DDI to Liquidate Iridium Japan

TOKYO (02/17/2000) - Japanese telecommunications company DDI Corp. has decided to sever ties with satellite telecommunications company Iridium LLC and liquidate Nippon Iridium Corp., a local joint venture that provides Iridium service in Japan.

DDI Chairman and President Yusai Okuyama made the announcement at a regular press conference this afternoon, spokeswoman Kyoko Kakishima confirmed.

The DDI group holds a 50.5 percent stake in Nippon Iridium and has already begun talks with other shareholders regarding liquidation of the Japanese company, said Okuyama. These include Kyocera Corp., which holds a 10 percent stake in the company and is a major shareholder in DDI Corp.

Iridium, which owns a constellation of 66 satellites from which it offers a wireless telecommunications service, filed for bankruptcy in August 1999 after defaulting on two loan payments, one of which was for a US$1.5 billion loan.

Later in the same month the company proposed a restructuring plan which led to the injection of $20 million of fresh capital from Motorola Inc. to fund operations from Dec. 16, 1999, to Feb. 15.

Last week Iridium announced Craig McCaw has launched a rescue bid for the company. Leading a team of investors, McCaw announced $74.6 million in interim financing last week [See "Craig McCaw Leads White Knight Charge for Iridium," Feb. 10].

DDI Corp., in Tokyo, can be found online at http://www.ddi.co.jp/. Iridium, in Washington, D.C., can be reached at +1-202-408-3800 or at http://www.iridium.com.