December 21, 1998 13:43
Alcatel and Loral Space & Communications Finalize EuropeStar Joint Venture
PARIS--(BUSINESS WIRE)--Dec. 21, 1998--
Business Operations to Begin in 1999 from London
Alcatel (NYSE:ALA) and Loral Space & Communications (NYSE:LOR) announced today that they have completed negotiations for the formation of EuropeStar Limited, a new satellite-services company.
EuropeStar will provide a sophisticated range of video broadcast and telecommunications services throughout five growth markets: Europe, the Middle East, South Africa, India and Southeast Asia.
EuropeStar will be a member of the Loral Global Alliance, a network comprising the satellite capacity of Loral Skynet, including the Telstar and Orion satellites and SatMex. As a member of the alliance, EuropeStar will be capable immediately of providing global satellite solutions, while focusing on the local and inter-regional needs within its coverage regions.
"EuropeStar is the strategic European-based component of the Alliance," said Benoit Tellier, vice president, Alcatel Space activities. "Alcatel is committed, through EuropeStar and other Alcatel companies, to expand its presence in satellite-based services. This partnership with Loral is central to that strategic objective."
Terry J. Hart, president of Loral Skynet, added, "Loral has taken an important strategic step by collaborating with Alcatel to create and operate EuropeStar and to integrate it into the Loral Global Alliance. EuropeStar is a template for future such ventures, and creates a unique and valuable tool to meet global customer needs through locally run satellite operators."
Alcatel and Loral signed shareholder agreements and established contracts governing the construction and deployment of the initial two-satellite system, co-located at 45 degrees E.L., as well as specific operational elements. Beginning in the first quarter of 1999, EuropeStar Limited will base its operations in London, with additional facilities in Germany and France.
EuropeStar Limited is owned by Alcatel, as majority shareholder, and Loral Space & Communications, with interest held by the Dr. Schulte Hillen Group of Germany. The Dr. Schulte Hillen Group initiated the project and filed for EuropeStar's three orbital positions (43 degrees, 45 degrees and 47.5 degrees East) with German authorities in 1991 through EuropeStar GmbH.
As prime contractor for the satellite system, Alcatel will develop EuropeStar's space and mission segments and will provide the telecommunications payload. Space Systems/Loral, a wholly owned subsidiary of Loral Space & Communications, will supply the integrated bus under subcontract to Alcatel. Satellite telemetry, tracking and control operations will be directed from Alcatel's Toulouse, France, center, with support from Loral Skynet's control facilities in Hawley, Pa. The launch of the EuropeStar 1 satellite is scheduled for mid-2000. A second satellite, EuropeStar 2, is expected to be launched in 2002 and will be co-located with EuropeStar 1 at 45 degrees East longitude.
The EuropeStar system's technical design focuses on high-power transmission capacity and regional interconnectivity. EuropeStar will be the first satellite system to deliver Ku-band connections with direct-to-home (DTH) high power and quality between Europe and Southeast Asia due to its 45 degrees East longitude orbital position. EuropeStar will also be the first to interconnect all five regions within its footprint, delivering the same high power for small receiver dish applications, all from a single satellite system. EuropeStar will enable broadcasters, network operators and service providers to offer the full range of television, data and telecommunications services, including video broadcast, DTH, Internet access, high-speed data exchange and rural telephony.
A world leader in telecommunications systems and equipment, as well as related cables and components activities, Alcatel operates in over 130 countries. Alcatel provides complete solutions and services to operators, service providers, enterprises and consumers, ranging from backbone networks to user terminals. For more information, visit Alcatel on the Internet: alcatel.com. Alcatel, a world leader in satellites, designs, develops, and manufactures all types of satellites, including those for communications, navigation, Earth observation, and scientific applications. The Company forecasts a 1998 turnover for space activities of 10 billion French francs.
Loral Space & Communications is a high technology company that primarily concentrates on satellite manufacturing and satellite-based services, including broadcast transponder leasing and value-added services, domestic and international corporate data networks, global wireless telephony, broadband data transmission and content services, Internet services and international direct-to-home satellite services. For more information, visit Loral's Web site at loral.com.
CONTACT: Loral Space & Communications
Jeanette Clonan, 212/338-5658
or
Alcatel
Press Relations
Jean-Christophe Huertas (HQ), 33 (0) 1/40-76-11-79
e-mail: jean-christophe.huertas@alcatel.fr
or
Alcatel
Investor Relations
Claire Pedini (HQ), 33 (0) 1/40-76-13-93
e-mail: claire.pedini@alcatel.fr
or
Alcatel
Space Activities
Nancy Lang, 33 (0) 1/46-52-64-68
e-mail: nancy.lang@space.alcatel.fr
or
Charlotte Laurent-Ottomane (HQ), 33 (0) 1/40-76-13-30
e-mail: ottomane@alcatel.fr
or
U.S.
Michael Haase, 972/519-68-55
or
EuropeStar GmbH
Beatrix von Wietersheim, 49/221-597-00-13
e-mail: vw@odars.de
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