We believe that the elimination of material non-cash, non-operating items enables a more consistent measurement of period to period performance of our operations. In addition, we believe that elimination of these items in combination with the addition of the non-refundable EnhancedView deferred revenue and EnhancedView outstanding invoices not yet paid by NGA, as well as amortization of pre-FOC payments related to NextView facilitate comparison of our operating performance to companies in our industry. We believe this Adjusted EBITDA measure is particularly important in a capital intensive industry such as ours, in which our current period depreciation is not a good indication of our current or future period capital expenditures. The cost to construct and launch a satellite and build the related ground infrastructure may vary greatly from one satellite to another, depending on the satellite's size, type and capabilities. For example, our QuickBird satellite, which we are currently depreciating, cost significantly less than our WorldView-1 and WorldView-2 satellites. Current depreciation expense is not indicative of the revenue generating potential of the satellite.

Adjusted EBITDA excludes interest income, interest expense, income taxes and loss on early extinguishment of debt because these items are associated with our capitalization and tax structures. Adjusted EBITDA also excludes depreciation and amortization expense because these non-cash expenses reflect the impact of prior capital expenditure decisions which are not indicative of future capital expenditure requirements. Adjusted EBITDA excludes non-cash stock compensation expense, because these items are non-cash expenses and loss on derivative instrument and disposal of assets because these are not related to our primary operations.

We use Adjusted EBITDA in conjunction with traditional GAAP operating performance measures as part of our overall assessment of our performance and we do not place undue reliance on this measure as our only measure of operating performance. Adjusted EBITDA should not be considered a substitute for other measures of financial performance reported in accordance with GAAP.

FINANCIAL TABLES TO FOLLOW

                                                                            
                                                                            
                           DigitalGlobe, Inc.                               
            Condensed Consolidated Statements of Operations                 
                                                                            
                                                                            
                                     Three Months Ended      Year Ended     
                                        December 31,        December 31,    
                                     ------------------  ------------------ 
(in millions, except per share data)   2009      2010      2009      2010   
------------------------------------ --------  --------  --------  -------- 
Historical results of operations:        (unaudited)                        
Defense and Intelligence revenue     $   57.5  $   63.2  $  231.0  $  252.1 
Commercial revenue                       15.4      20.4      50.9      70.1 
                                     --------  --------  --------  -------- 
  Total revenue                          72.9      83.6     281.9     322.2 
Cost of revenue excluding                                                   
 depreciation and amortization            8.9      10.5      31.1      41.7 
Selling, general and administrative      23.0      31.3      88.6     112.5 
Depreciation and amortization            18.2      29.6      74.4     118.9 
                                     --------  --------  --------  -------- 
  Income from operations                 22.8      12.2      87.8      49.1 
Loss from early extinguishment of                                           
 debt                                       -         -      (7.7)        - 
Loss on derivative instruments              -         -      (1.8)        - 
Interest income (expense), net                -            (9.0)            0.1          (39.6)
                                                                          --------    --------    --------    --------  
    Income  before  income  taxes                          22.8              3.2            78.4              9.5  
Income  tax  expense                                              (9.0)          (1.9)        (31.0)          (5.4)
                                                                          --------    --------    --------    --------  
    Net  income                                                  $      13.8    $        1.3    $      47.4    $        4.1  
                                                                          ========    ========    ========    ========  
                                                                                                                                                        
Earnings  per  Share:                                                                                                                  
    Basic  earnings  per  share                      $      0.32    $      0.03    $      1.07    $      0.09  
    Diluted  earnings  per  share                  $      0.30    $      0.03    $      1.06    $      0.09  
Weighted  average  common  shares                                                                                            
  outstanding                                                                                                                                
    Basic                                                                    43.2            45.9            44.2            45.7  
    Diluted                                                                45.6            46.4            44.9            46.1  
 

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