California-based Magellan designs, manufactures,and markets satellite access products for consumer, commercial and industrial applications. The company is a pioneer in developing positioning and navigation equipment using the United States government's Global Positioning System (GPS). Magellan has a distinct advantage over any other commercial positioning and navigation developer in the world because it uses not only the GPS satellite system developed by the U.S. military but also the Russian Space Forces Global Navigation Satellite System, or GLONASS. Users of Magellan's GPS receivers can plot their positions anywhere on Earth, helping them navigate from point to point and perform other navigation, location, tracking, mapping, plotting and timing functions.

The company is at the leading edge in developing end-user products for the emerging satellite communications market. In June Magellan will be shipping the GSC 100, the world's first hand-held global satellite communicator. The GSC 100 will offer two-way text messaging via the ORBCOMM low-Earth-orbit satellite network, providing communication to and from the Internet or from GSC 100 to GSC 100 anywhere on Earth.

Magellan's key markets include automotive, aviation, geo-sciences, mapping, marine, outdoor recreation, survey, vehicle tracking and navigation, systems integration and wireless communications. The company's products are sold throughout the United States and worldwide by more than 100 international distributors and 12,000 retail outlets. Foreign sales of Magellan GPS products account for about 35% of the company's total annual sales.

Magellan's headquarters are in Sunnyvale, California. International offices are in the United Kingdom, Germany, and Hong Kong. Product development, research, and manufacturing centers are located in Sunnyvale and San Dimas, California; Rochester Hills, Michigan; Taiwan; and Moscow.

Company History

Magellan was incorporated in 1986 as a venture capital startup and a feasibility study was begun to determine the technical requirements and market potential for an affordable, hand-held GPS navigation device. The company began operations in 1987, and two years later shipped Magellan's first product, the NAV 1000, the world's first commercial, hand-held GPS receiver.

In 1994, Magellan was acquired by Orbital Sciences Corporation (NYSE:ORB), a diversified commercial space products company with interests in low-cost launch vehicles, small satellites, space sensors, avionics, satellite tracking systems, Earth observation systems and related services and products.

In 1997, Magellan acquired Rockwell international's vehicle navigation technology, a key component in
what will become the intelligent car of the future. That year Magellan merged with Ashtech Inc., a developer of high-precision positioning and navigation products using both GPS and Russia's GLONASS satellite system. The merged operation employs about 500 people and has combined revenues of $125 million.

Magellan Consumer Products

Magellan's affordable consumer products have brought satellite navigation within reach of people everywhere. In 1997, Magellan introduced the world's first hand-held GPS priced under $100. The GPS 300, GPS 2000 XL*, GPS Tracker* and ColorTRAK receivers are designed specifically for the recreation market, including boating, camping, fishing, hiking, hunting, off-road driving, sailing, snowmobiling, and skiing. For the big picture, Magellan offers the hand-held NAV 6000* and panel-mount NAV 6500* chartplotters, combining digital C-MAP electronic charts and a powerful GPS receiver.

Magellan also designs and manufactures GPS receivers for aviation. The hand-held SkyStar PLUS* with moving map display, and the portable EC-10X* with terrain cartography and aviation database meet the position, navigation, flight planning and operations needs of pilots around the world.

Ashtech Professional Products

Ashtech, the leader in precision solutions for global positioning is Magellan's high-end professional product division. Ashtech offers GPS and GPS+GLONASS solutions for surveying, mapping, GIS data collection, and OEM products for timing, positioning and navigation. Ashtech's product line includes the powerful Z-Surveyor* and Z-SuperStation dual-frequency GPS systems for surveying applications requiring real-time or post-processed centimeter-level accuracy; the GG-Surveyor, the world's first surveying system to utilize both GPS and Russian GLONASS satellites; and Reliance* systems for high-productivity GIS data collection.

Magellan also offers the versatile ProMARK X-CMTM with carrier-phase, centimeter-level differential GPS capability; the economical hand-held FieldPRO VTM; the 12-channel MBS-2TM base station; and the DGPS-1TM differential GPS receiver system.

Driver Information Systems

Magellan's Driver Information Systems Group develops vehicle navigation, information and route guidance systems for private passenger automobiles and auto fleets. Today more than 10,000 vehicles in the United States are equipped with Magellan's PathMaster navigation device. The world's largest single fleet of car navigation systems belongs to Hertz, which has 8,000 Magellan devices. In these cars the PathMaster is branded

*NeverLost.*

With a PathMaster system a driver travels a route by selecting from one of hundreds of local destinations, including hotels, ATMs, airports, and tourist attractions, as well as individual street addresses. Once the driver sets the destination, PathMaster employs GPS satellites, dead-reckoning, and map-matching to locate the vehicle; then it guidesthe driver with visual and voice prompts turn-by-turn to her destination.

The current PathMaster and subsequent Magellan intelligent car products will be sold commercially through an expanding network of specialty retailers, including Sharper Image stores and Cabela's Catalog, as well as through automotive aftermarket stores and dealerships. GPS-based vehicle navigation systems are expected to become a $10 billion market by 2004. Magellan will provide components at every level of integration for the intelligent car of the future, from devices that combine positioning, navigation and communications to licensed technology for safety and on-board PC's.

Wireless Communications

Magellan brings to market advanced wireless communications devices for all three types of satellite communications systems: Low Earth Orbit (LEO), Medium Earth Orbit (MEO) and Geo-Stationary Earth Orbit (GEO). The company currently offers global voice, fax and data communications via the Magellan WORLD PHONE portable satellite telephone and the WORLD PHONE MARINE satphone using the Inmarsat satellite system. In June 1998, consumers will be able to purchase the Magellan GSC 100, the world's first hand-held global satellite communicator combining GPS navigation capability and two-way global text messaging via the ORBCOMM LEO satellite communications service.

Technology Licensing

Magellan licenses its GPS and GPS+GLONASS technology to other equipment manufacturers for sale and distribution in foreign markets. Ashtech's G8 GPS OEM board is used by systems integrators and OEM providers for high-volume applications such as car navigation, fleet management and consumer products. The G8 chip set is also available through Ashtech's partnership with Philips Semiconductor.