                                                                               
| | ----------------------------------------------------------------------------------------------------------------------------------------------
| | Limited History of Operations and Net Losses 
    Given our limited operating history and net losses, our future
    prospects are uncertain.







13



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| |                                                                                                                                                                                             
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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.





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







| |                                                                                                                                                            
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------
| | Risks associated with the NextView Program  We
    may not raise sufficient funds to fund NextView project costs,
    and we may encounter program delays.





14



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









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



|          |  |                      |                                      | 
|--------- |  | -------------------- | ------------------------------------ | 
|Satellite |  | Expected Design Life |                                     
|          |  |                      |                                     
|OrbView-2 |  |                      | 71/2 years (launched in August 1997) | 
|OrbView-3 |  |                      | 5 years (launched in June 2003)      | 







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



15



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





| |   |                                                                                                                                                                                                                                                                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Space Imaging, which operates a high-resolution satellite with
    more advanced technical capabilities than OrbView-3 and has been
    delivering high-resolution imagery to its customers since
    1999; and                                                                                                                                                                                   
|
| |  | DigitalGlobe, which operates a high-resolution satellite with
    higher resolution than OrbView-3 and is currently developing two
    next generation satellites which will have more advanced
    technologies and capabilities than OrbView-3, one of which is
    planned to be in service by 2006, and the other of which we
    expect would go into service within a few months thereafter.







| |                                                                                                                                                                       
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Potential Additional Capital Requirements  Our
    inability to fund potential additional capital requirements
    could delay satellite construction and deployment.





| |   |                                                                                                                                                                                     
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | we do not enter into agreements with new customers, value-added
    resellers or distributors for high-resolution imagery in the
    time frames or on the terms that we anticipate;
|
| |  | we experience net operating deficits because we incur
    significant unanticipated expenses, such as costs for resolving
    satellite operational difficulties;                   
|
| |  | we have to modify all or part of our ground system designs to
    meet changed or unanticipated market, regulatory or technical
    requirements;                                   
|
| |  | we decide to increase our value-added product development
    costs; or                                                                                                             
|
| |  | we decide to further expand the number of satellites we own or
    to acquire additional imagery distribution rights through
    licensing arrangements or otherwise.               



16



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| |                                                                                                              
| | -------------------------------------------------------------------------------------------------------------
| | Government Regulation  Failure to obtain
    regulatory approvals could result in service
    interruptions.

Domestic.






International.






Export License.




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





17



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| |                                                                                                                                                                                                      
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Risk Associated with International Operations 
    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; and                                                                                                                                    
|
| |  | 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.





| |                                                                                                                                                                                                                     
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Financing Change of Control Offer  We may not
    have the ability to raise the funds necessary to finance the
    change of control offer required by the senior note and senior
    subordinated note indentures.








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










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








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



18



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PART II




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









|                                                          |  |                      |     |  |                   |                      |     |                           |  |  |         | 
|--------------------------------------------------------- |  | -------------------- | --- |  | ----------------- | -------------------- | --- | ------------------------- |  |  | ------- | 
|                                                          |  |                      |     |  |                   | 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 | 
|                                                          |  |                      |     |  |                   |                      |     |                           | 



19



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| |                         
| | ------------------------
| | The Bank of New York    
| | 101 Barclay Street      
| | New York, New York 10286



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





|                                              |  |                          |         |   |                     |   |         |      |  |   |         |   |  |      |          |   |  |   |         |  
|--------------------------------------------- |  | ------------------------ | ------- | - | ------------------- | - | ------- | ---- |  | - | ------- | - |  | ---- | -------- | - |  | - | ------- | -
|                                              |  | Successor                |         |   |                    
|                                              |  | Company                  |         |   | Predecessor Company |  
|                                              |  |                          |         |   |                     |  
|                                              |  | Years Ended December 31, |        
|                                              |  |                          |        
|                                              |  | 2004                     |         |   | 2003                |   |         | 2002 |  |   | 2001    |   |  | 2000 |         
|                                              |  |                          |         |   |                     |   |         |      |  |   |         |   |  |      |         
|                                              |  | (In thousands)           |        
|Statement of Operations Data:                 |  |                          |         |   |                     |   |         |      |  |   |         |   |  |      |          |   |  |   |         |  
|Revenues                                      |  | $                        | 31,020  |   |                     | $ | 9,219   |      |  | $ | 15,552  |   |  | $    | 18,755   |   |  | $ | 24,123  |  
|Direct expenses                               |  |                          | 33,754  |   |                     |   | 10,697  |      |  |   | 10,498  |   |  |      | 17,311   |   |  |   | 26,696  |  
|Gross profit (loss)                           |  |                          | (2,734  | ) |                     |   | (1,478  | )    |  |   | 5,054   |   |  |      | 1,444    |   |  |   | (2,573  | )
|Selling, general and administrative expenses  |  |                          | 11,746  |   |                     |   | 4,744   |      |  |   | 4,060   |   |  |      | 9,502    |   |  |   | 9,216   |  
|Asset losses and impairment charges           |  |                          |        |   |                     |   | 18,205  |      |  |   | 5,115   |   |  |      | 138,040  |   |  |   |        |  
|Loss from operations                          |  |                          | (14,480 | ) |                     |   | (24,427 | )    |  |   | (4,121  | ) |  |      | (146,098 | ) |  |   | (11,789 | )
|Interest expense (income), net                |  |                          | 10,259  |   |                     |   | 1,303   |      |  |   | 8,085   |   |  |      | 30,948   |   |  |   | (2,160  | )
|Reorganization items, net                     |  |                          |        |   |                     |   | 110,019 |      |  |   | (18,396 | ) |  |      |         |   |  |   |        |  
|Income (loss) before benefit for income taxes |  |                          | (24,739 | ) |                     |   | 84,289  |      |  |   | (30,602 | ) |  |      | (177,046 | ) |  |   | (9,629  | )
|Benefit for income taxes                      |  |                          |        |   |                     |   |        |      |  |   |        |   |  |      |         |   |  |   | (77     | )
|Net earnings (loss)                           |  | $                        | (24,739 | ) |                     | $ | 84,289  |      |  | $ | (30,602 | ) |  | $    | (177,046 | ) |  | $ | (9,552  | )
|Earnings (loss) per diluted share             |  | $                        | (3.80   | ) |                     | $ | 1.73    |      |  | $ | (1.26   | ) |  | $    | (7.18    | ) |  | $ | (0.96   | )
|Other Data:                                   |  |                          |         |   |                     |   |         |      |  |   |         |   |  |      |          |   |  |   |         |  
|Cash flows from operating activities          |  | $                        | 27.500  |   |                     | $ | (2,987  | )    |  | $ | (5,118  | ) |  | $    | (1,667   | ) |  | $ | (7,298  | )
|Cash flows from investing activities          |  |                          | (3,530  | ) |                     |   | (9,118  | )    |  |   | (1,990  | ) |  |      | 10,922   |   |  |   | 6,589   |  
|Cash flows from financing activities          |  |                          | 22,190  |   |                     |   | 20,217  |      |  |   |        |   |  |      |         |   |  |   |        |  
|Capital expenditures                          |  |                          | 3,530   |   |                     |   | 21,402  |      |  |   | 1,990   |   |  |      | 22,916   |   |  |   | 38,445  |  
|Depreciation and amortization expense         |  |                          | 22,575  |   |                     |   | 3,356   |      |  |   | 6,454   |   |  |      | 13,821   |   |  |   | 14,923  |  
|Interest expense paid in kind                 |  |                          | 11,903  |   |                     |   | 1,403   |      |  |   |        |   |  |      |         |   |  |   |        |  

20



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|                                      |  |                   |         |  |                     |   |         |      |  |   |          |   |  |      |          |   |  |   |         |  
|------------------------------------- |  | ----------------- | ------- |  | ------------------- | - | ------- | ---- |  | - | -------- | - |  | ---- | -------- | - |  | - | ------- | -
|                                      |  | Successor Company |         |  | Predecessor Company |  
|                                      |  |                   |         |  |                     |  
|                                      |  | December 31,      |        
|                                      |  |                   |        
|                                      |  | 2004              |         |  | 2003                |   |         | 2002 |  |   | 2001     |   |  | 2000 |         
|                                      |  |                   |         |  |                     |   |         |      |  |   |          |   |  |      |         
|                                      |  | (In thousands)    |        
|Balance Sheet Data:                   |  |                   |         |  |                     |   |         |      |  |   |          |   |  |      |          |   |  |   |         |  
|Cash and cash equivalents             |  | $                 | 60,565  |  |                     | $ | 14,405  |      |  | $ | 6,293    |   |  | $    | 13,401   |   |  | $ | 4,146   |  
|Total assets                          |  |                   | 249,146 |  |                     |   | 153,319 |      |  |   | 136,578  |   |  |      | 191,475  |   |  |   | 343,829 |  
|Long-term obligations(1)              |  |                   | 85,018  |  |                     |   | 73,115  |      |  |   | 225,000  |   |  |      | 217,829  |   |  |   | 216,154 |  
|Preferred stock subject to repurchase |  |                   |        |  |                     |   |        |      |  |   | 111,150  |   |  |      | 110,039  |   |  |   | 106,103 |  
|Stockholders equity (deficit)        |  |                   | 85,888  |  |                     |   | 74,810  |      |  |   | (221,894 | ) |  |      | (190,186 | ) |  |   | (9,237  | )






|    |                                                                         
|--- | ------------------------------------------------------------------------
|(1) | Net of debt discount for the years ended December 31, 2001
    and 2000.






|        |                                                                                           
|------- | ------------------------------------------------------------------------------------------
|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.


Overview










21



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Chapter 11 Reorganization.


pari passu








22



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NextView Program.








Industry and Business Considerations




23



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Critical Accounting Policies




Revenue Recognition and Contract Accounting.








24



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Receivables.


Long-Lived Assets.


Goodwill.


Results of Operations




25



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Revenues.




Direct Expenses.




Selling, General and Administrative Expenses.


26



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System Depreciation.


Asset Losses and Impairment Charges.




Interest Expense, net.


Reorganization Items.


27



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Benefit for Income Taxes.


Backlog.


Liquidity and Cash Flows








28



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Capital Structure and Resources






29



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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                     |  | $                      | 119,606 |           |        | $ | 9,883  |           |       | $ | 109,723   |  |  | $       |    |  |  | $ |  | 
|Operating lease commitments        |  |                        | 1,393   |           |        |   | 414    |           |       |   | 675       |  |  |         | 304 |  |  |   |  | 
|                                   |  |                        |         |           |        |   |        |           |       |   |           |  |  |         |    
|Total contractual cash obligations |  | $                      | 120,999 |           |        | $ | 10,297 |           |       | $ | 110,398   |  |  | $       | 304 |  |  | $ |  | 
|                                   |  |                        |         |           |        |   |        |           |       |   |           |  |  |         |    









30



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31



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Recent Accounting Pronouncements













|         |                                                            
|-------- | -----------------------------------------------------------
|Item 7A. | Qualitative and Quantitative Disclosure of Market
    Risk.



32



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

ORBIMAGE INC.


INDEX TO FINANCIAL STATEMENTS


|                                                                                      |  |      |    | 
|------------------------------------------------------------------------------------- |  | ---- | -- | 
|                                                                                      |  | Page |   
|                                                                                      |  |      |   
|Report of Independent Registered Public Accounting Firm                               |  |      | 34 | 
|Statements of Operations  Years Ended
    December 31, 2004, 2003 and 2002           |  |      | 35 | 
|Balance Sheets  December 31, 2004 and 2003                                           |  |      | 36 | 
|Statements of Cash Flows  Years Ended
    December 31, 2004, 2003 and 2002           |  |      | 37 | 
|Statements of Stockholders Equity  Years Ended
    December 31, 2004, 2003 and 2002 |  |      | 38 | 
|Notes to Financial Statements                                                         |  |      | 39 | 

33



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Report of Independent Registered Public Accounting Firm












,




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





34



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ORBIMAGE Inc.


STATEMENTS OF OPERATIONS


|                                                                                                                 |                                                                                            |                                   |         |                     |                          |   |         |          |   |   |         |        |  
|---------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------ | --------------------------------- | ------- | ------------------- | ------------------------ | - | ------- | -------- | - | - | ------- | ------ | -
|                                                                                                                 |                                                                                            |                                   |         | Predecessor Company |                         
|                                                                                                                 |                                                                                            | Successor Company                 |         |                     | Years Ended December 31, |  
|                                                                                                                 |                                                                                            | Year Ended                        |         |                     |                          |  
|                                                                                                                 |                                                                                            | December 31, 2004                 |         |                     | 2003                     |   |         | 2002     |  
|                                                                                                                 |                                                                                            |                                   |         |                     |                          |   |         |          |  
|                                                                                                                 |                                                                                            | (In thousands, except share data) |        
|Revenues                                                                                                         |                                                                                            | $                                 | 31,020  |                     |                          | $ | 9,219   |          |   | $ | 15,552  |       
|Direct expenses                                                                                                  |                                                                                            |                                   | 33,754  |                     |                          |   | 10,697  |          |   |   | 10,498  |       
|                                                                                                                 |                                                                                            |                                   |         |                     |                          |   |         |          |  
|Gross (loss) profit                                                                                              |                                                                                            |                                   | (2,734  | )                   |                          |   | (1,478  | )        |   |   | 5,054   |       
|Selling, general and administrative expenses                                                                     |                                                                                            |                                   | 11,746  |                     |                          |   | 4,744   |          |   |   | 4,060   |       
|Asset losses and impairment charges                                                                              |                                                                                            |                                   |        |                     |                          |   | 18,205  |          |   |   | 5,115   |       
|                                                                                                                 |                                                                                            |                                   |         |                     |                          |   |         |          |  
|Loss from operations                                                                                             |                                                                                            |                                   | (14,480 | )                   |                          |   | (24,427 | )        |   |   | (4,121  | )     
|Interest expense, net (excludes contractual interest of $26,156,
    and $19,258 in 2003 and 2002, respectively) |                                                                                            |                                   | 10,259  |                     |                          |   | 1,303   |          |   |   | 8,085   |       
|                                                                                                                 |                                                                                            |                                   |         |                     |                          |   |         |          |  
|Loss before reorganization items and provision (benefit) for
    income taxes                                    |                                                                                            |                                   | (24,739 | )                   |                          |   | (25,730 | )        |   |   | (12,206 | )     
|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    | )
|                                                                                                                 |                                                                                            |                                   |         |                     |                          |   |         |          |  
|Earnings (loss) before provision (benefit) for income taxes                                                      |                                                                                            |                                   | (24,739 | )                   |                          |   | 84,289  |          |   |   | (30,602 | )     
|Provision (benefit) for income taxes                                                                             |                                                                                            |                                   |        |                     |                          |   |        |          |   |   |        |       
|                                                                                                                 |                                                                                            |                                   |         |                     |                          |   |         |          |  
|Net earnings (loss)                                                                                              |                                                                                            | $                                 | (24,739 | )                   |                          | $ | 84,289  |          |   | $ | (30,602 | )     
|                                                                                                                 |                                                                                            |                                   |         |                     |                          |   |         |          |  
|Earnings (loss) per common share  basic                                                                         |                                                                                            | $                                 | (3.80   | )                   |                          | $ | 3.34    |          |   | $ | (1.26   | )     
|Earnings (loss) per common share  diluted                                                                       |                                                                                            | $                                 | (3.80   | )                   |                          | $ | 1.73    |          |   | $ | (1.26   | )     

See accompanying Notes to Financial Statements.


35



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##### 



ORBIMAGE Inc.


BALANCE SHEETS


|                                                                                                                  |                                                                                                                                                                                                          |                                            |         |         |              |  |        |        |         | 
|----------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------ | ------- | ------- | ------------ |  | ------ | ------ | ------- | 
|                                                                                                                  |                                                                                                                                                                                                          | December 31,                               |         |         | December 31, | 
|                                                                                                                  |                                                                                                                                                                                                          | 2004                                       |         |         | 2003         | 
|                                                                                                                  |                                                                                                                                                                                                          |                                            |         |         |              | 
|                                                                                                                  |                                                                                                                                                                                                          | (In thousands,                             |        
|                                                                                                                  |                                                                                                                                                                                                          | except share data)                         |        
|ASSETS                                                                                                           
|Current assets:                                                                                                   |                                                                                                                                                                                                          |                                            |         |         |              |  |        |       
|                                                                                                                  | Cash and cash equivalents                                                                                                                                                                                |                                            | $       | 60,565  |              |  | $      | 14,405 |        
|                                                                                                                  | Receivables net of allowances of $126 and $0, respectively                                                                                                                                               |                                            |         | 12,148  |              |  |        | 756    |        
|                                                                                                                  | Other current assets                                                                                                                                                                                     |                                            |         | 2,612   |              |  |        | 1,143  |        
|                                                                                                                  |                                                                                                                                                                                                          |                                            |         |         |              | 
|                                                                                                                  |                                                                                                                                                                                                          | Total current assets                       |         |         | 75,325       |  |        |        | 16,304  | 
|Property, plant and equipment, less accumulated depreciation of
    $3,751 and $0, respectively                   |                                                                                                                                                                                                          |                                            | 18,263  |         |              |  | 17,714 |       
|Satellites and related rights, less accumulated depreciation and
    amortization of $18,142 and $0, respectively |                                                                                                                                                                                                          |                                            | 116,640 |         |              |  | 89,370 |       
|Goodwill                                                                                                          |                                                                                                                                                                                                          |                                            | 28,490  |         |              |  | 28,490 |       
|Other assets                                                                                                      |                                                                                                                                                                                                          |                                            | 10,428  |         |              |  | 1,441  |       
|                                                                                                                  |                                                                                                                                                                                                          |                                            |         |         |              | 
|                                                                                                                  |                                                                                                                                                                                                          | Total assets                               |         | $       | 249,146      |  |        | $      | 153,319 | 
|                                                                                                                  |                                                                                                                                                                                                          |                                            |         |         |              | 
|                                                                                                                 
|LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT)                                                                   
|Current liabilities:                                                                                              |                                                                                                                                                                                                          |                                            |         |         |              |  |        |       
|                                                                                                                  | Accounts payable and accrued expenses                                                                                                                                                                    |                                            | $       | 3,970   |              |  | $      | 4,743  |        
|                                                                                                                  | Amounts payable to subcontractors                                                                                                                                                                        |                                            |         | 47,545  |              |  |        |       |        
|                                                                                                                  | Deferred revenue                                                                                                                                                                                         |                                            |         | 2,234   |              |  |        | 651    |        
|                                                                                                                  |                                                                                                                                                                                                          |                                            |         |         |              | 
|                                                                                                                  |                                                                                                                                                                                                          | Total current liabilities                  |         |         | 53,749       |  |        |        | 5,394   | 
|Long-term debt                                                                                                    |                                                                                                                                                                                                          |                                            | 85,018  |         |              |  | 73,115 |       
|Deferred revenue, net of current portion                                                                          |                                                                                                                                                                                                          |                                            | 24,491  |         |              |  |       |       
|                                                                                                                  |                                                                                                                                                                                                          |                                            |         |         |              | 
|                                                                                                                  |                                                                                                                                                                                                          | Total liabilities                          |         |         | 163,258      |  |        |        | 78,509  | 
|Stockholders equity:                                                                                             |                                                                                                                                                                                                          |                                            |         |         |              |  |        |       
|                                                                                                                  | Common stock, par value $0.01; 25,000,000 shares
    authorized, 9,917,078 shares issued and outstanding and
    6,332,993 shares issued and outstanding at
    December 31, 2004 and 2003, respectively |                                            |         | 99      |              |  |        | 63     |        
|                                                                                                                  | Additional paid-in-capital                                                                                                                                                                               |                                            |         | 112,373 |              |  |        | 78,149 |        
|                                                                                                                  | Unearned compensation                                                                                                                                                                                    |                                            |         | (1,845  | )            |  |        | (3,402 | )      
|                                                                                                                  | Accumulated deficit                                                                                                                                                                                      |                                            |         | (24,739 | )            |  |        |       |        
|                                                                                                                  |                                                                                                                                                                                                          |                                            |         |         |              | 
|                                                                                                                  |                                                                                                                                                                                                          | Total stockholders equity                 |         |         | 85,888       |  |        |        | 74,810  | 
|                                                                                                                  |                                                                                                                                                                                                          |                                            |         |         |              | 
|                                                                                                                  |                                                                                                                                                                                                          | Total liabilities and stockholders equity |         | $       | 249,146      |  |        | $      | 153,319 | 
|                                                                                                                  |                                                                                                                                                                                                          |                                            |         |         |              | 

See accompanying Notes to Financial Statements.


36



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##### 



ORBIMAGE Inc.


STATEMENTS OF CASH FLOWS


|                                                     |                                                                                                          |                                                             |                                                   |                     |              |   |        |         |          |   |        |         |         |        |  
|---------------------------------------------------- | -------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------- | ------------------------------------------------- | ------------------- | ------------ | - | ------ | ------- | -------- | - | ------ | ------- | ------- | ------ | -
|                                                     |                                                                                                          |                                                             |                                                   | Predecessor Company |             
|                                                     |                                                                                                          | Successor Company                                           |                                                   |                     | Years Ended  |  
|                                                     |                                                                                                          | Year Ended                                                  |                                                   |                     | December 31, |  
|                                                     |                                                                                                          | December 31,                                                |                                                   |                     |              |  
|                                                     |                                                                                                          | 2004                                                        |                                                   |                     | 2003         |   |        | 2002    |         
|                                                     |                                                                                                          |                                                             |                                                   |                     |              |   |        |         |         
|                                                     |                                                                                                          | (In thousands)                                              |                                                  
|Cash flows from operating activities:                |                                                                                                          |                                                             |                                                   |                     |              |   |        |         |          |   |        |        
|                                                     | Net earnings (loss)                                                                                      |                                                             | $                                                 | (24,739             | )            |   | $      | 84,289  |          |   | $      | (30,602 | )      
|                                                     | Adjustments to reconcile net earnings (loss) to net cash
    provided by (used) in operating activities: |                                                             |                                                   |                     |              |   |        |         |          |   |        |         |        
|                                                     |                                                                                                          | Depreciation, amortization and other                        |                                                   |                     | 22,575       |   |        |         | 3,356    |   |        |         | 6,454   |       
|                                                     |                                                                                                          | Interest expense paid in kind                               |                                                   |                     | 11,903       |   |        |         | 1,403    |   |        |         |        |       
|                                                     |                                                                                                          | Stock compensation                                          |                                                   |                     | 3,452        |   |        |         |         |   |        |         |        |       
|                                                     |                                                                                                          | Gain on debt extinguishment                                 |                                                   |                     |             |   |        |         | (116,056 | ) |        |         |        |       
|                                                     |                                                                                                          | Asset losses and impairment charges                         |                                                   |                     |             |   |        |         | 18,205   |   |        |         | 5,134   |       
|                                                     |                                                                                                          | Write off of unamortized debt issuance costs                |                                                   |                     |             |   |        |         |         |   |        |         | 11,252  |       
|                                                     | Changes in assets and liabilities:                                                                       |                                                             |                                                   |                     |              |   |        |         |          |   |        |         |        
|                                                     |                                                                                                          | (Increase) decrease in receivables and other current assets |                                                   |                     | (11,993      | ) |        |         | 5,416    |   |        |         | 34,093  |       
|                                                     |                                                                                                          | Decrease in other assets                                    |                                                   |                     | 1,000        |   |        |         |         |   |        |         | 22      |       
|                                                     |                                                                                                          | Decrease in accounts payable and accrued expenses           |                                                   |                     | (773         | ) |        |         | (181     | ) |        |         | (23,084 | )     
|                                                     |                                                                                                          | Increase (decrease) in deferred revenue                     |                                                   |                     | 26,075       |   |        |         | 581      |   |        |         | (1,953  | )     
|                                                     |                                                                                                          | Decrease in obligations to related parties                  |                                                   |                     |             |   |        |         |         |   |        |         | (169    | )     
|                                                     |                                                                                                          | Liabilities subject to compromise:                          |                                                   |                     |              |   |        |         |          |   |        |         |         |       
|                                                     |                                                                                                          |                                                             | Decrease in accounts payable and accrued expenses |                     |              |  |        |         |          |  |        |         |         | (982   | )
|                                                     |                                                                                                          |                                                             | Decrease in deferred revenue                      |                     |              |  |        |         |          |  |        |         |         | (5,283 | )
|                                                     |                                                                                                          |                                                             |                                                   |                     |              |   |        |         |         
|                                                     | Net cash provided by (used) in operating activities                                                      |                                                             |                                                   | 27,500              |              |   |        | (2,987  | )        |   |        | (5,118  | )      
|Cash flows from investing activities:                |                                                                                                          |                                                             |                                                   |                     |              |   |        |         |          |   |        |        
|                                                     | Capital expenditures                                                                                     |                                                             |                                                   | (3,530              | )            |   |        | (21,402 | )        |   |        | (1,990  | )      
|                                                     | Proceeds from sale of satellite license                                                                  |                                                             |                                                   |                    |              |   |        | 10,000  |          |   |        |        |        
|                                                     | Proceeds from launch delay penalties                                                                     |                                                             |                                                   |                    |              |   |        | 2,284   |          |   |        |        |        
|                                                     |                                                                                                          |                                                             |                                                   |                     |              |   |        |         |         
|                                                     | Net cash used in investing activities                                                                    |                                                             |                                                   | (3,530              | )            |   |        | (9,118  | )        |   |        | (1,990  | )      
|Cash flows from financing activities:                |                                                                                                          |                                                             |                                                   |                     |              |   |        |         |          |   |        |        
|                                                     | Prepaid financing costs                                                                                  |                                                             |                                                   | (10,174             | )            |   |        |        |          |   |        |        |        
|                                                     | Issuance of common stock                                                                                 |                                                             |                                                   | 32,364              |              |   |        |        |          |   |        |        |        
|                                                     | Proceeds from insurance loan                                                                             |                                                             |                                                   |                    |              |   |        | 17,717  |          |   |        |        |        
|                                                     | Proceeds from Orbital Sciences note                                                                      |                                                             |                                                   |                    |              |   |        | 2,500   |          |   |        |        |        
|                                                     |                                                                                                          |                                                             |                                                   |                     |              |   |        |         |         
|                                                     | Net cash provided by financing activities                                                                |                                                             |                                                   | 22,190              |              |   |        | 20,217  |          |   |        |        |        
|Net increase (decrease) in cash and cash equivalents |                                                                                                          |                                                             | 46,160                                            |                     |              |   | 8,112  |         |          |   | (7,108 | )      
|Cash and cash equivalents, beginning of year         |                                                                                                          |                                                             | 14,405                                            |                     |              |   | 6,293  |         |          |   | 13,401 |        
|                                                     |                                                                                                          |                                                             |                                                   |                     |              |   |        |         |         
|Cash and cash equivalents, end of year               |                                                                                                          | $                                                           | 60,565                                            |                     |              | $ | 14,405 |         |          | $ | 6,293  |        
|                                                     |                                                                                                          |                                                             |                                                   |                     |              |   |        |         |         
|Supplemental cash flow information:                  |                                                                                                          |                                                             |                                                   |                     |              |   |        |         |          |   |        |        
|                                                     | Interest paid                                                                                            |                                                             | $                                                 |                    |              |   | $      |        |          |   | $      | 34,292  |        
|                                                     |                                                                                                          |                                                             |                                                   |                     |              |   |        |         |         
|Non-cash items:                                      |                                                                                                          |                                                             |                                                   |                     |              |   |        |         |          |   |        |        
|                                                     | Capital expenditures                                                                                     |                                                             | $                                                 | (47,545             | )            |   | $      |        |          |   | $      |        |        
|                                                     | Amounts payable to subcontractors                                                                        |                                                             |                                                   | 47,545              |              |   |        |        |          |   |        |        |        
|                                                     | Preferred stock dividends                                                                                |                                                             |                                                   |                    |              |   |        |        |          |   |        | 1,111   |        

See accompanying Notes to Financial Statements


37



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##### 



ORBIMAGE Inc.


STATEMENTS OF STOCKHOLDERS EQUITY


|                                                                                              |                                                                                     |                                   |             |           |            |   |      |          |   |   |              |        |   |         |        |       |       |   |          |         |         |   |          |         |         |  
|--------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------- | --------------------------------- | ----------- | --------- | ---------- | - | ---- | -------- | - | - | ------------ | ------ | - | ------- | ------ | ----- | ----- | - | -------- | ------- | ------- | - | -------- | ------- | ------- | -
|                                                                                              |                                                                                     | Common Stock                      |             |           | Additional |   |      |          |   |   |              |       
|                                                                                              |                                                                                     |                                   |             |           | Paid-In    |   |      | Unearned |   |   | Accumulated  |        |   |        
|                                                                                              |                                                                                     | Shares                            |             |           | Amount     |   |      | Capital  |   |   | Compensation |        |   | Deficit |        |       | Total |  
|                                                                                              |                                                                                     |                                   |             |           |            |   |      |          |   |   |              |        |   |         |        |       |       |  
|                                                                                              |                                                                                     | (In thousands, except share data) |            
|Balance as of December 31, 2001                                                               |                                                                                     |                                   | 25,214,000  |           |            | $ | 252  |          |   | $ | 87,502       |        |   | $       |       |       |       | $ | (277,940 | )       |         | $ | (190,186 | )      
|Issuance of stock options                                                                     |                                                                                     |                                   |            |           |            |   |     |          |   |   | 5            |        |   |         |       |       |       |   |         |         |         |   | 5        |        
|                                                                                              |                                                                                     | Preferred stock dividends         |             |           |           |   |      |          |  |   |              |        |  |         |        |       |      |   |          |         | (1,111  | ) |          |         | (1,111  | )
|                                                                                              |                                                                                     | Net loss                          |             |           |           |   |      |          |  |   |              |        |  |         |        |       |      |   |          |         | (30,602 | ) |          |         | (30,602 | )
|                                                                                              |                                                                                     |                                   |             |           |            |   |      |          |   |   |              |        |   |         |        |       |       |  
|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  ORBIMAGE Inc. 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   |        
|                                                                                              |                                                                                     |                                   |             |           |            |   |      |          |   |   |              |        |   |         |        |       |       |  

See accompanying Notes to Financial Statements.


38



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##### 



ORBIMAGE Inc.


NOTES TO FINANCIAL STATEMENTS


DECEMBER 31, 2004




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







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





39



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##### 



ORBIMAGE Inc.


NOTES TO FINANCIAL STATEMENTS  (Continued)






|    |                                
|--- | -------------------------------
|(2) | Significant Accounting Policies



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







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





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





40



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##### 



ORBIMAGE Inc.


NOTES TO FINANCIAL STATEMENTS  (Continued)












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





|                                                               |  |           |         |   |                     |   |        |      |  |   |         |  
|-------------------------------------------------------------- |  | --------- | ------- | - | ------------------- | - | ------ | ---- |  | - | ------- | -
|                                                               |  | Successor |         |   | Predecessor Company |  
|                                                               |  | Company   |         |   |                     |  
|                                                               |  | 2004      |         |   | 2003                |   |        | 2002 | 
|                                                               |  |           |         |   |                     |   |        |      | 
|Net earnings (loss):                                           |  |           |         |   |                     |   |        |      |  |   |         |  
|Net earnings (loss) available to common stockholders           |  | $         | (24,739 | ) |                     | $ | 84,289 |      |  | $ | (31,713 | )
|Fair value-based compensation cost, net of taxes               |  |           | (595    | ) |                     |   |       |      |  |   |        |  
|                                                               |  |           |         |   |                     |   |        |      | 
|Pro forma net earnings (loss) available to common stockholders |  | $         | (25,334 | ) |                     | $ | 84,289 |      |  | $ | (31,713 | )
|                                                               |  |           |         |   |                     |   |        |      | 
|Earnings (loss) per common share  basic                       |  |           |         |   |                     |   |        |      |  |   |         |  
|As reported                                                    |  | $         | (3.80   | ) |                     | $ | 3.34   |      |  | $ | (1.26   | )
|                                                               |  |           |         |   |                     |   |        |      | 
|Pro forma                                                      |  | $         | (3.89   | ) |                     | $ | 3.34   |      |  | $ | (1.26   | )
|                                                               |  |           |         |   |                     |   |        |      | 
|Earnings (loss) per common share  diluted                     |  |           |         |   |                     |   |        |      |  |   |         |  
|As reported                                                    |  | $         | (3.80   | ) |                     | $ | 1.73   |      |  | $ | (1.26   | )
|                                                               |  |           |         |   |                     |   |        |      | 
|Pro forma                                                      |  | $         | (3.89   | ) |                     | $ | 1.73   |      |  | $ | (1.26   | )
|                                                               |  |           |         |   |                     |   |        |      | 

41



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##### 



ORBIMAGE Inc.


NOTES TO FINANCIAL STATEMENTS  (Continued)






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





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





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





| |                         
| | ------------------------
| | Goodwill and Intangibles







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



42



---



##### 



ORBIMAGE Inc.


NOTES TO FINANCIAL STATEMENTS  (Continued)






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





|                        |  |                                                        
|----------------------- |  | -------------------------------------------------------
|Ground system assets    |  | 8 years                                                
|Furniture and equipment |  | 3 to 7 years                                           
|OrbView-2               |  | 7 1/2 years                                            
|OrbView-3               |  | 5 years                                                
|Leasehold improvements  |  | Shorter of estimated useful life of lease or lease term



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









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





43



---



##### 



ORBIMAGE Inc.


NOTES TO FINANCIAL STATEMENTS  (Continued)






44



---



##### 



ORBIMAGE Inc.


NOTES TO FINANCIAL STATEMENTS  (Continued)




|                                   |                           |                                                       |                      |                           |           |        |           |             |          |        |                   |     |          |        |        |        |         |        |       | 
|---------------------------------- | ------------------------- | ----------------------------------------------------- | -------------------- | ------------------------- | --------- | ------ | --------- | ----------- | -------- | ------ | ----------------- | --- | -------- | ------ | ------ | ------ | ------- | ------ | ----- | 
|                                   |                           | Predecessor                                           |                      |                           |           |        | Successor |            
|                                   |                           | Company                                               |                      |                           | Debt      |        |           | Fresh-Start |          |        | Company           |    
|Condensed Balance Sheet            |                           | December 31, 2003                                     |                      |                           | Discharge |        |           | Adjustments |          |        | December 31, 2003 |    
|                                   |                           |                                                       |                      |                           |           |        |           |             |          |        |                   |    
|Current assets:                    |                           |                                                       |                      |                           |           |        |           |             |          |        |                   |     |          |        |        |       
|                                   | Cash and cash equivalents |                                                       | $                    | 14,405                    |           |        | $         |            |          |        | $                 |    |          |        | $      | 14,405 |        
|                                   | Receivables, net          |                                                       |                      | 784                       |           |        |           | (28         | )(a)     |        |                   |     |          |        |        | 756    |        
|                                   | Other current assets      |                                                       |                      | 1,143                     |           |        |           |            |          |        |                   |    |          |        |        | 1,143  |        
|                                   |                           |                                                       |                      |                           |           |        |           |             |          |        |                   |    
|                                   |                           |                                                       | Total current assets |                           |           | 16,332 |           |             |          | (28    | )                 |     |          |       |        |        |         | 16,304 |      
|Property, plant and equipment, net |                           |                                                       | 17,714               |                           |           |        |          |             |          |        |                  |     |          |        | 17,714 |       
|Satellites and related rights, net |                           |                                                       | 89,370               |                           |           |        |          |             |          |        |                  |     |          |        | 89,370 |       
|Goodwill                           |                           |                                                       | 1,974                |                           |           |        |          |             |          |        | 26,516            | (A) |          |        | 28,490 |       
|Other assets                       |                           |                                                       | 1,441                |                           |           |        |          |             |          |        |                  |     |          |        | 1,441  |       
|                                   |                           |                                                       |                      |                           |           |        |           |             |          |        |                   |    
|                                   |                           | Total assets                                          |                      | $                         | 126,831   |        |           | $           | (28      | )      |                   | $   | 26,516   |        |        | $      | 153,319 |       
|                                   |                           |                                                       |                      |                           |           |        |           |             |          |        |                   |    
|Current liabilities:               |                           |                                                       |                      |                           |           |        |           |             |          |        |                   |     |          |        |        |       
|                                   |                           | Accounts payable and accrued expenses (post petition) |                      | $                         | 4,743     |        |           | $           |         |        |                   | $   |         |        |        | $      | 4,743   |       
|                                   |                           | Deferred revenue                                      |                      |                           | 651       |        |           |             |         |        |                   |     |         |        |        |        | 651     |       
|                                   |                           | Liabilities subject to compromise (pre-petition)      |                      |                           | 242,309   |        |           |             | (242,309 | )(a)   |                   |     |         |        |        |        |        |       
|                                   |                           |                                                       |                      |                           |           |        |           |             |          |        |                   |    
|                                   |                           |                                                       |                      | Total current liabilities |           |        | 247,703   |             |          |        | (242,309          | )   |          |        |       |        |         |        | 5,394 | 
|Long-term debt                     |                           |                                                       | 21,640               |                           |           |        | (21,640   | )(a,b)      |          |        |                  |     |          |        | 73,115 |       
|                                   |                           |                                                       |                      |                           |           |        | 73,115    | (a,b)       |          |        |                   |     |          |        |        |       
|Series A preferred stock           |                           |                                                       | 111,150              |                           |           |        | (111,150  | )(c)        |          |        |                  |     |          |        |       |       
|Stockholders equity:              |                           |                                                       |                      |                           |           |        |           |             |          |        |                   |     |          |        |        |       
|                                   |                           | Common stock                                          |                      |                           | 252       |        |           |             | (192     | )(c,d) |                   |     | 3        | (B)    |        |        | 63      |       
|                                   |                           | Additional paid-in-capital                            |                      |                           | 87,507    |        |           |             | 111,342  | (c,d)  |                   |     | (120,700 | )(A,B) |        |        | 78,149  |       
|                                   |                           | Unearned compensation                                 |                      |                           |          |        |           |             |         |        |                   |     | (3,402   | )(B)   |        |        | (3,402  | )     
|                                   |                           | Accumulated deficit                                   |                      |                           | (341,421  | )      |           |             | 190,806  | (a,b)  |                   |     | 150,615  | (A)    |        |        |        |       
|                                   |                           |                                                       |                      |                           |           |        |           |             |          |        |                   |    
|                                   |                           | Total stockholders equity (deficit)                  |                      |                           | (253,662  | )      |           |             | 301,956  |        |                   |     | 26,516   |        |        |        | 74,810  |       
|                                   |                           |                                                       |                      |                           |           |        |           |             |          |        |                   |    
|                                   |                           | Total liabilities and stockholders equity (deficit)  |                      | $                         | 126,831   |        |           | $           | (28      | )      |                   | $   | 26,516   |        |        | $      | 153,319 |       
|                                   |                           |                                                       |                      |                           |           |        |           |             |          |        |                   |    








|    |                                                                                                                                                                                                                                                                        
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|a  | To reflect discharge of the disputed liabilities and liabilities
    subject to compromise per the POR.                                                                                                                                                                
|   
|b  | To record the cancellation of the $19.1 million Insurance
    Loan and issuance of $19.1 million of Senior Notes to the
    holders of the Insurance Loan and $54.0 million of Senior
    Subordinated Notes to the qualified creditors of the Predecessor
    Company.
|   
|c  | To reflect the discharge of the preferred stock. All preferred
    stock was cancelled and warrants exercisable at $28.22 per
    warrant were issued pro-rata to the preferred stockholders.                                                                          
|   
|d  | To record the cancellation of Predecessor Companys common
    stock (25.2 million shares) and issuance of Successor
    Companys common stock (6.0 million shares).                                                                                                  



|    |                                                                                                                                                                                                                                                                  
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|A  | To record fresh start adjustments to eliminate accumulated
    deficit and record goodwill per the independent fair market
    valuation. Reorganization value in excess of the fair value of
    identified assets was recorded to reflect the enterprise value.



|    |                                                    
|--- | ---------------------------------------------------
|B  | To record the issuance of a restricted stock grant.

45



---



##### 



ORBIMAGE Inc.


NOTES TO FINANCIAL STATEMENTS  (Continued)




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







pari passu




46



---



##### 



ORBIMAGE Inc.


NOTES TO FINANCIAL STATEMENTS  (Continued)






|    |                                   
|--- | ----------------------------------
|(5) | Relationship with Orbital Sciences











47



---



##### 



ORBIMAGE Inc.


NOTES TO FINANCIAL STATEMENTS  (Continued)




pari passu








48



---



##### 



ORBIMAGE Inc.


NOTES TO FINANCIAL STATEMENTS  (Continued)




|    |                                    
|--- | -----------------------------------
|(6) | Asset Losses and Impairment Charges



| |                                   
| | ----------------------------------
| | Loss on Sale of RadarSat-2 License





| |                  
| | -----------------
| | Asset Impairments





|    |                            
|--- | ---------------------------
|(7) | Comprehensive Income (Loss)



49



---



##### 



ORBIMAGE Inc.


NOTES TO FINANCIAL STATEMENTS  (Continued)




|    |                                 
|--- | --------------------------------
|(8) | Earnings (Loss) Per Common Share



|                                                                                                               |                           |                   |           |         |                     |   |            |        |  |   |            |         |  
|-------------------------------------------------------------------------------------------------------------- | ------------------------- | ----------------- | --------- | ------- | ------------------- | - | ---------- | ------ |  | - | ---------- | ------- | -
|                                                                                                               |                           | Successor Company |           |         | Predecessor Company |  
|                                                                                                               |                           |                   |           |         |                     |  
|                                                                                                               |                           | 2004              |           |         | 2003                |   |            | 2002   | 
|                                                                                                               |                           |                   |           |         |                     |   |            |        | 
|Numerator for basic and diluted earnings (loss) per common
    share:                                          |                           |                   |           |         |                     |   |            |        |  |   |            |        
|                                                                                                               | Net earnings (loss)       |                   | $         | (24,739 | )                   |   | $          | 84,289 |  |   | $          | (30,602 | )
|                                                                                                               | Preferred stock dividends |                   |           |        |                     |   |            |       |  |   |            | (1,111  | )
|                                                                                                               |                           |                   |           |         |                     |   |            |        | 
|Net earnings (loss) available to common stockholders                                                           |                           | $                 | (24,739   | )       |                     | $ | 84,289     |        |  | $ | (31,713    | )      
|                                                                                                               |                           |                   |           |         |                     |   |            |        | 
|Denominator for basic and diluted earnings (loss) per common
    share:                                        |                           |                   |           |         |                     |   |            |        |  |   |            |        
|Average number of common shares outstanding for basic
    computations                                         |                           |                   | 6,513,231 |         |                     |   | 25,214,000 |        |  |   | 25,214,000 |        
|Average number of common shares assuming conversion of
    Series A 12% cumulative convertible preferred stock |                           |                   | n/a       |         |                     |   | 23,389,664 |        |  |   | (a         | )      
|                                                                                                               |                           |                   |           |         |                     |   |            |        | 
|Average number of common shares outstanding for diluted
    computations                                       |                           |                   | 6,513,231 |         |                     |   | 48,603,664 |        |  |   | 25,214,000 |        
|Earnings (loss) per common share  basic                                                                       |                           | $                 | (3.80     | )       |                     | $ | 3.34       |        |  | $ | (1.26      | )      
|                                                                                                               |                           |                   |           |         |                     |   |            |        | 
|Earnings (loss) per common share  diluted(b)                                                                  |                           | $                 | (3.80     | )       |                     | $ | 1.73       |        |  | $ | (1.26      | )      
|                                                                                                               |                           |                   |           |         |                     |   |            |        | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | The effect of the conversion of the Series A preferred
    stock is antidilutive for the year ended December 31, 2002.                                                                                                                                                                                                                                                                                                                                    
|   
|(b) | 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 year ended
    December 31, 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.



|    |                              
|--- | -----------------------------
|(9) | Property, Plant and Equipment



|                                          |       |           |        |        |           |   |        |        | 
|----------------------------------------- | ----- | --------- | ------ | ------ | --------- | - | ------ | ------ | 
|                                          |       | Successor |        |        | Successor |  
|                                          |       | Company   |        |        | Company   |  
|                                          |       | 2004      |        |        | 2003      |  
|                                          |       |           |        |        |           |  
|Land                                      |       | $         | 213    |        |           | $ | 213    |       
|Ground system assets                      |       |           | 19,289 |        |           |   | 16,068 |       
|Furniture and equipment                   |       |           | 1,968  |        |           |   | 897    |       
|Leasehold improvements                    |       |           | 544    |        |           |   | 536    |       
|Accumulated depreciation and amortization |       |           | (3,751 | )      |           |   |       |       
|                                          |       |           |        |        |           |  
|                                          | Total |           | $      | 18,263 |           |   | $      | 17,714 | 
|                                          |       |           |        |        |           |  

50



---



##### 



ORBIMAGE Inc.


NOTES TO FINANCIAL STATEMENTS  (Continued)






|     |                              
|---- | -----------------------------
|(10) | Satellites and Related Rights



|                      |                                           |           |        |         |           |  |        |       |        | 
|--------------------- | ----------------------------------------- | --------- | ------ | ------- | --------- |  | ------ | ----- | ------ | 
|                      |                                           | Successor |        |         | Successor | 
|                      |                                           | Company   |        |         | Company   | 
|                      |                                           | 2004      |        |         | 2003      | 
|                      |                                           |           |        |         |           | 
|In service:           |                                           |           |        |         |           |  |        |      
|                      | OrbView-2 License                         |           | $      | 3,054   |           |  | $      | 3,054 |       
|                      | OrbView-3 Satellite                       |           |        | 86,468  |           |  |        |      |       
|                      | Accumulated depreciation and amortization |           |        | (18,142 | )         |  |        |      |       
|                      |                                           |           |        |         |           | 
|                      |                                           |           | 71,380 |         |           |  | 3,054  |      
|Satellites in process |                                           |           | 45,260 |         |           |  | 86,316 |      
|                      |                                           |           |        |         |           | 
|                      |                                           | Total     |        | $       | 116,640   |  |        | $     | 89,370 | 
|                      |                                           |           |        |         |           | 





|     |             
|---- | ------------
|(11) | Income Taxes



|                                   |  |           |        |   |             |   |         |             |  |   |        |  
|---------------------------------- |  | --------- | ------ | - | ----------- | - | ------- | ----------- |  | - | ------ | -
|                                   |  | Successor |        |   | Predecessor |   |         | Predecessor | 
|                                   |  | Company   |        |   | Company     |   |         | Company     | 
|                                   |  | 2004      |        |   | 2003        |   |         | 2002        | 
|                                   |  |           |        |   |             |   |         |             | 
|U.S. Federal tax at statutory rate |  | $         | (8,411 | ) |             | $ | 24,833  |             |  | $ | (6,579 | )
|State income taxes, net            |  |           | (1,041 | ) |             |   | 3,068   |             |  |   | (813   | )
|Valuation allowance                |  |           | 9,452  |   |             |   | (27,901 | )           |  |   | 7,392  |  
|Other                              |  |           |       |   |             |   |        |             |  |   |       |  
|                                   |  |           |        |   |             |   |         |             | 
|Total tax provision                |  | $         |       |   |             | $ |        |             |  | $ |       |  
|                                   |  |           |        |   |             |   |         |             | 

51



---



##### 



ORBIMAGE Inc.


NOTES TO FINANCIAL STATEMENTS  (Continued)




|                                     |                                 |           |         |        |           |   |         |        |  
|------------------------------------ | ------------------------------- | --------- | ------- | ------ | --------- | - | ------- | ------ | -
|                                     |                                 | Successor |         |        | Successor |  
|                                     |                                 | Company   |         |        | Company   |  
|                                     |                                 | 2004      |         |        | 2003      |  
|                                     |                                 |           |         |        |           |  
|Deferred tax assets related to:      |                                 |           |         |        |           |   |         |       
|                                     | Net operating loss carryforward |           | $       | 60,318 |           |   | $       | 50,516 |  
|                                     | Property, plant and equipment   |           |         | 7,125  |           |   |         | 7,453  |  
|                                     | Other                           |           |         | 606    |           |   |         | 558    |  
|                                     |                                 |           |         |        |           |  
|Deferred tax assets                  |                                 |           | 68,049  |        |           |   | 58,527  |       
|Less: valuation allowance            |                                 |           | (67,961 | )      |           |   | (58,367 | )     
|                                     |                                 |           |         |        |           |  
|Net deferred tax assets              |                                 |           | 88      |        |           |   | 160     |       
|Deferred tax liabilities related to: |                                 |           |         |        |           |   |         |       
|                                     | Amortization                    |           |         | (88    | )         |   |         | (160   | )
|                                     |                                 |           |         |        |           |  
|Net deferred tax assets              |                                 | $         |        |        |           | $ |        |       
|                                     |                                 |           |         |        |           |  





|     |               
|---- | --------------
|(12) | Long-Term Debt



|                          |       |               |               |           |      |   |           |        |  |   |        |        | 
|------------------------- | ----- | ------------- | ------------- | --------- | ---- | - | --------- | ------ |  | - | ------ | ------ | 
|                          |       |               |               | Successor |      |   | Successor |       
|                          |       |               |               | Company   |      |   | Company   |       
|                          |       | Maturity Date |               |           | 2004 |   |           | 2003   | 
|                          |       |               |               |           |      |   |           |        | 
|Senior Subordinated Notes |       |               | June 30, 2008 |           |      | $ | 62,774    |        |  | $ | 53,995 |       
|Senior Notes              |       |               | June 30, 2008 |           |      |   | 22,244    |        |  |   | 19,120 |       
|                          |       |               |               |           |      |   |           |        | 
|                          | Total |               |               |           |      |   | $         | 85,018 |  |   | $      | 73,115 | 
|                          |       |               |               |           |      |   |           |        | 





52



---



##### 



ORBIMAGE Inc.


NOTES TO FINANCIAL STATEMENTS  (Continued)
















pari passu


53



---



##### 



ORBIMAGE Inc.


NOTES TO FINANCIAL STATEMENTS  (Continued)










|     |       
|---- | ------
|(13) | Leases



|           |  |   |       | 
|---------- |  | - | ----- | 
|2005       |  | $ | 414   | 
|2006       |  |   | 229   | 
|2007       |  |   | 224   | 
|2008       |  |   | 222   | 
|2009       |  |   | 215   | 
|Thereafter |  |   | 89    | 
|           |  |   |      
|           |  | $ | 1,393 | 
|           |  |   |      





|     |                      
|---- | ---------------------
|(14) | Employee Benefit Plan





|     |              
|---- | -------------
|(15) | Capital Stock



54



---



##### 



ORBIMAGE Inc.


NOTES TO FINANCIAL STATEMENTS  (Continued)




|                           |  |      |          |  |      |  |          | 
|-------------------------- |  | ---- | -------- |  | ---- |  | -------- | 
|                           |  | 2004 |          |  | 2003 | 
|                           |  |      |          |  |      | 
|Volatility                 |  |      | 47.3%    |  |      |  | 41.0%    | 
|Dividend yield             |  |      | 0.00%    |  |      |  | 0.0%     | 
|Risk-free interest rate    |  |      | 3.6%     |  |      |  | 3.2%     | 
|Expected average life      |  |      | 4  years |  |      |  | 5  years | 
|Exercise price per warrant |  |      | $28.22   |  |      |  | $28.22   | 





|     |                      
|---- | ---------------------
|(16) | Stock Incentive Plans





55



---



##### 



ORBIMAGE Inc.


NOTES TO FINANCIAL STATEMENTS  (Continued)




|                                           |  |      |           | 
|------------------------------------------ |  | ---- | --------- | 
|                                           |  | 2004 |          
|                                           |  |      |          
|Volatility                                 |  |      | 47.3%     | 
|Dividend yield                             |  |      | 0.00%     | 
|Risk-free interest rate                    |  |      | 4.2%      | 
|Expected average life                      |  |      | 10  years | 
|Weighted average exercise price per option |  |      | $7.33     | 



|                                    |  |           |         |   |              |          |            |                |             |   |             |  |  |  |        | 
|----------------------------------- |  | --------- | ------- | - | ------------ | -------- | ---------- | -------------- | ----------- | - | ----------- |  |  |  | ------ | 
|                                    |  |           |         |   |              | Weighted |            |                | Outstanding |  
|                                    |  | Number of |         |   | Option Price |          |            | Average        |             |   | and         | 
|                                    |  | Shares    |         |   | Per Share    |          |            | Exercise Price |             |   | Exercisable | 
|                                    |  |           |         |   |              |          |            |                |             |   |             | 
|Outstanding as of December 31, 2003 |  |           |        |   |              |          |           |                |             |   |            |  |  |  |       | 
|Granted                             |  |           | 317,559 |   |              |          | 6.50-18.25 |                |             |   | 7.33        |  |  |  |        | 
|Cancelled or expired                |  |           | (687    | ) |              |          | 6.50       |                |             |   | 6.50        |  |  |  |        | 
|                                    |  |           |         |   |              |          |            |                |             |   |             | 
|Outstanding as of December 31, 2004 |  |           | 316,872 |   |              | $        | 6.50-18.25 |                |             | $ | 7.33        |  |  |  | 59,059 | 
|                                    |  |           |         |   |              |          |            |                |             |   |             | 





|                                    |  |           |            |   |              |          |           |                |             |   |             |  |  |  |           | 
|----------------------------------- |  | --------- | ---------- | - | ------------ | -------- | --------- | -------------- | ----------- | - | ----------- |  |  |  | --------- | 
|                                    |  |           |            |   |              | Weighted |           |                | Outstanding |  
|                                    |  | Number of |            |   | Option Price |          |           | Average        |             |   | and         | 
|                                    |  | Shares    |            |   | Per Share    |          |           | Exercise Price |             |   | Exercisable | 
|                                    |  |           |            |   |              |          |           |                |             |   |             | 
|Outstanding as of December 31, 2001 |  |           | 3,019,227  |   |              |          | 1.50-7.25 |                |             |   | 4.10        |  |  |  | 2,381,318 | 
|Canceled or expired                 |  |           | (678,647   | ) |              |          | 1.50-7.25 |                |             |   | 4.21        |  |  |  |           | 
|                                    |  |           |            |   |              |          |           |                |             |   |             | 
|Outstanding as of December 31, 2002 |  |           | 2,340,580  |   |              |          | 1.50-7.25 |                |             |   | 4.10        |  |  |  | 2,215,266 | 
|Canceled or expired                 |  |           | (2,340,580 | ) |              |          | 1.50-7.25 |                |             |   | 4.10        |  |  |  |           | 
|                                    |  |           |            |   |              |          |           |                |             |   |             | 
|Outstanding as of December 31, 2003 |  |           |           |   |              | $        |          |                |             | $ |            |  |  |  |          | 
|                                    |  |           |            |   |              |          |           |                |             |   |             | 





|     |                                                     
|---- | ----------------------------------------------------
|(17) | Information on Industry Segments and Major Customers



56



---



##### 



ORBIMAGE Inc.


NOTES TO FINANCIAL STATEMENTS  (Continued)




|         |  |           |        |  |  |             |   |       |             |  |   |        | 
|-------- |  | --------- | ------ |  |  | ----------- | - | ----- | ----------- |  | - | ------ | 
|         |  | Successor |        |  |  | Predecessor |   |       | Predecessor | 
|         |  | Company   |        |  |  | Company     |   |       | Company     | 
|         |  |           |        |  |  |             |   |       |             | 
|         |  | 2004      |        |  |  | 2003        |   |       | 2002        | 
|         |  |           |        |  |  |             |   |       |             | 
|Domestic |  | $         | 16,567 |  |  |             | $ | 3,525 |             |  | $ | 13,115 | 
|Foreign  |  |           | 14,453 |  |  |             |   | 5,694 |             |  |   | 2,437  | 
|         |  |           |        |  |  |             |   |       |             | 
|Total    |  | $         | 31,020 |  |  |             | $ | 9,219 |             |  | $ | 15,552 | 
|         |  |           |        |  |  |             |   |       |             | 









|     |                                             
|---- | --------------------------------------------
|(18) | Summary of Quarterly Information (Unaudited)

|                          |  |                                   |        |   |        |   |        |       |  |   |        |   |  |   |        |  
|------------------------- |  | --------------------------------- | ------ | - | ------ | - | ------ | ----- |  | - | ------ | - |  | - | ------ | -
|                          |  | Successor Company                 |       
|                          |  |                                   |       
|                          |  | 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  | )

57



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##### 



ORBIMAGE Inc.


NOTES TO FINANCIAL STATEMENTS  (Continued)


|                                     |  |                                   |        |   |        |   |        |       |  |   |        |   |  |   |        |  
|------------------------------------ |  | --------------------------------- | ------ | - | ------ | - | ------ | ----- |  | - | ------ | - |  | - | ------ | -
|                                     |  | Successor Company                 |       
|                                     |  |                                   |       
|                                     |  | 2004 Quarters                     |       
|                                     |  |                                   |       
|                                     |  | First                             |        |   | Second |   |        | Third |  |   | Fourth |  
|                                     |  |                                   |        |   |        |   |        |       |  |   |        |  
|                                     |  | (In thousands, except share data) |       
|Revenues                             |  | $                                 | 1,690  |   |        | $ | 1,302  |       |  | $ | 1,134  |   |  | $ | 5,093  |  
|Gross profit (loss)                  |  |                                   | (24    | ) |        |   | (336   | )     |  |   | (931   | ) |  |   | (187   | )
|Net loss                             |  |                                   | (2,744 | ) |        |   | (2,996 | )     |  |   | (4,640 | ) |  |   | 94,669 |  
|Earnings (loss) per diluted share(a) |  |                                   | (0.11  | ) |        |   | (0.12  | )     |  |   | (0.18  | ) |  |   | 1.95   |  






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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. For 2003, the sum of each
    quarters earnings (loss) per diluted share does not equal
    earnings per diluted share reported for the full year due to the
    antidilutive effect of the assumed conversion of the
    Series A preferred stock in the first three quarters of
    2003.



| |                     
| | --------------------
| | Fourth Quarter Items



58



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##### 





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





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







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



59



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##### 



PART III




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

Directors of ORBIMAGE




|                     |  |     |    |  |          |                                                
|-------------------- |  | --- | -- |  | -------- | -----------------------------------------------
|Name                 |  | Age |    |  | Position
|                     |  |     |    |  |         
|James A. Abrahamson  |  |     | 71 |  |          | Chairman of the Board, Director                
|Matthew M. OConnell |  |     | 52 |  |          | President, Chief Executive Officer and Director
|Joseph M. Ahearn     |  |     | 50 |  |          | Director                                       
|Talton R. Embry      |  |     | 58 |  |          | Director                                       
|Lawrence A. Hough    |  |     | 60 |  |          | Director                                       
|John W. Pitts        |  |     | 55 |  |          | Director                                       
|William W. Sprague   |  |     | 47 |  |          | Director                                       



General (Ret.) James A. Abrahamson






Matthew M. OConnell






60



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##### 



Joseph M. Ahearn








Talton R. Embry








Lawrence A. Hough








John W. Pitts








William W. Sprague






61



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##### 





Audit Committee Financial Expert




Executive Officers who are not Directors




|                     |  |     |    |  |          |                                                       
|-------------------- |  | --- | -- |  | -------- | ------------------------------------------------------
|Name                 |  | Age |    |  | Position
|                     |  |     |    |  |         
|William Schuster     |  |     | 53 |  |          | Chief Operating Officer                               
|Timothy J. Puckorius |  |     | 44 |  |          | Senior Vice President, Worldwide Marketing & Sales    
|Gary G. Adkins       |  |     | 55 |  |          | Vice President, Federal and National Security Programs
|Tony A. Anzilotti    |  |     | 43 |  |          | Vice President, Finance and Controller                
|Lee Demitry          |  |     | 51 |  |          | Vice President, Satellite Engineering and Operations  
|Alex J. Fox          |  |     | 43 |  |          | Vice President, CIO Products and Solutions            
|Ray Helmering, Ph.D. |  |     | 66 |  |          | Vice President, Photogrammetric Engineering           
|William L. Warren    |  |     | 39 |  |          | Vice President, General Counsel and Secretary         

William Schuster






Timothy J. Puckorius






Tony A. Anzilotti






62



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##### 





Lee Demitry






Alex J. Fox






William L. Warren






Compensation of Directors






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



63



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##### 



SUMMARY COMPENSATION TABLE


|                            |                                             |      |      |                 |        |                        |            |         |  |            |        |        |           |         |        |           |              |  |        |   |  |   |        |        |     
|--------------------------- | ------------------------------------------- | ---- | ---- | --------------- | ------ | ---------------------- | ---------- | ------- |  | ---------- | ------ | ------ | --------- | ------- | ------ | --------- | ------------ |  | ------ | - |  | - | ------ | ------ | ----
|                            |                                             |      |      |                 |        | Long-Term Compensation |            |         | 
|                            |                                             |      |      | Annual          |        |                        |            |         |  |           
|                            |                                             |      |      | Compensation(1) |        |                        | Restricted |         |  | Securities |        |        |          
|                            |                                             |      |      |                 |        |                        | Share      |         |  | Underlying |        |        | All Other |        
|Name and Principal Position |                                             | Year |      |                 | Salary |                        |            | Bonus   |  |            | Awards |        |           | Options |        |           | Compensation | 
|                            |                                             |      |      |                 |        |                        |            |         |  |            |        |        |           |         |        |           |              | 
|Matthew M. OConnell        |                                             |      | 2004 |                 |        | $                      | 350,000    |         |  | $          | 87,500 |        |           |         |       |           |              |  | 45,307 |   |  | $ | 9,720  | (2)   
|                            | President and Chief                         |      |      | 2003            |        |                        | $          | 350,000 |  |            | $      | 87,500 |           |         | $      | 3,489,357 | (3)          |  |        |  |  |   | $      | 78,587 | (4) 
|                            | Executive Officer                           |      |      | 2002            |        |                        | $          | 234,616 |  |            |        |       |           |         |        |          |              |  |        |  |  |   | $      | 56,645 | (5) 
|Timothy J. Puckorius        |                                             |      | 2004 |                 |        | $                      | 200,000    |         |  | $          | 68,540 |        |           | $       | 85,020 | (6)       |              |  | 25,890 |   |  | $ | 15,467 | (7)   
|                            | Senior Vice President                       |      |      | 2003            |        |                        | $          | 191,924 |  |            | $      | 55,200 |           |         | $      | 13,800    | (8)          |  |        |  |  |   | $      | 27,462 | (9) 
|                            | Worldwide Sales & Marketing                 |      |      | 2002            |        |                        | $          | 185,000 |  |            |        |       |           |         |        |          |              |  |        |  |  |   | $      | 23,353 | (10)
|Lee Demitry                 |                                             |      | 2004 |                 |        | $                      | 185,640    |         |  | $          | 50,123 |        |           | $       | 65,040 | (11)      |              |  | 24,031 |   |  | $ | 7,623  | (12)  
|                            | Vice President  Satellite                  |      |      | 2003            |        |                        | $          | 173,923 |  |            | $      | 48,195 |           |         | $      | 5,355     | (13)         |  |        |  |  |   | $      | 25,578 | (14)
|                            | Engineering and Operations                  |      |      | 2002            |        |                        | $          | 168,639 |  |            |        |       |           |         |        |          |              |  |        |  |  |   | $      | 41,449 | (15)
|Alex J. Fox                 |                                             |      | 2004 |                 |        | $                      | 175,139    |         |  | $          | 47,288 |        |           | $       | 55,490 | (16)      |              |  | 24,031 |   |  | $ | 5,338  | (17)  
|                            | Vice President  Products                   |      |      | 2003            |        |                        | $          | 144,840 |  |            | $      | 41,119 |           |         | $      | 4,569     | (18)         |  |        |  |  |   | $      | 20,129 | (19)
|                            | And Solutions and Chief Information Officer |      |      | 2002            |        |                        | $          | 138,450 |  |            |        |       |           |         |        |          |              |  |        |  |  |   | $      | 33,674 | (20)
|William L. Warren           |                                             |      | 2004 |                 |        | $                      | 161,827    |         |  | $          | 59,400 |        |           | $       | 25,050 | (21)      |              |  | 21,359 |   |  | $ | 6,146  | (22)  
|                            | Vice President, General                     |      |      | 2003            |        |                        |            |        |  |            |        |       |           |         |        |          |              |  |        |  |  |   |        |       |     
|                            | Counsel and Secretary                       |      |      | 2002            |        |                        |            |        |  |            |        |       |           |         |        |          |              |  |        |  |  |   |        |       |     






| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | Compensation is reportable in the year in which the compensable
    service was performed even if the compensation was paid in a
    subsequent year.                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| | (2) | Includes $8,200 matching contribution to 401(k) plan and $1,520
    payment for life insurance premium.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| | (3) | Total includes 275,454 shares of restricted stock granted
    on December 31, 2003 pursuant to
    Mr. OConnells employment agreement. Of such
    shares, 45,909 vested on June 30, 2004, 137,727 vested on
    January 3, 2005 and 91,818 will vest on January 3,
    2006. Total also includes 7,085 shares of restricted stock
    granted as the stock portion of Mr. OConnells
    2003 bonus. Such shares will vest on June 30, 2005. To the
    extent we pay dividends on our shares of common stock,
    Mr. OConnell will be entitled to dividends only on
    the shares which are then vested.
|
| | (4) | Includes $67,375 retention bonus, $9,692 matching contribution
    to 401(k) plan and $1,520 payment for life insurance premium.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|
| | (5) | Includes $55,125 retention bonus and $1,520 payment for life
    insurance premium.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| | (6) | Total includes 8,502 shares of restricted stock granted on
    July 1, 2004, 2,834 shares of which vest on each of
    December 31, 2004, 2005 and 2006. To the extent we pay
    dividends on our shares of common stock, Mr. Puckorius will
    be entitled to dividends only on the shares which are then
    vested.                                                                                                                                                                                                                                                                                        
|
| | (7) | Includes $7,000 commissions, $8,000 matching contribution to
    401(k) plan and $467 payment for life insurance premium.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| | (8) | Total includes 1,117 shares of restricted stock granted as
    the stock portion of Mr. Puckoriuss 2003 bonus. Such
    shares will vest on June 30, 2005. To the extent we pay
    dividends on our shares of common stock, Mr. Puckorius will
    be entitled to dividends only on the shares which are then
    vested.                                                                                                                                                                                                                                                                                     
|
| | (9) | Includes $20,350 retention bonus and $7,112 matching
    contribution to 401(k) plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           



|     |                                                                                                                                                                                                                                                                                                                       
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | Includes $16,650 retention bonus, $3,857 sales commissions and
    $2,846 matching contribution to 401(k) plan.                                                                                                                                                                                                       
|    
|(11) | Total includes 6,504 shares of restricted stock granted on
    July 1, 2004, 2,168 shares of which vest on each of
    December 31, 2004, 2005 and 2006. To the extent we pay
    dividends on our shares of common stock, Mr. Demitry will
    be entitled to dividends only on the shares which are then
    vested.
|    
|(12) | Includes $7,623 matching contribution to 401(k) plan.                                                                                                                                                                                                                                                                 
|    
|(13) | Total includes 434 shares of restricted stock granted as
    the stock portion of Mr. Demitrys 2003 bonus. Such
    shares will vest on June 30, 2005. To the extent we pay
    dividends on our shares of common stock, Mr. Demitry will
    be entitled to dividends only on the shares which are then
    vested. 

64



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##### 





|     |                                                                                                                                                                                                                                                                                                                                                                       
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(14) | Includes $18,700 retention bonus and $6,878 matching
    contribution to 401(k) plan.                                                                                                                                                                                                                                                                                 
|    
|(15) | Includes $18,822 retention bonus, $15,976 payment for accrued
    vacation foregone and $6,878 matching contribution to 401(k)
    plan.                                                                                                                                                                                                                              
|    
|(16) | Total includes 5,549 shares of restricted stock granted on
    July 1, 2004, 1,850 shares of which vest on each of
    December 31, 2004 and 2005 and 1,849 shares of which
    will vest on December 31, 2006. To the extent we pay
    dividends on our shares of common stock, Mr. Fox will be
    entitled to dividends only on the shares which are then vested. 
|    
|(17) | Includes $5,338 matching contribution to 401(k) plan.                                                                                                                                                                                                                                                                                                                 
|    
|(18) | Total includes 370 shares of restricted stock granted as
    the stock portion of Mr. Foxs 2003 bonus. Such shares
    will vest on June 30, 2005. To the extent we pay dividends
    on our shares of common stock, Mr. Fox will be entitled to
    dividends only on the shares which are then vested.                                                             
|    
|(19) | Includes $15,230 retention bonus and $4,899 matching
    contribution to 401(k) plan.                                                                                                                                                                                                                                                                                 
|    
|(20) | Includes $15,381 retention bonus, $13,865 payment for accrued
    vacation foregone and $4,427 matching contribution to 401(k)
    plan.                                                                                                                                                                                                                              
|    
|(21) | Total includes 2,505 shares of restricted stock granted on
    July 1, 2004, 835 shares of which vest on each of
    December 31, 2004 and 2005 and 1,849 shares of which
    will vest on December 31, 2006. To the extent we pay
    dividends on our shares of common stock, Mr. Warren will be
    entitled to dividends only on the shares which are then vested.
|    
|(22) | Includes $6,146 matching contribution to 401(k) plan.                                                                                                                                                                                                                                                                                                                 

OPTION GRANTS IN LAST FISCAL YEAR


|                     |  |                      |        |                   |                    |  |      |                |  |                      |                  |             |  |       |           |  |        |   |         |  |  |   |         | 
|-------------------- |  | -------------------- | ------ | ----------------- | ------------------ |  | ---- | -------------- |  | -------------------- | ---------------- | ----------- |  | ----- | --------- |  | ------ | - | ------- |  |  | - | ------- | 
|                     |  |                      |        |                   |                    |  |      |                |  | Potential Realizable |                 
|                     |  |                      |        |                   |                    |  |      |                |  | Value at Assumed     |                 
|                     |  |                      |        | Individual Grants |                    |  |      |                |  |                      | Annual Rates of  |            
|                     |  |                      |        |                   |                    |  |      |                |  |                      | Stock Price      |            
|                     |  |                      |        | (c)               |                    |  |      |                |  |                      | Appreciation for |            
|                     |  | (b)                  |        |                   | % of Total Options |  |      |                |  |                      |                  | Option Term | 
|                     |  | Number of Securities |        |                   | Granted to         |  |      | (d)            |  |                      |                  |             |  |      
|(a)                  |  | Underlying Options   |        |                   | Employees in       |  |      | Exercise Price |  |                      | (e)              |             |  | (f)   |           |  | (g)    |  
|Name                 |  | Granted(1)           |        |                   | Fiscal Year        |  |      | ($/Sh)         |  |                      | Expiration Date  |             |  | 5%($) |           |  | 10%($) |  
|                     |  |                      |        |                   |                    |  |      |                |  |                      |                  |             |  |       |           |  |        |  
|Matthew M. OConnell |  |                      | 45,307 |                   |                    |  | 15.2 | %              |  | $                    | 6.50             |             |  |       | 9/23/2014 |  |        | $ | 184,853 |  |  | $ | 468,927 | 
|Timothy J. Puckorius |  |                      | 25,890 |                   |                    |  | 8.7  | %              |  | $                    | 6.50             |             |  |       | 9/23/2014 |  |        | $ | 105,631 |  |  | $ | 267,962 | 
|Lee Demitry          |  |                      | 24,031 |                   |                    |  | 8.0  | %              |  | $                    | 6.50             |             |  |       | 9/23/2014 |  |        | $ | 98,046  |  |  | $ | 248,721 | 
|Alex J. Fox          |  |                      | 24,031 |                   |                    |  | 8.0  | %              |  | $                    | 6.50             |             |  |       | 9/23/2014 |  |        | $ | 98,046  |  |  | $ | 248,721 | 
|William L. Warren    |  |                      | 21,359 |                   |                    |  | 7.2  | %              |  | $                    | 6.50             |             |  |       | 9/23/2014 |  |        | $ | 87,145  |  |  | $ | 221,066 | 






|    |                                                                                                                                                  
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | All option grants were made on September 24, 2004 and vest
    in equal installments on each of December 31, 2004, 2005,
    2006, 2007 and 2008.

65



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AGGREGATED OPTION EXERCISES DURING 2004 AND DECEMBER 31,
2004 OPTION VALUES




|                     |  |             |   |  |          |                        |                      |             |                      |                      |               |  |  |             |        |  |               |   |         |  |  |   |         | 
|-------------------- |  | ----------- | - |  | -------- | ---------------------- | -------------------- | ----------- | -------------------- | -------------------- | ------------- |  |  | ----------- | ------ |  | ------------- | - | ------- |  |  | - | ------- | 
|                     |  |             |   |  |          | Number of Securities   |                      |             |                     
|                     |  |             |   |  |          | Underlying Unexercised |                      |             | Value of Unexercised |                     
|                     |  |             |   |  |          | Option Shares          |                      |             | In-the-Money Options |                     
|                     |  | Shares      |   |  |          |                        | at December 31, 2004 |             |                      | at December 31, 2004 |              
|                     |  | Acquired on |   |  | Value    |                        |                      |             |                      |                      |               | 
|Name                 |  | Exercise    |   |  | Realized |                        |                      | Exercisable |                      |                      | Unexercisable |  |  | Exercisable |        |  | Unexercisable |  
|                     |  |             |   |  |          |                        |                      |             |                      |                      |               |  |  |             |        |  |               |  
|Matthew M. OConnell |  |             |  |  |          |                        |                     |             |                      |                      | 9,061         |  |  |             | 36,246 |  |               | $ | 108,732 |  |  | $ | 434,952 | 
|Timothy J. Puckorius |  |             |  |  |          |                        |                     |             |                      |                      | 5,178         |  |  |             | 20,712 |  |               |   | 62,136  |  |  |   | 248,544 | 
|Lee Demitry          |  |             |  |  |          |                        |                     |             |                      |                      | 4,806         |  |  |             | 19,225 |  |               |   | 57,672  |  |  |   | 230,700 | 
|Alex J. Fox          |  |             |  |  |          |                        |                     |             |                      |                      | 4,806         |  |  |             | 19,225 |  |               |   | 57,672  |  |  |   | 230,700 | 
|William L. Warren    |  |             |  |  |          |                        |                     |             |                      |                      | 4,272         |  |  |             | 17,087 |  |               |   | 51,264  |  |  |   | 205,044 | 

Employment Agreements








66



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##### 



Equity Incentive Plans


2003 Employee Stock Incentive Plan.


2004 Non-Employee Director Equity Incentive Plan.


401(k) Plan




Compensation Committee Interlocks and Insider
Participation









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



67



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##### 





|                                                           |  |                  |           |                       |                |  |      | 
|---------------------------------------------------------- |  | ---------------- | --------- | --------------------- | -------------- |  | ---- | 
|                                                           |  | Number of Shares |           |                       |               
|                                                           |  | Beneficially     |           |                       | Percent of All | 
|Name and Business Address of Beneficial Owner              |  | Owned            |           |                       | Shares         | 
|                                                           |  |                  |           |                       |                | 
|Directors and Executive Officers*                          |  |                  |           |                       |                |  |      | 
|Matthew M. OConnell                                       |  |                  | 291,600   | (1)                   |                |  | 2.1  | 
|Lee Demitry                                                |  |                  | 11,744    | (2)                   |                |  |     | 
|Alex J. Fox                                                |  |                  | 10,725    | (3)                   |                |  |     | 
|Timothy J. Puckorius                                       |  |                  | 14,797    | (4)                   |                |  |     | 
|William L. Warren                                          |  |                  | 6,777     | (5)                   |                |  |     | 
|James A. Abrahamson                                        |  |                  | 5,000     | (6)                   |                |  |     | 
|Joseph M. Ahearn                                           |  |                  | 5,000     | (6)                   |                |  |     | 
|Talton R. Embry                                            |  |                  | 5,000     | (6)                   |                |  |     | 
|Lawrence A. Hough                                          |  |                  | 5,000     | (6)                   |                |  |     | 
|John W. Pitts                                              |  |                  | 5,000     | (6)                   |                |  |     | 
|William W. Sprague                                         |  |                  | 5,000     | (6)                   |                |  |     | 
|All directors and executive officers as group (15 persons) |  |                  | 496,051   | (1)(2)(3)(4)(5)(6)(7) |                |  | 3.5  | 
|5% Holders                                                 |  |                  |           |                       |                |  |      | 
|Harbert Distressed Master Fund, Ltd.(8)                    |  |                  | 4,208,979 | (9)                   |                |  | 29.7 | 
|Redwood Master Fund, Ltd.(10)                              |  |                  | 1,324,353 | (11)                  |                |  | 9.3  | 
|Deephaven Distressed Opportunities Trading, Ltd.(12)       |  |                  | 1,042,962 | (13)                  |                |  | 7.4  | 
|Whitebox Advisors, LLC(14)                                 |  |                  | 883,385   | (15)                  |                |  | 6.2  | 
|Credit Suisse First Boston LLC(16)                         |  |                  | 802,132   | (17)                  |                |  | 5.7  | 






| |   |                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------
| | * | Unless otherwise indicated, the address is c/o ORBIMAGE
    Inc., 21700 Atlantic Boulevard, Dulles, Virginia 20166.



| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | Total includes (i) 275,454 shares of restricted stock
    granted on December 31, 2003 pursuant to
    Mr. OConnells employment agreement, of which,
    45,909 vested on June 30, 2004, 137,727 vested on
    January 3, 2005 and 91,818 will vest on January 3,
    2006, (ii) 7,085 shares of restricted stock granted as
    the stock portion of Mr. OConnells 2003 bonus,
    which will vest on June 30, 2005 and (iii) 9,061
    options to purchase common stock, which vested on
    December 31, 2004. To the extent we pay dividends on our
    shares of common stock, Mr. OConnell will be entitled
    to dividends only on the shares which are then vested.
|
| | (2) | Total includes (i) 434 shares of restricted stock
    granted as the stock portion of Mr. Demitrys 2003
    bonus, which will vest on June 30, 2005,
    (ii) 6,504 shares of restricted stock granted on
    July 1, 2004, 2,168 shares of which vest on each of
    December 31, 2004, 2005 and 2006, and (iii) 4,806
    options to purchase common stock, which vested on
    December 31, 2004.                                                                                                                                                                                                                                                                            
|
| | (3) | Total includes (i) 370 shares of restricted stock
    granted as the stock portion of Mr. Foxs 2003 bonus,
    which will vest on June 30, 2005,
    (ii) 5,549 shares of restricted stock granted on
    July 1, 2004, 1,850 shares of which vest on each of
    December 31, 2004 and 2005 and 1,849 shares of which
    will vest on December 31, 2006, and (iii) 4,806
    options to purchase common stock, which vested on
    December 31, 2004.                                                                                                                                                                                                                         
|
| | (4) | Total includes (i) 1,117 shares of restricted stock
    granted as the stock portion of Mr. Puckoriuss 2003
    bonus, which will vest on June 30, 2005,
    (ii) 8,502 shares of restricted stock granted on
    July 1, 2004, 2,834 shares of which vest on each of
    December 31, 2004, 2005 and 2006, and (iii) 5,178
    options to purchase common stock, which vested on
    December 31, 2004.                                                                                                                                                                                                                                                                        

68



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##### 





| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (5) | Total includes (i) 2,505 shares of restricted stock
    granted on July 1, 2004, 835 shares of which vest on
    each of December 31, 2004, 2005 and 2006, and
    (ii) 4,272 options to purchase common stock, which vested
    on December 31, 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| | (6) | Each of the non-employee directors received a grant of
    5,000 shares of restricted stock which vest
    1,000 shares per year on each July 1, beginning
    July 1, 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|
| | (7) | Includes 11,200 options to purchase common stock issued to
    executive officers (other than Messrs. OConnell,
    Demitry, Fox, Puckorius and Warren).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| | (8) | Includes Harbert Distressed Investment Master Fund, Ltd. (the
    Master Fund), HMC Distressed Investment Offshore
    Manager, L.L.C. (HMC Management), the sole
    investment manager of the Master Fund, HMC Investors, L.L.C.
    (HMC Investors), the managing member of both HMC
    Management and the Master Fund, Ltd. and the investment manager
    of Harbert Event Driven Master Fund, Ltd., Philip Falcone, a
    member of HMC Management, Distressed Investment Offshore
    Manager, L.L.C. who acts as the portfolio manager of the Master
    Fund on behalf of HMC Management and is the portfolio manager of
    Alpha US Sub Fund VI, LLC (which is a separate managed
    account), Raymond J. Harbert, a member of HMC Investors, and
    Michael D. Luce, a member of HMC Investors. The address of HMC
    Management and Philip Falcone is 555 Madison Avenue, 16th Floor,
    New York, NY 10022. The address for the Master Fund is
    c/o International Fund Services (Ireland) Limited,
    Third Floor, Bishops Square, Redmonds Hill,
    Dublin 2, Ireland. The address for HMC Investors, Raymond
    J. Harbert, and Michael D. Luce is One Riverchase Parkway South,
    Birmingham, AL 35244.
|
| | (9) | Based on publicly available filings with the SEC through
    January 28, 2005, Schedule 13D filed with the SEC on
    January 14, 2005, and Company records.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 



|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | Address is 910 Sylvan Avenue, Englewood Cliffs, NJ 07632.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    
|(11) | Based on information provided to the Company by such beneficial
    owner, as adjusted to give effect to (i) the issuance of
    shares and warrants in a private placement on November 16,
    2004 and the subsequent exercise of such warrants and
    (ii) an additional issuance of shares as consideration for
    such beneficial owners commitment to purchase additional
    debt securities of the Company in the future.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    
|(12) | Address is 130 Cheshire Lane  Suite 102,
    Minnetonka, MN 55305.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    
|(13) | Based on information provided to the Company by such beneficial
    owner, as adjusted to give effect to (i) the issuance of
    shares and warrants in a private placement on November 16,
    2004 and the subsequent exercise of such warrants and
    (ii) an additional issuance of shares as consideration for
    such beneficial owners commitment to purchase additional
    debt securities of the Company in the future.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    
|(14) | Includes Whitebox Advisors, LLC (WA), Whitebox
    Convertible Arbitrage Advisors, LLC (WCAA), Whitebox
    Convertible Arbitrage Partners, L.P. (WCAP),
    Whitebox Convertible Arbitrage Fund, L.P. (WCAFLP),
    Whitebox Convertible Arbitrage Fund, Ltd. (WCAFLTD),
    Whitebox Hedged High Yield Advisors, LLC (WHHYA),
    Whitebox Hedged High Yield Partners, L.P. (WHHYP),
    Whitebox Hedged High Yield Fund, L.P. (WHHYFLP),
    Whitebox Hedged High Yield Fund, Ltd. (WHHYFLTD),
    AJR Financial, LLC (AJR), Pandora Select Advisors,
    LLC (PSA), Pandora Select Partners, L.P.
    (PSP), Pandora Select Fund, L.P.
    (PSFLP), and Pandora Select Fund, Ltd.
    (PSFLTD). WA, the managing member and sole owner of
    WCAA and WHHYA, has the power to direct the affairs of WCAA and
    WHHYA which manages accounts for the benefit of its clients
    WCAP, WCAFLP, WCAFLTD, WHHYP, WHHYFLP and WHHYFLTD. WCAA has the
    power to direct the affairs of WCAP and WHHYA has the power to
    direct the affairs of WHHYP including decision making power with
    respect to the disposition of the proceeds from the sale of the
    Common Stock. AJR, the managing member and sole owner of PSA,
    has the power to direct the affairs of PSA which manages
    accounts for the benefit of its clients PSP, PSFLP and PSFLTD.
    PSA has the power to direct the affairs of PSP including
    decision making power with respect to the disposition of the
    proceeds from the sale of the Common Stock. The address of WA,
    WCAA, WCAFLP, WHHYA, WHHYFLP, AJR, PSA, and PSFLP is 3033
    Excelsior Boulevard, Suite 300, Minneapolis, MN 55416. The
    address of WCAP, WCAFLTD, WHHYP, WHHYFLTD, PSP, and

69



---



##### 



|     |                                                                                                                                                                                                                                                                                                                                                                                                                                     
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     | PSFLTD is Trident Chambers, P.O. Box 146, Waterfront Drive,
    Wickhams Cay, Road Town, Tortolla, British Virgin Islands.                                                                                                                                                                                                                                                                                                          
|    
|(15) | Based on information provided to the Company by such beneficial
    owner, as adjusted to give effect to (i) the issuance of
    shares and warrants in a private placement on November 16,
    2004 and the subsequent exercise of such warrants and
    (ii) an additional issuance of shares as consideration for
    such beneficial owners commitment to purchase additional
    debt securities of the Company in the future.
|    
|(16) | Address is 11 Madison Avenue, New York, NY 10010.                                                                                                                                                                                                                                                                                                                                                                                   
|    
|(17) | Based on information provided to the Company by such beneficial
    owner, as adjusted to give effect to (i) the issuance of
    shares and warrants in a private placement on November 16,
    2004 and the subsequent exercise of such warrants and
    (ii) an additional issuance of shares as consideration for
    such beneficial owners commitment to purchase additional
    debt securities of the Company in the future.






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










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



70



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##### 





|                      |  |      |         | 
|--------------------- |  | ---- | ------- | 
|                      |  | 2004 |        
|                      |  |      |        
|Audit Fees(1)         |  | $    | 261,652 | 
|Audit-related Fees(2) |  |      | 22,000  | 
|                      |  |      |        
|Total                 |  | $    | 283,652 | 
|                      |  |      |        




NOTES TO TABLE




|    |                                                                                                                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Audit fees principally include the annual audits of the
    financial statements for the years ended December 31, 2003
    and 2002, SEC registration statements and other filings, and
    consultation on accounting matters.
|   
|(2) | Audit-related fees principally include employee benefit plan
    audits for the years ended December 31, 2003 and 2002.                                                                                                        

71



---



##### 



PART IV




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





|                                                                                      |  |      |    | 
|------------------------------------------------------------------------------------- |  | ---- | -- | 
|                                                                                      |  | Page |   
|                                                                                      |  |      |   
|Report of Independent Registered Public Accounting Firm                               |  |      | 33 | 
|Statements of Operations  Years Ended
    December 31, 2004, 2003 and 2002           |  |      | 34 | 
|Balance Sheets  December 31, 2004 and 2003                                           |  |      | 35 | 
|Statements of Cash Flows  Years Ended
    December 31, 2004, 2003 and 2002           |  |      | 36 | 
|Statements of Stockholders Equity  Years Ended
    December 31, 2004, 2003 and 2002 |  |      | 37 | 
|Notes to Financial Statements                                                         |  |      | 38 | 







|            |   |      |             |                                                                                                                                                                                                                                                                  
|----------- | - | ---- | ----------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |   |      | Description
|            |   |      |            
|            | 2 | .1   |             | Fourth Amended Disclosure Statement and Plan of Reorganization
    (incorporated by reference to Exhibit T3E to Form T-3
    filed by Orbital Imaging Corporation on December 3, 2003
    (File No. 022-28714))                                                  
|            | 3 | .1   |             | Third Amended and Restated Certificate of Incorporation of the
    Company (incorporated by reference to Exhibit T3A to
    Form T-3 filed by Orbital Imaging Corporation on
    December 3, 2003 (File No. 022-28714))                                          
|            | 3 | .2   |             | Second Amended and Restated Bylaws of the Company (incorporated
    by reference to Exhibit T3B to Form T-3 filed by
    Orbital Imaging Corporation on December 3, 2003 (File
    No. 022-28714))                                                               
|            | 4 | .1   |             | Note and Security Agreement for Senior Notes Due 2008
    (incorporated by reference to Exhibit 4.1 to Form 10
    filed on September 13, 2004 (File No. 022-28714))                                                                                             
|            | 4 | .1.1 |             | First Amendment to Note and Security Agreement for Senior Notes
    due 2008 (incorporated by reference to Exhibit 4.1.1 to
    Form 10/ A filed on December 1, 2004 (File
    No. 0-50933))                                                                     
|            | 4 | .2   |             | Indenture, Senior Subordinated Notes due 2008 (incorporated by
    reference to Exhibit T3C to Form T-3 filed by Orbital
    Imaging Corporation on December 3, 2003 (File
    No. 022-28714))                                                                   
|            | 4 | .2.1 |             | Supplemental Indenture, Senior Subordinated Notes due 2008
    (incorporated by reference to Exhibit 4.2.1 to
    Form 10/ A filed on December 1, 2004 (File
    No. 0-50933))                                                                                   
|            | 4 | .3   |             | Registration Rights Agreement dated as of December 31, 2003
    (incorporated by reference to Exhibit 4.3 to Form 10
    filed on September 13, 2004 (File No. 022-28714))                                                                                       
|            | 4 | .4   |             | Form of Warrant  Warrants issued December 31,
    2003 (incorporated by reference to Exhibit 4.4 to
    Form 10 filed on September 13, 2004 (File No.
    022-28714))                                                                                           
|            | 4 | .5   |             | Registration Rights Agreement dated as of November 16, 2004
    (incorporated by reference to Exhibit 4.5 to Form 10/
    A filed on December 1, 2004 (File No. 0-50933))                                                                                        
|            | 4 | .6   |             | Form of Warrant  Warrants issued November 16,
    2004 (incorporated by reference to Exhibit 4.6 to
    Form 10/ A filed on December 1, 2004 (File
    No. 0-50933))                                                                                            
|            | 4 | .7   |             | Specimen Common Stock Certificate (incorporated by reference to
    Exhibit 4.7 to the Companys Post-effective Amendment
    No. 1 to Form S-1, filed February 14, 2004 (file
    no. 333-122493))                                                              
|            | 4 | .8   |             | Specimen Warrant Certificate  Warrants issued in the
    rights offering (incorporated by reference to Exhibit 4.8
    to Post-Effective Amendment No. 2 to the Companys
    registration statement on Form S-1 filed March 21,
    2005 (file no. 333-122493))

72



---



##### 



|            |       |      |             |                                                                                                                                                                                                                                             
|----------- | ----- | ---- | ----------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |       |      | Description
|            |       |      |            
|            | 4     | .9   |             | Form of Subscription Rights Certificate (incorporated by
    reference to Appendix B to the Companys
    section 424(b)(3) Prospectus, filed February 14, 2004
    (file no. 333-122493))                                                  
|            | 4     | .10  |             | Warrant Agreement (incorporated by reference to
    Exhibit 4.10 to Post-Effective Amendment No. 2 to the
    Companys registration statement on Form S-1 filed
    March 21, 2005 (file no. 333-122493))                                  
|            | **10  | .1   |             | Distribution Agreement with NTT Data Corporation (incorporated
    by reference to Exhibit 10.1 to Form 10/ A filed on
    January 11, 2005 (File No. 0-50933))                                                                             
|            | **10  | .1.1 |             | Amendment No. 1 to Distribution Agreement with NTT Data
    Corporation (incorporated by reference to Exhibit 10.1.1 to
    Form 10/ A filed on January 11, 2005 (File
    No. 0-50933))                                                    
|            | **10  | .2   |             | Amended and Restated Distributor License Agreement with Korea
    Aerospace Industries, Ltd. (incorporated by reference to
    Exhibit 10.2 to Form 10/ A filed on January 11,
    2005 (File No. 0-50933))                                 
|            | *10   | .2.1 |             | Amendment No. 1 to Amended and Restated Distributor License
    Agreement with Korea Aerospace Industries, Ltd. (incorporated by
    reference to Exhibit 10.2.1 to Form 10/ A filed on
    December 1, 2004 (File No. 0-50933))            
|            | *10   | .2.2 |             | Amendment No. 2 to Amended and Restated Distributor License
    Agreement with Korea Aerospace Industries, Ltd. (incorporated by
    reference to Exhibit 10.2.2 to Form 10/ A filed on
    December 1, 2004 (File No. 0-50933))            
|            | *10   | .2.3 |             | Amendment No. 3 to Amended and Restated Distributor License
    Agreement with Korea Aerospace Industries, Ltd. (incorporated by
    reference to Exhibit 10.2.3 to Form 10/ A filed on
    December 1, 2004 (File No. 0-50933))            
|            | **10  | .3   |             | Amended and Restated Access Agreement (incorporated by reference
    to Exhibit 10.3 to Form 10/ A filed on
    January 11, 2005 (File No. 0-50933))                                                                                        
|            | 10    | .4   |             | 2003 Employee Stock Incentive Plan (incorporated by reference to
    Exhibit 10.4 to Form 10 filed on September 13,
    2004 (File No. 022-28714))                                                                                          
|            | 10    | .5   |             | 2004 Non-Employee Director Stock Incentive Plan (incorporated by
    reference to Exhibit 10.5 to Form 10 filed on
    September 13, 2004 (File No. 022-28714))                                                                             
|            | 10    | .6   |             | Employment Agreement for Matthew OConnell (incorporated by
    reference to Exhibit 10.6 to Form 10 filed on
    September 13, 2004 (File No. 022-28714))                                                                                  
|            | 10    | .7   |             | Restricted Stock Agreement for Matthew OConnell
    (incorporated by reference to Exhibit 10.7 to Form 10
    filed on September 13, 2004 (File No. 022-28714))                                                                            
|            | 10    | .8   |             | Employment Agreement for Tim Puckorius (incorporated by
    reference to Exhibit 10.8 to Form 10 filed on
    September 13, 2004 (File No. 022-28714))                                                                                      
|            | 10    | .9   |             | Form of Restricted Stock Agreement for Employees (incorporated
    by reference to Exhibit 10.9 to Form 10 filed on
    September 13, 2004 (File No. 022-28714))                                                                            
|            | 10    | .10  |             | Form of Indemnity Agreements for Directors and Executive
    Officers (incorporated by reference to Exhibit 10.10 to
    Form 10 filed on September 13, 2004 (File
    No. 022-28714))                                                      
|            | 10    | .11  |             | Form of Investment Agreement for private placement of shares and
    warrants and commitment to backstop rights offering
    (incorporated by reference to Exhibit 10.11 to
    Form 10/ A filed on December 1, 2004 (File
    No. 0-50933))
|            | ***10 | .12  |             | Contract No. HM1573-04-C-0003 with U.S. National
    Geospatial-Intelligence Agency (incorporated by reference to
    Exhibit 10.12 to Form 10/ A filed on January 27,
    2005 (File No. 0-50933))                                         
|            | ***10 | .13  |             | Contract No. HM1573-04-C-0014 with U.S. National
    Geospatial-Intelligence Agency (incorporated by reference to
    Exhibit 10.12 to Form 10/ A filed on January 27,
    2005 (File No. 0-50933))                                         
|            | ***10 | .14  |             | Contract No. HM1573-04-3-0001 with U.S. National
    Geospatial-Intelligence Agency (incorporated by reference to
    Exhibit 10.12 to Form 10/ A filed on January 27,
    2005 (File No. 0-50933))                                         
|            | 10    | .15  |             | Employment Agreement for William Schuster (incorporated by
    reference to Exhibit 10.15 to the Companys
    Form S-1, filed February 2, 2004 (file no. 333-122493))                                                                      
|            | 14    | .1   |             | Code of Business Conduct and Ethics (incorporated by reference
    to Exhibit 14.1 to the Companys Form S-1, filed
    February 2, 2004 (file no. 333-122493))                                                                             

73



---



##### 



|            |    |    |             |                                                                             
|----------- | -- | -- | ----------- | ----------------------------------------------------------------------------
|Exhibit No. |    |    | Description
|            |    |    |            
|            | 31 | .1 |             | Rule 13a-14(a) Certification of Matthew M. OConnell                        
|            | 31 | .2 |             | 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
    Tony A. Anzilotti   






|    |                                                                                                                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|*   | Portions of these exhibits, filed as exhibits to our
    Form 10/ A filed on December 1, 2004, were omitted
    pursuant to a request for confidential treatment. Such portions
    were filed separately with the Securities and Exchange
    Commission.
|   
|**  | Portions of these exhibits, filed as exhibits to our
    Form 10/ A filed on January 11, 2005, were omitted
    pursuant to a request for confidential treatment. Such portions
    were filed separately with the Securities and Exchange
    Commission.
|   
|*** | Portions of these exhibits, filed as exhibits to our
    Form 10/ A filed on January 27, 2005, were omitted
    pursuant to a request for confidential treatment. Such portions
    were filed separately with the Securities and Exchange
    Commission.

74



---



##### 



SIGNATURES






| |              
| | -------------
| | ORBIMAGE 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/ Tony A. AnzilottiTony
    A. Anzilotti           |  | Vice President Finance and 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/ William W. SpragueWilliam
    W. Sprague         |  | Director                                                                         

75