CD&R, a leading private equity investor, announced that a fund it manages would invest up to $350 million in the satellite communications venture. CD&R has committed to invest $150 million in ICO-Teledesic Global and has the option to invest up to an additional $200 million in the company at a later date.

Gates, chairman and chief software architect of Microsoft Corporation, has committed to invest $100 million in ICO-Teledesic Global through his private investment vehicle, Cascade Investment LLC. Gates joined McCaw in 1994 as one of Teledesic's two primary founding investors.

ICO-Teledesic Global also has received $500 million from Eagle River Investments LLC, McCaw's private investment company. This $500 million was part of the previously announced $1.2 billion McCaw-led successful financial restructuring of London-based New ICO. ICO-Teledesic Global used those funds to help secure a controlling interest in New ICO, formerly ICO Global Communications, which emerged from Chapter 11 on May 17.

ICO-Teledesic Global plans to be a global provider of wireless Internet-in-the-Sky(R) satellite communications services, including Internet Protocol-based mobile and fixed broadband services.

Building on its core capabilities of high-quality, mobile voice services, New ICO will also offer the satellite equivalent of third-generation (3G) wireless services, including wireless Internet and other packet-data services.

New ICO will begin offering its services worldwide in 2003. Teledesic will deliver affordable broadband data and value-added services over a global network optimized for the Internet Protocol. Its target service date is late 2004.

"We look for opportunities to apply our operating skills to build strong businesses and our investment in ICO-Teledesic Global fits that strategy. We believe its focus on high-speed wireless data and emerging new applications positions the company for success," said Donald J. Gogel, chief executive of CD&R.

"We are pleased to be partners with Craig McCaw, Bill Gates and the other international investors and plan to add the operating expertise of our partnership to this extraordinarily capable team."

CD&R operating partner George W. Tamke will serve on the ICO-Teledesic Global board. Tamke is the former vice chairman and co-CEO of Emerson Electric Co.

McCaw said, "We're honored and humbled to have such sophisticated international investors as part of our team. We're further honored that Bill Gates continues to be an outstanding partner and supporter. We greatly appreciate his participation." McCaw is chairman of ICO-Teledesic Global in addition to his role as chairman of New ICO and founder and chairman of Teledesic LLC.

Other leading investors in ICO-Teledesic Global have invested $65 million, including Indian media entrepreneur Subhash Chandra, and Burtington Resources Inc., a private investment vehicle of Swiss investors Jack and Philippe Setton.

ICO-Teledesic Global has proposed a merger of New ICO and Teledesic with ICO-Teledesic Global. The merger of New ICO into ICO-Teledesic Global is subject to approval by the New ICO board and shareholders as well as regulatory authorities.

Teledesic's board of directors has already approved the merger of Bellevue, Washington-based Teledesic into ICO-Teledesic Global. This merger also remains subject to shareholder and regulatory approvals. Once the mergers are completed, New ICO and Teledesic will be wholly owned subsidiaries of ICO-Teledesic Global.

Background

About Clayton, Dubilier & Rice, Inc.
Clayton, Dubilier & Rice, Inc. is a private investment firm that manages a pool of equity capital of more than $3.5 billion on behalf of public and private pension funds, college endowments, private foundations, banks and insurance companies. Since its founding in 1978, CD&R has led investments in 33 businesses, including Lexmark International Inc., Fairchild Dornier and Kinko's Inc., with aggregate annual sales of over $21 billion. Last week, a CD&R and Cisco Systems Inc.-led investor group announced that they would buy 80 percent of Italtel, a telecommunications equipment maker in Italy, from Telecom Italia in a transaction valued at approximately $1 billion. CD&R has offices in New York, Menlo Park and London. To learn more about CD&R, visit www.cdr-inc.com.

About New ICO
New ICO acquired the assets of ICO Global Communications (Holdings) Limited, established in January 1995 to provide global mobile personal communications services by satellite. ICO Global Communications was listed on NASDAQ in July 1998. The stock was suspended from trading when the company filed for Chapter 11 protection on August 27, 1999. The business was renamed New ICO following its emergence from Chapter 11 protection on May 17. New ICO will offer the satellite equivalent of third-generation (3G) wireless services, including mobile voice, wireless Internet and other packet-data services. New ICO (pronounced "EYE-co") is based in London with offices in Washington, D.C.; Miami; Singapore; Beijing; Mumbai, India; Dubai; Moscow; Istanbul, Turkey; and Pretoria, South Africa.

About Teledesic
Telecommunications pioneer Craig McCaw and Microsoft founder Bill Gates are Teledesic's two primary founding investors. Strategic investors also include Motorola, Saudi Prince Alwaleed Bin Talal, The Boeing Company and The Abu Dhabi Investment Company. Teledesic is the first licensed satellite communications network that will enable affordable, worldwide access to advanced telecommunications services such as computer networking, broadband Internet access and interactive multimedia. Teledesic will deliver broadband data and value-added services over a global network optimized for the Internet Protocol. Teledesic (pronounced "tel-eh-DEH-sic") is based in Bellevue, a suburb of Seattle, Washington, with offices in Brussels, Belgium; London, United Kingdom; Madrid, Spain; Munich, Germany; Ottawa, Canada; and Washington, D.C.