GeoEye, Inc. today reported its revenues of $40.7 million for the fourth quarter of 2008 and $146.7 million for the year ended December 31, 2008. Revenues for the quarter were down $2.9 million, or seven percent, compared to $43.6 million for the fourth quarter 2007 and down $36.3 million, or 20 percent, compared to $183.0 million for the full year 2007. The decreases for the quarter and year are primarily due to a shortfall in imagery orders from the National Geospatial-Intelligence Agency and other customers due to the delay of the launch and checkout of the Company's GeoEye-1 satellite. The fourth quarter decrease was partially offset by increased revenue from the sale of ground station upgrades of $7.2 million. The Company's GeoEye-1 satellite completed its checkout and was certified by the National Geospatial-Intelligence Agency on February 20, 2009. "Last year was obviously disappointing," said the Company's Chief Executive Officer, Matt O'Connell. "We're gratified that GeoEye-1 was certified by our biggest customer, the National Geospatial-Intelligence Agency, in February so that we can finally begin operations under our Service Level Agreement with them and begin serving our international and commercial customers."

Earnings from operations were $3.7 million for the fourth quarter 2008 and $22.8 million for the full year 2008. Earnings from operations for the quarter were down $12.3 million, or 77 percent compared to $16.0 million for the fourth quarter 2007. For the full year 2008, earnings from operations were down $56.4 million, or 71 percent, compared to $79.2 million in 2007. The declines for the quarter and the year were due primarily to the previously discussed revenue shortfall, an increase in direct costs and increased SG&A due to additional staff to support the ramp-up of GeoEye-1 as well as increased professional fees as a result of restatements of our financial statements during 2008. In addition, we recognized $3.3 million losses due to inventory impairment and satellite impairment settlement.

Our net loss for the fourth quarter of 2008 was $3.6 million compared to net earnings of $7.0 million for the corresponding period in 2007. Net earnings for 2008 were $26.6 million, compared to $28.5 million for 2007. Net earnings for 2008 include a net $25.5-million income-tax benefit resulting from the reversal of charges recorded in 2007. This change results from the reversal of the accrued tax penalties and interest for the cost-share payments under the NextView program with the National Geospatial-Intelligence Agency.

Our cash and short-term investments balance was $110.5 million at December 31, 2008, as compared to $234.3 million at December 31, 2007. The decrease from the 2007 cash balance primarily reflects payments made to complete our GeoEye-1 program and income taxes paid related to the GeoEye-1 cost-share payments.

Selected year-end financial results for the Company are as follows (dollars in thousands, except earnings per share):


                                                    Fourth Quarter
                                         2008           2007        Variance
                                                    (As restated)
    Revenues                           $40,688        $43,552       $(2,864)
    Direct expenses                     21,690         19,512         2,178
    Depreciation and amortization        2,667          2,850          (183)
    SG&A and other                      12,680          5,215         7,465
    Earnings from operations             3,651         15,975       (12,324)
    Net (loss) earnings                $(3,639)        $6,971      $(10,610)
    Earnings per share - basic          $(0.20)         $0.41        $(0.61)
    Earnings per share - diluted        $(0.20)         $0.42        $(0.62)


                                              Year Ended December 31,
                                         2008          2007         Variance
                                                   (As restated)
    Revenues                          $146,659       $183,023      $(36,364)
    Direct expenses                     76,241         64,628        11,613
    Depreciation and amortization       11,357         16,474        (5,117)
    SG&A and other                      36,261         22,737        13,524
    Earnings from operations            22,800         79,184       (56,384)
    Net (loss) earnings                $26,615        $28,470       $(1,855)
    Earnings per share - basic           $1.48          $1.62        $(0.14)
    Earnings per share - diluted         $1.36          $1.44        $(0.08)


                                             Year Ended December 31,
                                         2008          2007        Variance
                                                   (As restated)
    Cash and cash equivalents         $106,733       $226,761     $(120,028)
    Other Current Assets                85,131         61,438        23,693
    Satellites and PP&E                510,893        419,837        91,056
    Other Non-Current Assets            91,848        145,054       (53,206)
        Total Assets                  $794,605       $853,090      $(58,485)
    Total Current Liabilities          115,986        126,151       (10,165)
    Long-Term Portion of Deferred
     Revenue                           199,317        193,860        (5,457)
    Long-Term Debt and Other           248,898        339,870       (90,972)
    Stockholder's Equity               230,404        193,209        37,195
        Total Liabilities and Equity  $794,605       $853,090      $(58,485)


                                         2008           2007        Variance
                                                   (As restated)
    Net cash (used in) provided by
     operating activities              $(1,872)       $70,933      $(72,805)
    Net cash used in investing
     activities                       (124,187)       (32,441)      (91,746)
    Net cash provided by (used in)
     financing activities                6,031         (6,107)       12,138
    Net (decrease) increase in cash
     and cash equivalents             (120,028)        32,385      (152,413)
    Cash and cash equivalents,
     beginning of period               226,761        194,376        32,385
    Cash and cash equivalents, end
     of period                        $106,733       $226,761     $(120,028)

About GeoEye

GeoEye is a premier provider of geospatial information, imagery and solutions for the national security community, strategic partners, resellers and commercial customers to help them better map, measure and monitor the world. GeoEye operates a constellation of Earth imaging satellites, mapping aircraft and has an international network of ground stations, a robust imagery archive, and advanced geospatial imagery processing capabilities. GeoEye-1 is currently the highest resolution commercial imaging satellite. GeoEye is a public company listed on the Nasdaq stock exchange under the symbol GEOY. Headquartered in Dulles, Virginia, GeoEye maintains a comprehensive Quality Management System (QMS), and has achieved company-wide ISO accreditation. For more information, visit www.geoeye.com.