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Technology Stocks : Loral Space & Communications -- Ignore unavailable to you. Want to Upgrade?

To: Bernard Levy who wrote (2050)	2/25/1998 4:23:00 PM
From: Larry L	Read Replies (1) \| Respond to of 10852

ROCKVILLE, Md., Feb. 24 /PRNewswire/ -- Orion Network Systems, Inc. (Nasdaq: ONSI) today announced that consolidated revenues for the year-ended December 31, 1997, increased 74% over the same period in 1996 to $72.7 million. Orion's consolidated net loss for 1997 increased to $105.7 million versus a $27.2 million loss for 1996, due to increased interest expense primarily from the Company's $710 million January 1997 bond issue, the extraordinary loss on the extinguishment of debt and increased depreciation and amortization expense. Three-month consolidated revenues were $18.2 million in 1997, a 54% increase over the same period in 1996. Consolidated revenues from private communications network services increased over 123% to $36.8 million for the year-ended December 31,1997, up from $16.5 million for the comparable period in 1996. Consolidated revenues from video communications services and transponder capacity leasing increased 27% to $31.4 million for the year-ended December 31,1997, from $24.8 million for the same period in 1996. Orion's President and Chief Executive Officer W. Neil Bauer commented, "Orion has completed another successful year in the global expansion of it's data networking, satellite broadcasting and Internet service businesses. As we deploy new satellites, extending Orion's reach to Asia, Latin America, Russia and the Middle East, we will continue to implement our strategy of providing cost-effective, responsive data services to corporate customers who demand high quality, global communications solutions." On October 7, 1997, Loral Space and Communications Ltd. and Orion announced a definitive merger agreement in which Loral will acquire Orion in exchange for Loral common stock. The exchange ratio mechanics relating to the Loral acquisition of Orion are as follows: If the Loral common stock is trading (over a specified period prior to closing) between approximately $16.31 per share and $24.46 per share, each outstanding share of Orion stock will be converted into $17.50 worth of Loral common stock. If the price of Loral common stock is trading above approximately $24.46, Orion stockholders will receive 0.71553 Loral shares and will receive value in excess of $17.50 for each outstanding share of Orion stock. If the price is below approximately $16.31, Orion shareholders will receive 1.07329 Loral shares and the value received will decrease. A meeting of Orion's shareholders has been scheduled for March 20, 1998, to approve the merger with Loral. As of December 31, 1997, the Company reported a backlog of $269.5 million. Orion's operating performance indicators since its initial public offering and for the year-ended December 31, 1997 are as follows: (Amounts in thousands except site data) Sites In Services Service Backlog Revenue(A) 1995 Q3 124 $94,890 $5,740 1995 Q4 151 120,612 6,411 1996 Q1 196 134,861 7,493