GeoEye Reports Fourth Quarter and Year-End 2007 Operating Results

DULLES, Va., March 12 /PRNewswire-FirstCall/ -- GeoEye, Inc.
(Nasdaq: GEOY) today reported its revenues of $183.8 million for the year
ended December 31, 2007, which was up 22 percent compared to 2006 sales of
$151.2 million. Gross profit was $107.1 million for the full year of 2007, a
57 percent increase from $68.3 million for 2006. Pre-tax earnings for the
full year were $70.0 million, a substantial increase from 2006 pre-tax
earnings of $24.1 million.
(Logo: here )
The Company is not releasing its net earnings and earnings per share
amounts for 2007 at this time because a complete analysis of a tax position
has not been completed, particularly with regard to a potential limitation in
the utilization of GeoEye's net operating loss (NOL) carryforwards due to a
possible ownership change as defined in Section 382 of the Internal Revenue
Code of 1986 has not yet been completed. The Company is continuing to analyze
its tax position and the utilization of its net operating losses to offset
operating income. Although the Company intends to file its annual report on
Form 10-K on a timely basis, this timing will depend on the completion of such
analysis. When completed, the form will be available on the Company's Web
site, www.geoeye.com, under Investor Relations.
The growth in revenues was attributable to a $29.9 million increase in
imagery and production revenues generated from the National Geospatial-
Intelligence Agency (NGA), GeoEye's largest customer, and from the operations
of MJ Harden Associates which were purchased in March 2007. MJ Harden is a
leading provider of digital aerial imagery and production services. The growth
in gross profit in 2007 was fueled by the increase in revenues as well as from
the absence of approximately $16 million depreciation expense on the OrbView-3
satellite. OrbView-3 experienced an on-orbit anomaly in March 2007 and was
declared a total loss, with the Company taking an impairment charge of
$36.0 million. GeoEye received $40 million in insurance proceeds for the loss
of OrbView-3 and recorded a net gain, after deducting unamortized insurance
premiums, of $3.0 million in 2007.
For the fourth quarter of 2007, revenues were $45.0 million compared to
$42.2 million in 2006. Gross profit was $23.4 million in the fourth quarter
of 2007 versus $20.2 million in 2006. Fourth quarter 2007 pretax earnings
were $15.9 million compared to $7.0 million in 2006.
GeoEye's cash balance was $234.3 million at December 31, 2007 compared to
$199.7 million at the end of 2006. During 2007, GeoEye repaid the remaining
$15.4 million balance of the $50 million debt that was incurred for the
purchase of the Space Imaging operations in January 2006.

Selected year-end operating results for the Company are as follows
(dollars in thousands):

Years Ended December 31,
2007 2006

Revenues $183,764 $151,168
Direct expenses 76,645 82,837
Gross profit 107,119 68,331
Selling, general and administrative expenses 29,794 25,103
Earnings from operations 77,325 43,228
Net gain on satellite insurance proceeds (3,010) --
Interest expense, net 7,276 21,744
Unrealized loss (gain) on derivative instrument 3,078 (2,636)
Earnings before provision for income taxes $69,981 $24,120

Business Segment Results

Revenues:
Imagery $147,448 $118,981
Production and Other Services 36,316 32,187
Total revenues $183,764 $151,168

Operating profit:
Imagery $65,137 $26,948
Production and Other Services 12,188 16,280
Total operating profit $77,325 $43,228

About GeoEye
GeoEye is the 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
will be launched in the coming months from Vandenberg Air Force Base in
California. GeoEye-1 will be the world's highest resolution and most accurate
commercial imaging satellite. GeoEye is a public company listed on the Nasdaq
stock exchange under the symbol GEOY. GeoEye provides support to academic
institutions and non-governmental organizations through the GeoEye Foundation.
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.
Safe Harbor Statement Under the Private Securities Litigation Reform Act
of 1995
This release contains forward-looking statements within the meaning of
Section 27A of the Securities Act and Securities Exchange Act of 1934, as
amended. These forward-looking statements involve known and unknown risks and
uncertainties. GeoEye's actual financial and operational results could differ
materially from those anticipated. Additional information regarding these
risk factors and uncertainties is described more fully in the Company's SEC
filings. A copy of all SEC filings may be obtained from the SEC's EDGAR web
site, www.sec.gov, or by contacting: William L. Warren, Senior Vice
President, General Counsel and Secretary, at 703-480-5672.
SOURCE GeoEye, Inc.

Mark Brender of GeoEye, Inc., +1-703-480-9562, brender.mark@geoeye.com; or Amy
Estes of LeGrand Hart, +1-303-298-8470, ext. 218, aestes@legrandhart.com, for
GeoEye, Inc.