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Technology Stocks : Loral Space & Communications

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To: Jeff Vayda who wrote (10621)10/2/2003 7:06:16 AM
From: Jeff Vayda  Read Replies (2) of 10852
 
Loral to build two high-power
satellites for DIRECTV
SPACE SYSTEMS/LORAL NEWS RELEASE
Posted: October 1, 2003(http://www.spaceflightnow.com/news/n0310/01directv/)

Space Systems/Loral (SS/L), a subsidiary of Loral Space &
Communications, announced today that DIRECTV, Inc., El
Segundo, Calif., has issued SS/L authorizations to proceed (ATPs)
with the design and construction of two satellites: DIRECTV 8 and
DIRECTV 9S. Aggregate revenue for the construction of the two
satellites will be in excess of $220 million.

"DIRECTV's award represents Loral's second and third orders for
commercial satellite construction this year and a total of 14 for the
industry - a positive indicator of a resurgence in satellite
manufacturing sales," said Bernard L. Schwartz, chairman and chief
executive officer of Loral Space & Communications. "For Loral, the
orders are a significant step forward in the execution of our
business plan under the reorganization process. As satellite
operators resume their normal procurement patterns, we believe
SS/L will benefit as the preferred provider of the most advanced
and most reliable commercial communications satellites available
anywhere. We are most appreciative of DIRECTV's confidence in
SS/L's ability to provide state-of-the-art satellites for its mission
critical applications."

The ATPs have been submitted for approval by the Bankruptcy
Court.

DIRECTV 8, to be delivered in the late first quarter of 2005, will
provide national coverage from the 101 degrees West longitude
orbital slot, DIRECTV's primary orbital slot. The satellite will also
be able to operate from DIRECTV's orbital slots at 110 and 119
degrees West longitude. The satellite will carry 16 high-power
transponders for high-quality national digital video services.

DIRECTV 9S, scheduled for delivery in the late second quarter of
2005, is designed to operate from orbital locations at 101 degrees
West longitude or 119 degrees West longitude. As a back-up for
DIRECTV's 4S and 7S satellites, it will be capable of providing up
to 54 transponders for high-quality local and national digital video
service broadcast into 27 beams. In an alternate configuration, the
satellite will be capable of providing up to 44 transponders broadcast
into 30 beams.

"We selected SS/L to design and manufacture these two advanced
satellites because it was best able to meet our schedule and
technical requirements," said Jim Butterworth, senior vice president,
Communications Systems, DIRECTV, Inc. "These spacecraft will
provide DIRECTV with additional capacity and back-up capabilities
as we continue to build out our network to provide additional
services to our customers that will include more local channel
markets and high-definition programming. We're confident in SS/L's
ability to deliver in accordance with our agreed upon specifications."

With the completion of DIRECTV 8 and DIRECTV 9S, Loral will
have manufactured five - more than half - of the satellites in
DIRECTV's fleet. SS/L is currently building DIRECTV 7S, a
high-power, spot-beam satellite scheduled for launch in mid to late
first quarter of 2004.

DIRECTV 8 and DIRECTV 9S are based on SS/L's space-proven
1300 satellite platform, which has an excellent record of reliable
operation. The geostationary 1300 has a designed service life of 15
years and maintains station-keeping and orbital stability by using
bipropellant propulsion and momentum management systems. A
system of high efficiency solar arrays and lightweight batteries
provides uninterrupted electrical power. In all, SS/L satellites have
amassed more than 1000 years of on-orbit service.

DIRECTV is the nation's leading digital multichannel television
service provider with more than 11.8 million customers. DIRECTV
and the Cyclone Design logo are trademarks of DIRECTV, Inc., a
unit of Hughes Electronics Corp. HUGHES is a world-leading
provider of digital television entertainment, broadband services,
satellite-based private business net-works, and global video and data
broadcasting. The earnings of HUGHES, a unit of General Motors
Corporation, are used to calculate the earnings per share attributable
to the General Motors Class H common stock.

Space Systems/Loral is a premier designer, manufacturer, and
integrator of powerful satel-lites and satellite systems. SS/L also
provides a range of related services that include mission control
operations and procurement of launch services. Based in Palo Alto,
Calif., the company has an international base of commercial and
governmental customers whose applications include broadband
digital communications, direct-to-home broadcast, defense
communications, environmental monitoring, and air traffic control.
SS/L is ISO 9001:2000 certified.

Loral Space & Communications is a satellite communications
company. Through its Skynet subsidiary, it owns and operates a
global fleet of telecommunications satellites used by television and
cable networks to broadcast video entertainment programming, and
by communication service providers, resellers, corporate and
government customers for broadband data transmission, Internet
services and other value-added communications services. Loral also
is a world-class leader in the design and manufacture of satellites
and satellite systems through its Space Systems/Loral subsidiary.
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