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UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-K/A





(Amendment No. 1)


ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)


OF SECURITIES EXCHANGE ACT OF 1934


For the fiscal year ended December 31, 2005


Commission File Number 000-50933


ORBIMAGE HOLDINGS INC.


(Exact name of registrant as specified in its charter)


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

Registrants telephone number, including area code:


(703) 480-7500


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


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

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


Common Stock, Par Value $0.01


þ o


S-K 10-K 10-K. o þ


o þ


o þ


12b-2 o þ




o þ o







þ o













DOCUMENTS INCORPORATED BY REFERENCE












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##### 










EXPLANATORY NOTE





10-K/A 10-K 12b-15 10-K/A





TABLE OF CONTENTS





|             |  |                                                                                          |    |          |      |  |  | 
|------------ |  | ---------------------------------------------------------------------------------------- | -- | -------- | ---- |  |  | 
|Item         |  |                                                                                          |    |          | Page | 
|             |  |                                                                                          |    |          |      | 
|             |  |                                                                                          |    | PART II  |      |  |  | 
|Item 7       |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operation |    |          | 2    | 
|Item 8       |  | Financial Statements and Supplementary
    Data                                          |    |          | 17   | 
|             |  |                                                                                          |    | PART III |      |  |  | 
|Item 11      |  | Executive Compensation                                                                   |    |          | 46   | 
|Item 12      |  | Security Ownership of Certain Beneficial
    Owners and Management                       |    |          | 49   | 
|Item 13      |  | Certain Relationships and Related
    Transactions                                       |    |          | 53   | 
|Item 14      |  | Principal Accountant Fees and Services                                                   |    |          | 53   | 
|             |  |                                                                                          |    | PART IV  |      |  |  | 
|Item 15      |  | Exhibits and Financial Statement
    Schedules                                           |    |          | 54   | 
|Signatures   |  |                                                                                          | 54 |         
|Exhibit 10.1
|EX-31.1     
|EX-31.2     
|EX-31.3     
|EX-32.1     
|EX-32.2     
|EX-32.3     








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


GeoEye-1. GeoEye-1






GeoEye-1.


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Reorganization.











NextView Program.




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GeoEye-1. GeoEye-1


GeoEye-1 GeoEye-1


GeoEye-1 GeoEye-1


GeoEye-1 GeoEye-1


Space Imaging Acquisition.












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Chapter 11 Reorganization. debtor-in


pari passu







90-7, 90-7)





90-7.




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Industry and Business Considerations






Critical Accounting Policies




Revenue Recognition and Contract Accounting. GeoEye-1




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Receivables.


Long-Lived Assets.







Goodwill.





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year-end


Results of Operations




Revenues.


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


OrbView-3 OrbView-3 OrbView-3


Direct Expenses. OrbView-3 OrbView-3


OrbView-3 OrbView-3


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OrbView-3 OrbView-3 OrbView-3





Selling, General and Administrative Expenses. OrbView-3


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





Interest Expense, net.







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OrbView-3.





Loss from Early Extinguishment of Debt. GeoEye-1


Unrealized Gain on Derivative Instrument.


Reorganization Items. 90-7,


Benefit for Income Taxes.


Backlog. GeoEye-1 GeoEye-1


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GeoEye-1


Liquidity and Cash Flows




OrbView-3





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








OrbView-3 OrbView-3 OrbView-3







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GeoEye-1


GeoEye-1












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OrbView-3


GeoEye-1




OrbView-3


Capital Structure and Resources










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









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






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Recent Accounting Pronouncements










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

ORBIMAGE HOLDINGS INC.


INDEX TO FINANCIAL STATEMENTS





|                                                                                                         |  |      |    | 
|-------------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|                                                                                                         |  | Page |   
|                                                                                                         |  |      |   
|Report of Independent Registered Public
    Accounting Firm on Internal Control over Financial Reporting |  |      | 18 | 
|Report of Independent Registered Public
    Accounting Firm                                              |  |      | 20 | 
|Consolidated Statements of
    Operations  Years Ended December 31, 2005, 2004
    and 2003             |  |      | 21 | 
|Consolidated Balance Sheets 
    December 31, 2005 and 2004                                             |  |      | 22 | 
|Consolidated Statements of Cash
    Flows  Years Ended December 31, 2005, 2004 and
    2003             |  |      | 23 | 
|Consolidated Statements of
    Stockholders Equity  Years Ended
    December 31, 2005, 2004, and 2003  |  |      | 24 | 
|Notes to Consolidated Financial
    Statements                                                           |  |      | 25 | 




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Report of Independent Registered Public Accounting Firm


on Internal Control over Financial Reporting








Internal Control  Integrated Framework












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









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Internal Control  Integrated Framework Internal Control 
Integrated Framework







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











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Report of Independent Registered Public Accounting Firm












,





Internal Control 
Integrated Framework







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











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ORBIMAGE HOLDINGS INC.





CONSOLIDATED STATEMENTS OF OPERATIONS


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



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ORBIMAGE HOLDINGS INC.





CONSOLIDATED BALANCE SHEETS


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



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ORBIMAGE HOLDINGS INC.





CONSOLIDATED STATEMENTS OF CASH FLOWS


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



23



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##### Table of Contents



ORBIMAGE HOLDINGS INC.





CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY


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



24



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##### Table of Contents



ORBIMAGE HOLDINGS INC.





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


December 31, 2005




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

OrbView-3 OrbView-3














25



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##### Table of Contents



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)








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



out-of




26



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##### Table of Contents



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




(2)     Significant Accounting
Policies




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




90-7, 90-7)





90-7.




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





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



percentage-of




27



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##### Table of Contents



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)










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








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






28



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##### Table of Contents



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)








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





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





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





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





29



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##### Table of Contents



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




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





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





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





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



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





30



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##### Table of Contents



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






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

90-7.


90-7,






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



GeoEye-1. GeoEye-1


31



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##### Table of Contents



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


GeoEye-1 GeoEye-1


GeoEye-1 GeoEye-1


GeoEye-1






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



32



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##### Table of Contents



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




























33



---



##### Table of Contents



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)
















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



34



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##### Table of Contents



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






pari passu






35



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##### Table of Contents



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)








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





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



36



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##### Table of Contents



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




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






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









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



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



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





37



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##### Table of Contents



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






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



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





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






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




38



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##### Table of Contents



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




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





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



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

90-7,




39



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##### Table of Contents



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






GeoEye-1






GeoEye-1


40



---



##### Table of Contents



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


GeoEye-1














GeoEye-1




41



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##### Table of Contents



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)










GeoEye-1




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



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



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





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



42



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##### Table of Contents



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




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





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





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

43



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ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




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





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








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








44



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##### Table of Contents



ORBIMAGE HOLDINGS INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






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

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

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






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

45



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##### Table of Contents






PART III




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



Summary Compensation Table.


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        |                            |      | 2005 |                         |        | $ | 350,000    |                        |  | $          | 957,465 | (2)    |           |         |  |           |              |  |  |        |  | $ | 24,920 | (3)   
|                            | President and              |      |      | 2004                    |        |   | $          | 350,000                |  |            | $       | 87,500 |           |         | $ | 58,322    | (4)          |  |   | 45,307 |  |   | $      | 9,720  | (5) 
|                            | Chief Executive Officer    |      |      | 2003                    |        |   | $          | 350,000                |  |            | $       | 87,500 |           |         | $ | 3,489,357 | (6)          |  |   |       |  |   | $      | 78,587 | (7) 
|William Schuster            |                            |      | 2005 |                         |        | $ | 242,500    |                        |  |            | 42,438  |        |           |         |  |           |              |  |  |        |  | $ | 10,189 | (8)   
|                            | Chief Operating Officer    |      |      | 2004                    |        |   | $          | 13,990                 |  |            |         |       |           |         | $ | 182,500   | (9)          |  |   | 22,262 |  |   |        |       |     
|                            |                            |      | 2003 |                         |        |   |            |                        |  |            |        |        |           |         |  |           |              |  |  |        |  |   |        |       
|Lee Demitry                 |                            |      | 2005 |                         |        | $ | 192,923    |                        |  |            | 28,960  |        |           |         |  |           |              |  |  |        |  | $ | 7,665  | (10)  
|                            | Vice PresidentSatellite   |      |      | 2004                    |        |   | $          | 185,640                |  |            | $       | 50,123 |           |         | $ | 68,752    | (11)         |  |   | 24,031 |  |   | $      | 7,623  | (12)
|                            | Engineering and Operations |      |      | 2003                    |        |   | $          | 173,923                |  |            | $       | 48,195 |           |         | $ | 5,355     | (13)         |  |   |       |  |   | $      | 25,578 | (14)
|Alex J. Fox                 |                            |      | 2005 |                         |        | $ | 188,881    |                        |  |            | 28,373  |        |           |         |  |           |              |  |  |        |  | $ | 5,712  | (15)  
|                            | Vice PresidentProducts    |      |      | 2004                    |        |   | $          | 175,139                |  |            | $       | 47,288 |           |         | $ | 58,994    | (16)         |  |   | 24,031 |  |   | $      | 5,338  | (17)
|                            | And Solutions and          |      |      | 2003                    |        |   | $          | 144,840                |  |            | $       | 41,119 |           |         | $ | 4,569     | (18)         |  |   |       |  |   | $      | 20,129 | (19)
|                            | Chief Information Officer  |      |      |                         |        |   |            |                        |  |            |         |        |           |         |   |           |              |  |   |        |  |   |        |        |     
|William L. Warren           |                            |      | 2005 |                         |        | $ | 178,200    |                        |  |            | 26,730  |        |           |         |  |           |              |  |  |        |  | $ | 6,712  | (21)  
|                            | Vice President General     |      |      | 2004                    |        |   | $          | 161,827                |  |            | $       | 57,400 |           |         | $ | 25,050    | (20)         |  |   | 21,359 |  |   | $      | 6,146  | (22)
|                            | Counsel and Secretary      |      |      | 2003                    |        |   |            |                       |  |            |         |       |           |         |   |          |              |  |   |       |  |   |        |       |     









| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (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 $869,965 bonus payable upon refinancing of
    Companys old notes as required by
    Mr. OConnells employment agreement                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
|
| | (3) | Includes $15,000 car allowance, $8,400 matching contribution to
    401(k) plan, and $1,520 payment for life insurance premiums.                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| | (4) | Includes $4,761 shares of restricted stock granted as the stock
    portion of Mr. OConnells 2004 bonus.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| | (5) | Includes $8,200 matching contribution to 401(k) plan and $1,520
    payment for life insurance premium.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|
| | (6) | 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 vested 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 vested on June 30, 2005. To the extent that 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.
|
| | (7) | Includes $67,375 retention bonus, $9,692 matching contribution
    to 401(k) plan and $1,520 payment for life insurance premium.                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

46



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| |     |                                                                                                                                                           
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------
| | (8) | Includes $8,400 matching contributions to 401(k) plan and $1,789
    payment for life insurance premiums.                                                 
|
| | (9) | Includes 10,000 shares of restricted stock granted on
    December 6, 2004, 2500 shares of which each vests on
    December 31, 2005, 2006, 2007 and 2008.



|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | Includes $7,665 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. Also included in the total are 303 shares of restricted
    stock granted as the stock portion of Mr. Demitrys
    2004 stock bonus. Such shares vested on March 24, 2005.
|    
|(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
    vested on June 30, 2005. To the extent that we pay dividends on
    our shares of Common Stock, Mr. Demitrys will be
    entitled to dividends only on the shares which are then vested.                                                                                                                                                                             
|    
|(14) | Includes $18,700 retention bonus and $6,878 matching
    contribution to 401(k) plan.                                                                                                                                                                                                                                                                                                                                                                                                             
|    
|(15) | Includes $5,712 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 which will vest
    on December 31, 2006. To the extent that 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
    vested on June 30, 2005. To the extent that 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) | Total includes 2,505 shares of restricted stock granted on
    July 1, 2004, which, 1,670 has vested and of which 835 will
    vest on December 31, 2006.                                                                                                                                                                                                                                                                                                                                         
|    
|(21) | Includes $6,712 matching contribution to 401(k) plan.                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    
|(22) | Includes $6,146 matching contribution to 401(k) plan.                                                                                                                                                                                                                                                                                                                                                                                                                                             




Stock Option Exercises and Holdings.





Aggregated Option Exercises During 2005 and December 31,
2005 Option Values


|                     |  |             |   |  |          |                        |                   |             |                      |                   |               |  |  |             |        |  |               |   |        |  |  |   |         | 
|-------------------- |  | ----------- | - |  | -------- | ---------------------- | ----------------- | ----------- | -------------------- | ----------------- | ------------- |  |  | ----------- | ------ |  | ------------- | - | ------ |  |  | - | ------- | 
|                     |  |             |   |  |          | Number of Securities   |                   |             | Value of Unexercised |                  
|                     |  |             |   |  |          | Underlying Unexercised |                   |             | In-the-Money         |                  
|                     |  |             |   |  |          | Option Shares at       |                   |             | Options at           |                  
|                     |  | Shares      |   |  |          |                        | December 31, 2005 |             |                      | December 31, 2005 |              
|                     |  | Acquired on |   |  | Value    |                        |                   |             |                      |                   |               | 
|Name                 |  | Exercise    |   |  | Realized |                        |                   | Exercisable |                      |                   | Unexercisable |  |  | Exercisable |        |  | Unexercisable |  
|                     |  |             |   |  |          |                        |                   |             |                      |                   |               |  |  |             |        |  |               |  
|Matthew M. OConnell |  |             |  |  |          |                        |                  |             |                      |                   | 18,123        |  |  |             | 27,184 |  |               | $ | 80,647 |  |  | $ | 120,969 | 
|William Schuster     |  |             |  |  |          |                        |                  |             |                      |                   | 5,566         |  |  |             | 16,696 |  |               |   |       |  |  |   |        | 
|Lee Demitry          |  |             |  |  |          |                        |                  |             |                      |                   | 9,612         |  |  |             | 14,419 |  |               |   | 42,773 |  |  |   | 64,165  | 
|Alex J. Fox          |  |             |  |  |          |                        |                  |             |                      |                   | 9,612         |  |  |             | 14,419 |  |               |   | 42,773 |  |  |   | 64,165  | 
|William L. Warren    |  |             |  |  |          |                        |                  |             |                      |                   | 8,544         |  |  |             | 12,815 |  |               |   | 38,021 |  |  |   | 57,027  | 

47



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Director Remuneration




Employment Agreements








48



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##### Table of Contents




















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

Equity Compensation Plan Information.





|                                                             |  |                         |         |  |                               |                         |                       |                             |  |  |         | 
|------------------------------------------------------------ |  | ----------------------- | ------- |  | ----------------------------- | ----------------------- | --------------------- | --------------------------- |  |  | ------- | 
|                                                             |  | (a)                     |         |  | (b)                           |                         |                       | (c)                         | 
|                                                             |  |                         |         |  |                               | Number of securities    |                      
|                                                             |  |                         |         |  |                               | remaining available for |                      
|                                                             |  | Number of securities to |         |  |                               |                         | future issuance under |                            
|                                                             |  | be issued upon exercise |         |  | Weighted average exercise     |                         |                       | equity compensation plans   | 
|                                                             |  | of outstanding options, |         |  | price of outstanding options, |                         |                       | (excluding securities       | 
|Plan Category                                                |  | warrants and rights(1)  |         |  | warrants and rights(2)        |                         |                       | reflected in column (a))(3) | 
|                                                             |  |                         |         |  |                               |                         |                       |                             | 
|Equity compensation plans approved by security holders(1)    |  |                         | N/A     |  |                               |                         | N/A                   |                             |  |  | N/A     | 
|Equity compensation plan not approved by security holders(1) |  |                         | 295,442 |  |                               | $                       | 0                     |                             |  |  | 129,927 | 
|                                                             |  |                         |         |  |                               |                         |                       |                             | 
|Total                                                        |  |                         | 295,442 |  |                               | $                       | 6.50                  |                             |  |  | 129,927 | 
|                                                             |  |                         |         |  |                               |                         |                       |                             | 









|    |                                                                                                                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The shares set forth in column (a) are comprised of shares
    of Common Stock that may be issued in the future pursuant to
    currently outstanding options for the purchase of Common Stock.                 
|   
|   
|(2) | The calculations of weighted average exercise prices are
    exclusive of restricted stock awards.                                                                                                              
|   
|   
|(3) | All of the shares set forth in column (c) with respect to
    the Incentive Plan may be issued pursuant to stock awards,
    including stock options, restricted stock grants and stock
    appreciation rights.




2003 Employee Stock Incentive Plan





49



---



##### Table of Contents








2004 Non-Employee Director Stock Incentive Plan








401(k) Employee Savings Plan








Security Ownership of Certain Beneficial Owners and
Management.





50



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##### Table of Contents
















|                                                           |  |                    |           |  |  |                          |            |  |      | 
|---------------------------------------------------------- |  | ------------------ | --------- |  |  | ------------------------ | ---------- |  | ---- | 
|                                                           |  | Number of Shares   |           |  |  |                          | Percent of | 
|Name and Business Address of Beneficial Owner              |  | Beneficially Owned |           |  |  |                          | All Shares | 
|                                                           |  |                    |           |  |  |                          |            | 
|Directors and Executive Officers*                          |  |                    |           |  |  |                          |            |  |      | 
|Matthew M. OConnell                                       |  |                    | 269,884   |  |  | (1)                      |            |  | 1.5  | 
|William Schuster                                           |  |                    | 15,564    |  |  | (2)                      |            |  |      | 
|Lee Demitry                                                |  |                    | 16,572    |  |  | (3)                      |            |  |      | 
|Alex J. Fox                                                |  |                    | 15,591    |  |  | (4)                      |            |  |      | 
|William L. Warren                                          |  |                    | 11,533    |  |  | (5)                      |            |  |      | 
|James A. Abrahamson                                        |  |                    | 5,000     |  |  | (6)                      |            |  |      | 
|Joseph M. Ahearn                                           |  |                    | 5,000     |  |  | (6)                      |            |  |      | 
|Talton R. Embry                                            |  |                    | 6,186     |  |  | (6)                      |            |  |      | 
|Lawrence A. Hough                                          |  |                    | 5,000     |  |  | (6)                      |            |  |      | 
|James M. Simon, Jr.                                        |  |                    | 3,331     |  |  | (6)(7)                   |            |  |      | 
|William W. Sprague                                         |  |                    | 5,000     |  |  | (6)                      |            |  |      | 
|All directors and executive officers as group (16 persons) |  |                    | 376,981   |  |  | (1)(2)(3)(4)(5)(6)(8)(9) |            |  | 2.2  | 
|                                                          
|5% Holders                                                 |  |                    |           |  |  |                          |            |  |      | 
|Harbert Distressed Master Fund, Ltd.(10)                   |  |                    | 5,991,800 |  |  | (11)                     |            |  | 34.3 | 
|River Run Management(12)                                   |  |                    | 2,019,595 |  |  | (13)                     |            |  | 11.6 | 
|Redwood Master Fund(14)                                    |  |                    | 1,544,137 |  |  | (15)                     |            |  | 8.9  | 
|Deephaven Distressed Opportunities Trading, Ltd.(16)       |  |                    | 1,042,962 |  |  | (17)                     |            |  | 7.4  | 
|Whitebox Advisors, LLC (18)                                |  |                    | 1,086,562 |  |  | (19)                     |            |  | 6.2  | 
|Ahab Partners (20)                                         |  |                    | 1,000,000 |  |  | (21)                     |            |  | 5.7  | 









|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|*   | Unless otherwise indicated, the address is c/o ORBIMAGE
    Holdings Inc., 21700 Atlantic Boulevard, Dulles, Virginia 20166.                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   
|   
|(1) | Total includes (i) 237,117 shares of restricted stock
    granted pursuant to Mr. OConnells employment
    agreement (ii) 7,143 shares as the stock portion of
    his 2005 annual performance bonus, which vested January 3,
    2006 (iii) 45,307 options to purchase Common Stock of which
    18,124 options as of December 31, 2005 and of which the
    remaining options which will vest equally on December 31,
    2006, 2007 and 2008 and (iv) warrants to
    purchase 7,500 shares of Common Stock.                                                                                 
|   
|   
|(2) | Total includes (i) 10,000 shares of restricted stock
    granted pursuant to Mr. Schusters employment
    agreement, which vest 2,500 shares on each of
    December 31, 2005, 2006, 2007 and 2008, (ii) 22,262
    options to purchase Common Stock, of which 5,564 vested as of
    December 31, 2005 and of which the remaining options will
    vest equally on December 31, 2006, 2007 and 2008.                                                                                                                                                                                            
|   
|   
|   
|(3) | Total includes (i) 6,504 shares of restricted stock
    granted on July 1, 2004 pursuant to the Companys
    reorganization bonus, of which 4,336 shares have vested and
    of which 2,168 shares will vest on December 31, 2006,
    (ii) 455 shares of restricted stock granted as the
    stock portion of Mr. Demitrys 2005 annual performance
    bonus, which vested on January 3, 2006, and
    (iii) 24,031 options to purchase Common Stock, of which
    9,613 vested as of December 31, 2005 and the remaining
    options will vest equally on December 31, 2006, 2007 and
    2008
|   
|   
|   
|(4) | Total includes (i) 5,549 shares of restricted stock
    granted on July 1, 2004 pursuant to the Companys
    reorganization bonus, of which 3,699 shares have vested and
    of which 1,850 shares will vest on December 31, 2006,
    (ii) 429 shares of restricted stock granted as the
    stock portion of Mr. Foxs 2005 annual performance
    bonus, which vested January 3, 2006, and (iii) 24,031
    options to                                                                                                                                                                        
|   

51



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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | purchase Common Stock, of which 9,613 vested as of
    December 31, 2005 and the remaining options will vest
    equally on December 31, 2006, 2007 and 2008                                                                                                                                                                                                                                                                                                                                                                                                                    
|   
|   
|(5) | Total includes (i) 2,505 shares of restricted stock
    granted on July 1, 2004 pursuant to the Companys
    reorganization bonus, of which 1,670 shares have vested and
    of which 835 shares will vest on December 31, 2006,
    (ii) 485 shares of restricted stock granted as the
    stock portion of Mr. Warrens 2005 annual performance
    bonus, which vested January 3, 2006, and (iii) 21,359
    options to purchase Common Stock of which 8,543 vested as of
    December 31, 2005 and the remaining will vest equally on
    December 31, 2006, 2007 and 2008.
|   
|   
|   
|(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) | Mr. Simon disclaims ownership of 1,466 of the
    3,331 shares listed above.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   
|   
|   
|(8) | Includes warrants to purchase 1,186 shares of Common
    Stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   
|   
|   
|(9) | Includes 18,320 options to purchase Common Stock issued to
    executive officers (other than Messrs. OConnell,
    Schuster, Demitry, Fox, and Puckorius).                                                                                                                                                                                                                                                                                                                                                                                                                    
|   



|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | 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.
|    
|(11) | Based on publicly available filings with the SEC through
    January 6, 2006, including Schedule 13D and Company
    records.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    
|(12) | Includes River Run Partners L.P., Cold Springs L.P. and River
    Run Fund Ltd. The address for River Run Management LLC, the
    management company for the funds is 152 West
    57th Street, 52nd Floor, New York, NY 10019.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    
|(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) | Address is 910 Sylvan Avenue, Englewood Cliffs, NJ 07632.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    
|(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 130 Cheshire Lane  Suite 102,
    Minnetonka, MN 55305.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    
|(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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

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|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(18) | 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 PSFLTD is
    Trident Chambers, P.O. Box 146, Waterfront Drive, Wickhams
    Cay, Road Town, Tortolla, British Virgin Islands.
|    
|(19) | 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    
|(20) | Ahab Partners L.P. and Ahab International Ltd own shares.
    Jonathan Gallen directs disposition of shares. The address for
    Jonathan Gallen is 299 Park Avenue, New York, NY 10171                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    
|(21) | Based on SEC filings as of December 9, 2005, Ahab Partners
    L.P. and Ahab International Ltd. own 800,000 shares and
    200,000 warrants of Company stock. Jonathan Gallen possesses
    sole power to vote and direct disposition of all securities and
    is deemed the beneficial owner under
    Rule 13d-3 of the
    Exchange Act.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         






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




Executive Compensation










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




Independent Public Accountants Fees.








Audit Fees 10-Q,








Audit-Related Fees





53



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##### Table of Contents






All Other Fees:








Policy on Audit Committee Pre-Approval of Audit and
Non-Audit Services.


















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

Exhibits


10-K/ 10-K





SIGNATURES






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



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

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









54



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##### Table of Contents



INDEX TO EXHIBITS





|               |    |               |  |                                                                             
|-------------- | -- | ------------- |  | ----------------------------------------------------------------------------
|Exhibit Number |    | Exhibit Title
|               |    |              
|               | 10 | .1            |  | Employment Agreement for Henry E. Dubois                                    
|               | 31 | .1            |  | Rule 13a-14(a) Certification of Matthew M. OConnell                        
|               | 31 | .2            |  | Rule 13a-14(a) Certification of Henry E. Dubois                             
|               | 31 | .3            |  | Rule 13a-14(a) Certification of Tony A. Anzilotti                           
|               | 32 | .1            |  | Certification Pursuant to 18 U.S.C. Section 1350 of
    Matthew M. OConnell
|               | 32 | .2            |  | Certification Pursuant to 18 U.S.C. Section 1350 of
    Henry E. Dubois     
|               | 32 | .3            |  | Certification Pursuant to 18 U.S.C. Section 1350 of
    Tony A. Anzilotti   




55