TELESAT CANADA AND LORAL SKYNET CLOSE MERGER
Combination strengthens Ottawa-based company, the world’s fourth-largest satellite operator

OTTAWA, CANADA, OCTOBER 31, 2007 - Telesat Canada today announced the closing of its acquisition for CAD $3.25 billion by a Canadian-controlled company owned indirectly by Canada’s Public Sector Pension Investment Board (PSP Investments) and Loral Space & Communications Inc., and the transfer of substantially all of the assets of Loral Skynet Corporation to Telesat.

The Ottawa-based company is the fourth-largest fixed satellite services provider in the world.  As a result of the transaction, it has a global state-of-the-art fleet of 12 satellites, three additional satellites under construction, and a robust global teleport and fibre infrastructure that Telesat has seamlessly integrated with its satellite fleet to provide users with a range of advanced network solutions.

The new Telesat retains all the best features of both Telesat Canada and Loral Skynet, but now has significantly greater geographic coverage, fleet depth, and commercial resources. 

“By bringing together Telesat Canada and Loral Skynet, two of the world’s preeminent satellite companies, we have created a powerful new operator with world-class satellites, comprehensive terrestrial facilities, and a dedicated, experienced team of satellite professionals,” said Dan Goldberg, President and CEO of Telesat. “The Telesat team is passionate about providing our customers with the most reliable, secure and innovative satellite communications services and the highest level of customer support.  I look forward to working with our new shareholders and my colleagues at Telesat to reduce our outstanding debt and grow our business going forward.”

Telesat’s assets include:

• A global fleet of 12 satellites in-orbit with three additional satellites under construction; two of the additional satellites are fully contracted to Canada’s Bell ExpressVu for direct-to-home satellite services;
• Leading video distribution satellites serving broadcasters, cable networks and other content creators in North America, Latin America, Europe, Asia, the Middle East and Africa;
• Extensive teleport and fibre infrastructure seamlessly integrated with Telesat’s global satellite fleet to provide advanced network solutions throughout the world;
• Deep expertise in the design, implementation and management of satellite and hybrid satellite/terrestrial networks for broadcast, telecom, corporate and government users, including the management of over 26,000 VSAT terminals throughout the world;
• A leading satellite consulting services division that provides high-value expertise and support to satellite operators, insurers, and other industry participants on a global basis, including procurement of satellites and launch services and the provision of tracking, telemetry and control (TT&C) services for 13 third-party satellites;
• Leadership in rapidly growing Ka-band communications across North America for broadband enterprise, government and consumer services;
• A record of technical innovation and industry firsts from two satellite pioneers. Loral Skynet deployed the first commercial communications satellite, Telstar 1, in 1962; Telesat Canada launched the first domestic commercial satellite in the world, Anik A1, in 1972; and
• Strong, stable cash flows underpinned by over CAD $5 billion in contractual backlog with blue chip customers that will allow Telesat to continue to expand its satellite fleet and develop new products and services for its growing customer base while strengthening its balance sheet.

About Telesat (www.telesat.com)

Headquartered in Ottawa, Canada, with offices and facilities around the world, Telesat is the fourth largest fixed satellite services operator. The company provides reliable and secure satellite-delivered communications solutions to broadcast, telecom, corporate and government customers. Telesat has a global state-of-the-art fleet of 12 satellites and three additional satellites under construction, and manages the operations of 13 additional satellites for third parties. Telesat is privately held. Its principal shareholders are Canada’s Public Sector Pension Investment Board and Loral Space & Communications Inc. (NASDAQ: LORL). 

For more information:

Dan Tisch or Kyla Thoms (media only)
Argyle Communications
 (416) 968-7311, ext 223 or 237
dtisch@argylecommunications.com
kthoms@argylecommunications.com