Nimiq 2 means major expansion of capacity for direct-to-home
    satellite TV.

BAIKONUR COSMODROME, KAZAKHSTAN,Dec. 30 2002 --Telesat announced today
the successful launch of Nimiq 2 - a new satellite that will expand the
frontiers of direct-to-home (DTH) satellite television across Canada. Nimiq 2
will carry hundreds of channels and expand services such as high-definition
television, pay-per-view programming, specialty channels and interactive
television. Telesat's customer on Nimiq 2 will be Bell ExpressVu, which will
use the satellite to expand and enhance its DTH services.
    "Telesat's Nimiq 2 means Canadians will have more choice in information
and entertainment, and exciting new services from coast to coast," said Larry
Boisvert, Telesat's president and CEO. "More than 1.3 million Canadians
already subscribe to direct-to-home satellite television using Nimiq 1, and
with Nimiq 2 in service that number is sure to keep growing."
    Manufactured by Lockheed Martin Commercial Space Systems, Nimiq 2 was
launched on a Proton rocket from Baikonur Cosmodrome at 4:17 a.m. local time.
International Launch Services (ILS) provided mission management for the launch
of Nimiq 2, which is Telesat's fourteenth successful satellite launch.
    Telesat will take possession of Nimiq 2 by February 2003 and will turn
the capacity over to Bell ExpressVu by March 1. At that time, Nimiq 1,
Canada's first direct broadcast satellite, will become the back-up for Nimiq
2, making Canada's satellite infrastructure more secure than ever before.
    DTH is one of the fastest-growing consumer products in history. Telesat
has been instrumental in creating and expanding Canadian capacity for these
services.

    About Telesat (www.telesat.ca)
    Telesat is a world leader in satellite operations and systems management.
The 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 broadcast distribution services throughout the
Americas. Telesat is a wholly-owned subsidiary of BCE Inc., one of the world's
premier communications companies.

    /NOTE TO PHOTO EDITORS: A photo accompanying this release is available
    on the Canadian Press Photo Network/





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For further information: Stuart MacMillan, Telesat Canada,
(613) 748-0123, s.macmillan@telesat.ca; Dan Tisch or Rajani Kamath
(media only), Argyle Rowland Communications, (416) 968-7311, ext. 223 or 241,
dtisch@argylerowland.com, rkamath@argylerowland.com