Carlsbad, CA - ViaSat, Inc. (Nasdaq: VSAT) reports results for its second quarter of fiscal year 2003, ended September 30, 2002. Sales for the quarter were $39.5 million compared with $49.5 million for the comparable quarter last year.

Actual net loss was $4.2 million or $0.16 per share for the second quarter of fiscal year 2003, based on 26.0 million weighted average shares. This compares with net income of $0.5 million or $0.02 per share for the prior year, based on 23.4 million weighted average shares. Pro forma net loss, which excludes the effects of acquisition charges (amortization of goodwill and intangible assets), was $2.9 million or $0.11 per share for the second quarter of fiscal year 2003. This compares with pro forma net income of $3.2 million or $0.14 per share for the second quarter of fiscal year 2002.

Sales were $82.4 million for the six months ended September 30, 2002, compared with $98.4 million in sales for the same period last year. Pro forma net loss, which excludes the effects of acquisition charges, for the most recent six months was $3.2 million, or $0.12 per share based on 26.0 million weighted average shares. This compares with pro forma net income of $6.6 million or $0.28 per share for the first six months of last year based on 23.2 million weighted average shares.

Results for the fiscal second quarter were affected by difficulties in ViaSat's broadband and VSAT businesses, while the company continued demonstrating its strengthening presence in serving the government and defense markets. ViaSat received $63.0 million in new firm orders during the second quarter showing a strong book-to-bill ratio in excess of 1.5 to 1. New orders were led again by defense customers and applications, which accounted for two-thirds of the awards. At the close of the second quarter, the company's backlog of firm orders was $200 million (or $248 million including options and Indefinite Delivery/Indefinite Quantity (IDIQ) contracts) compared to $253 million (or $337 million including options and IDIQ contracts) at the close of the second quarter last year.

Improving Government segment and Satellite Ground Systems performance was offset by several factors: a cost overrun on a broadband program while it transitioned from development into the initial phases of production, which was resolved early in the fiscal third quarter; lower margins in the commercial VSAT products business area from market pricing pressure, changes in product sales mix and cost over-runs on certain projects; and, continuing start-up investments at the company's U.S. Monolithics subsidiary.

"While fiscal second quarter results in our commercial businesses were disappointing, it is clear that the record pace of new contract awards received in our first half are transforming ViaSat back into a defense-driven growth company," said Mark Dankberg, chairman, president and CEO. "We've spent the last 12 months transitioning from an abrupt decimation of our broadband business to expected growth in defense contracts. In the first half of this year we invested in R&D, new products and new proposals and in retaining our work force in anticipation of these new awards. We're now beginning to see the benefits of these investments as indicated by order flow and a solid book-to-bill ratio.

"The change in our business mix has positioned us for more stable, predictable growth going forward. During FY02 two-thirds of our revenue was from broadband and standard commercial products. In the first half of this year, over two-thirds of our new contract awards are for defense applications. Our government systems division, in just the first half of this year, has already been awarded contracts approaching 1.5 times all of last year's government sales, and we are seeing rapid growth in our government backlog. Although our commercial businesses saw greater-than-anticipated challenges in the fiscal second quarter, we've addressed those issues within our control and believe that our third quarter and fourth quarter outlooks indicate strong sequential growth due to the conversion of these new contracts into sales as well as a sustained pipeline of additional new target contracts."

"Despite the challenges we faced in the commercial business, we made significant progress on a number of key financial and operational metrics," added Ron Wangerin, ViaSat vice president and CFO. "During the quarter, we generated cash from operating activities of approximately $5 million resulting from improving trends in unbilled and total accounts receivables, and reduced inventory levels. Additionally, we signed an amended revolving credit facility for $20 million that extends the expiration date of the facility to June 30, 2003 and we are continuing to work on our next amendment, which will further enhance our credit facility. These achievements leave us financially well positioned to support our growth as we execute on recent contract awards and grow our new business pipeline."

Second Quarter Business Highlights

Some specific highlights follow:
  - Our defense information security business is generating our most substantial growth. This area has already obtained over $30 million in new contract awards compared to less than $5 million per year in sales in prior years. Previously announced contracts in this area include Gigabit Ethernet, and the JTRS, and FAB-T subcontracts on Boeing-led teams. In addition, over $20 million in potential other new information security awards are still in evaluation or negotiation with resolutions anticipated during this current fiscal year.
  - We have achieved strong performance to date for our line of defense UHF satellite terminal products. Our government mobile satcom systems business area has received over $29 million in orders year to date (including a previously disclosed $16.4 million order with Raytheon). These include awards for our new line of software defined satellite radios, as well as antenna combining units, and other standard products. Six-month year to date orders in this area are already approaching twice that of our full fiscal year 2002 sales of these products.
  - Our Atlanta-based Satellite Ground Systems division has rebounded from the broadband decline led by new orders for government applications including previously announced subcontracts totaling over $14 million from ITT systems on the Wideband Gapfiller Satellite (WGS) system and the Space Lift Range Systems telemetry upgrade. The WGS contract is especially noteworthy because it directly migrates commercial Ka-band broadband antenna technology to the Department of Defense.
  - ViaSat expects to complete its ArcLight� software development program this month. ArcLight is the first CDMA broadband interactive VSAT system from a leading provider. The combination of CDMA with our PCMA cancellation technology is expected to offer security and unprecedented satellite bandwidth efficiency � translating to substantial operating cost savings. ArcLight technology also integrates into our customers' new and existing LinkStar� hub/spoke networks, and the first beta system order has already shipped with the second beta delivery next month.
  - Our COMSAT Labs VSAT unit earned new contracts with Tatanet of India, and the SpeedCast, Ltd. affiliate of AsiaSat in Hong Kong.
  - A recent contract with ARINC brings our ArcLight technology to the in-flight business jet broadband market � sustaining and enhancing our technology leadership in CDMA and PCMA broadband satellite systems.

ViaSat produces advanced digital satellite telecommunications and wireless signal processing equipment for commercial and government markets. ViaSat has a full line of VSAT products for data and voice applications. ViaSat is a market leader in Ka-band satellite systems, from user terminals to large gateways. Other products include network security devices, tactical data radios, and communication simulators. ViaSat has locations in Carlsbad, CA, and Norcross, GA, along with its Comsat Laboratories division based in Clarksburg, MD. Additional field offices are located in Boston, MA, the United Kingdom, Italy, Australia, Chile, China, and India. In addition, ViaSat's wholly-owned subsidiary, U.S. Monolithics, designs and produces monolithic microwave integrated circuits (MMICs) and modules for use in broadband communications. USM is based in Chandler, Arizona.

Safe Harbor Statement
Portions of this release, particularly the 'Second Quarter Business Highlights' section, may contain forward-looking statements regarding future events and are subject to risks and uncertainties. ViaSat wishes to caution you that there are some factors that could cause actual results to differ materially, including but not limited to: ViaSat's ability to perform under existing contracts and obtain additional contracts, ViaSat's ability to develop new products that gain market acceptance, changes in product supply, pricing and customer demand, changes in relationships with, or the financial condition of, key customers or suppliers, changes in government regulations, changes in economic conditions globally and in the communications markets in particular, increased competition, potential product liability, infringement and other claims, and other factors affecting the communications industry generally. ViaSat refers you to the documents it files from time to time with the Securities and Exchange Commission, specifically the section titled Factors That May Affect Future Performance in ViaSat's 2002 Form 10-K and subsequent 10-Q's. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statements.

Comsat Labs and Comsat Laboratories are tradenames of ViaSat, Inc. Neither Comsat Labs nor Comsat Laboratories is affiliated with COMSAT Corporation. 'Comsat' is a registered trademark of COMSAT Corporation.

ArcLight and LinkStar are tradenames of ViaSat, Inc.

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