Satellite operator to expand its fleet - and Canada's television universe
    - with Nimiq 2.

OTTAWA,June 28 2001 --Canada's television universe is set to expand
once more, as Telesat Canada announced the start of construction of a new
direct broadcast satellite (DBS) that will begin service in early 2003. The
world's most experienced satellite operator has selected Lockheed Martin
Commercial Space Systems as the manufacturer and International Launch Services
as the launch provider for the Nimiq 2 satellite.
    "Today's announcement of plans for Nimiq 2 is yet another sign that
Telesat is aggressively growing its satellite fleet for the future," said
Larry Boisvert, Telesat's president and CEO. "Telesat's second direct
broadcast satellite will enable the continued expansion of our business. We're
very pleased to work once again with Lockheed Martin and ILS - Telesat's
partners in the building and launch of the historic Nimiq 1 satellite in
1999."
    Telesat has concluded an agreement with Bell ExpressVu, the Canadian
direct-to-home television provider that uses DBS frequencies, for capacity on
the new satellite. Telesat's Nimiq 2 will provide Bell ExpressVu with
continuity of service and a platform for growth of its services.

    Nimiq 2: The newest addition to Telesat's growing fleet.
    Since the launch of Nimiq 1 in 1999, Telesat has been steadily expanding
its fleet. In February 2001, the new Anik F1 satellite went into service,
enabling Telesat to offer service throughout North and South America for the
first time. Anik F2, a satellite with Ka-band multimedia capabilities, is now
under construction and is scheduled for launch in late 2002. Last week, the
company received federal approval for its plan to launch Anik F3. Telesat also
continues to operate two Anik E satellites, as well as Anik C1 and MSAT-1 for
other customers.
    Telesat expects to begin service on Nimiq 2 in 2003. The high-power
spacecraft features 32 active 24 MHz Ku-band transponders with 120-watt power
amplifiers. Nimiq 2 also has a Ka-band payload that will provide capacity for
broadband services.
    Nimiq 2 will have a minimum service life of 12 years following its launch
on an Atlas V rocket from Cape Canaveral, Florida. The name Nimiq - an
Inuktitut word for any object or force that unites things or binds them
together - was chosen from 36,000 submissions in a national contest in 1998.

    About Telesat
    Telesat is the world's most experienced commercial satellite operator.
The Ottawa-based company made history in 1972 with the launch of the first
domestic commercial communications satellite in geostationary orbit. Today,
Telesat competes with the world's leading satellite fleets in providing
telecommunications and broadcasting services throughout the Americas. Telesat
is a wholly owned subsidiary of BCE Inc., one of the world's leading
telecommunications companies.



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For further information: Dan Tisch or Josh Cobden, Environics
Communications, (416) 920-9000, ext. 260 & 275,
dtisch@pr.environics.ca/jcobden@pr.environics.ca; Marilynn Wright
Telesat, (613) 748-8855