Combination strengthens Ottawa-based company, the world's fourth-largest
    satellite operator

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