Loral to Build Third Satellite for CD Radio Program Valued at More
Than $350 Million; Takes Equity Position in CD Radio
PALO ALTO, CALIF. (Aug. 5) BUSINESS WIRE -Aug. 5, 1997--Space
Systems/Loral (SS/L), a wholly owned subsidiary of Loral Space &
Communications (NYSE:LOR), received an order from CD Radio Inc.
(NASDAQ:CDRD) to build a third digital audio radio service (DARS)
satellite for CD Radio's satellite-to-car radio broadcast system. Loral
is currently building two DARS satellites for CD Radio, and has an
option for a fourth satellite, bringing the total value of the program
to more than $350 million. The satellites will provide high-quality
digital radio broadcasts to automobiles in the continental United
States.
Separately, Loral announced that it is purchasing 1,905,488 shares of
CD Radio common stock at $13.12 per share. The $25 million investment
represents approximately 15 percent of the company's outstanding common
stock.
"This investment allows Loral to leverage an exciting technology into a
new business opportunity," said Bernard L. Schwartz, Loral chairman and
chief executive officer. "Loral's decision to convert a portion of our
negotiated vendor financing into an equity position illustrates our
confidence in CD Radio, and is consistent with our willingness to
support and participate with customers entering new markets with good
business plans."
The satellite will serve as a ground spare to CD Radio's two-satellite
constellation, scheduled for launch in 1999. The award brings the
total number of satellites based on SS/L's FS-1300, three-axis
stabilized spacecraft that have been built or ordered to 62, including
24 currently in production.
CD Radio, based in Washington, D.C., is the winning bidder for one of
two FCC national satellite radio broadcast licenses. The company is
developing a satellite-to-car 50-channel radio service for the
broadcast of music and other programming to motorists throughout the
United States.
Space Systems/Loral is a full-service provider of commercial
communications satellite systems and services, including launch and
insurance procurement and mission operations from its mission control
center in Palo Alto, Calif. SS/L currently has a total backlog of more
than 80 spacecraft. In addition to building DARS satellites for CD
Radio, the company is the prime contractor for the Globalstar(TM)
mobile communications system, the N-STAR, Mabuhay, APSTAR, Telstar,
PanAmSat, L-STAR, M2A, INTELSAT and CHINASAT communications satellites;
as well as the latest series of weather-watch satellites, GOES
(Geostationary Operational Environmental Satellite); and the Japanese
MTSAT, the next-generation Japanese air traffic control and
weather-watch satellite.
Loral Space & Communications Ltd., headquartered in New York,
concentrates on satellite manufacturing and satellite-based services.
In addition to its ownership of SS/L, Loral manages and holds a 38
percent equity interest in Globalstar(TM), scheduled for service
initiation in late 1998. Loral's Skynet subsidiary is a leading U.S.
satellite communications service provider and the owner/operator of the
Telstar satellite network. Loral is also developing CyberStar(TM), a
broadband high-speed data communications satellite services project
scheduled for service initiation in 1998.
--30--sm/ny*
CONTACT: Jeanette Clonan
(212) 697-1105
KEYWORD: NEW YORK CALIFORNIA INDUSTRY KEYWORD: TELECOMMUNICATIONS
COMPUTERS/ELECTRONICS COMED Today's News On The Net - Business Wire's
full file on the Internet
with Hyperlinks to your home page.
URL: businesswire.com |
