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

To: RMiethe who wrote (6021)	5/5/1999 12:12:00 PM
From: straight life	Respond to of 10852

Boeing Delta III Rocket Fails to Place Orion 3 Satellite in Proper Orbit NEW YORK--(BUSINESS WIRE)--May 5, 1999--Loral Space & Communications Ltd. (NYSE: LOR - news) announced today that its Orion 3 broadcast video and data communications satellite was placed into a lower-than-expected orbit after its launch last night on a Boeing Delta III rocket from Cape Canaveral Air Station, Florida. Data from the satellite is still being received and analyzed to determine the cause of the failure and what further steps, if any, can be taken. According to Boeing, the Delta III's second stage apparently failed to complete its second planned burn. As a result, the Orion 3, which was manufactured by Hughes Space & Communications of El Segundo, Calif., achieved an orbit well below the planned final altitude. ''We are very disappointed with this outcome,'' said Terry Hart, president of Loral Skynet which manages the Telstar and Orion fleets. ''Loral, Hughes and Boeing will conduct an investigation to determine the specific reasons for the failure. Until then, we cannot speculate on the precise cause. Despite advances in aerospace technology over the years, launches remain a complex undertaking, and risks are an inherent part of that complexity.'' The satellite and launch were fully insured for $265 million. DACOM, a Korean communications company which had leased eight transponders on Orion 3 for a total of $89 million, had already made some pre-payments in the amount of $35.5 million. Under Loral's agreement with DACOM, this amount is subject to refund in the event that Orion 3 fails to commence commercial operation by June 30, 1999. 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.