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Hughes Signs Pre-Launch Contract for Capacity on Telesat’s Telstar 14R Satellite

Telstar 14R/Estrela do Sul 2 is scheduled to launch from Baikonur May 21, 2011 on an ILS Proton Rocket

OTTAWA, CANADA, May 3, 2011 – Telesat, a leading global fixed satellite services operator, announced today that Hughes do Brasil, Hughes Network Systems’ Brazilian operating company, has signed a long term contract for capacity on Telesat’s Telstar 14 satellite to serve Brazil that will transition to Telstar 14R when the new satellite is operational. Hughes Network Systems, LLC (Hughes), parent company of Hughes do Brasil, is the global leader in broadband satellite solutions and services.

Telstar 14 is a Ku-band spacecraft with a strong customer base operating from a highly desirable orbital location at 63 degrees West Longitude that provides service throughout the Americas and Atlantic Ocean Region. Its replacement, Telstar 14R/Estrela do Sul 2, is scheduled to launch May 21, 2011 (May 20th in the Americas). Telstar 14R is a state-of-the-art satellite that will offer customers important advantages relative to Telstar 14, including significant additional capacity, improved geographic coverage and higher power.

“Hughes leads the world in broadband VSAT networks and their long term commitment to Telstar 14 and its replacement is a great endorsement of the coverage and capabilities of these satellites,” said Nigel Gibson, Vice President, International Sales for Telesat. “Latin America is a highly attractive market for satellite communications and this is especially true in Brazil with its strong economic growth and vast regions that lack reliable connectivity. We look forward to working with Hughes in meeting the growing demand for satellite broadband networks across Brazil.”

“Hughes has been active in the Brazilian market for many years and has seen the demand for satellite-based services increase dramatically since 2005,” said Delio Morais, President, Hughes do Brasil. “This agreement with Telesat has been driven by the superior performance of Estrela do Sul 2 and demonstrates our long-term commitment to meeting Brazil’s booming demand for satellite services.”

About Telstar 14R

Telstar 14R will have five coverage beams: Brazil, the Continental United States (including the Gulf of Mexico and Northern Caribbean), the Southern Cone of South America, the Andean region (including Central America and Southern Caribbean), and the North and Mid-Atlantic Ocean. The satellite’s Atlantic beam will expand on the coverage of the Atlantic Ocean Region capacity of both Telstar 14 and Telstar 11N, and secure Telesat’s position as a leader in mobile broadband for maritime and aeronautical customers operating in the Atlantic.     

SS/L is the prime contractor for Telstar 14R, designing and building the satellite and supplying its payload. An important advantage of the satellite’s design is that Telesat will have the capability to switch amplifiers to different regions resulting in flexibility to match satellite capacity to market need. Telstar 14R will launch on an ILS Proton Breeze M rocket built by Russia’s Khrunichev State Research and Production Space Center.

About Telesat (www.telesat.com)                                                                    Telesat is a leading global fixed satellite services operator providing reliable and secure satellite-delivered communications solutions worldwide to broadcast, telecom, corporate and government customers. The company has a state-of-the-art fleet of 12 satellites with three more under construction including the Canadian Ka-band payload on ViaSat-1, is preparing to launch Telstar 14R, and manages the operations of additional satellites for third parties. Telesat is headquartered in Ottawa, Canada, with offices and facilities around the world. Privately held, Telesat’s principal shareholders are Canada’s Public Sector Pension Investment Board and Loral Space & Communications Inc. (NASDAQ: LORL).

About Hughes Network Systems

Hughes Network Systems, LLC (HUGHES) is the world’s leading provider of satellite broadband for home and office, delivering innovative network technologies, managed services, and solutions for enterprises and governments globally. HughesNet® is the #1 high-speed satellite Internet service in the marketplace, with offerings to suit every budget. To date, Hughes has shipped more than 2.5 million systems to customers in over 100 countries, representing over 50 percent market share. Its products employ global standards approved by the TIA, ETSI, and ITU organizations, including IPoS/DVB-S2, RSM-A, and GMR-1.

Headquartered outside Washington, D.C., in Germantown, Maryland, USA, Hughes operates sales and support offices worldwide, and is a wholly owned subsidiary of Hughes Communications, Inc. (NASDAQ: HUGH). For more information, please visit www.hughes.com.

Forward-Looking Statements Safe Harbour

This news release contains statements that are not based on historical fact and are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  When used in this news release, the words “scheduled for”, “anticipated”, “planned”, “will”, “believe”, or “expected” or other variations of these words or other similar expressions are intended to identify forward-looking statements and information.  Actual results may differ materially from the expectations expressed or implied in the forward-looking statements as a result of known and unknown risks and uncertainties.  Detailed information about some of the known risks and uncertainties is included in the “Risk Factors” section of Telesat Canada’s Annual Report on Form 20-F for the fiscal year ended December 31, 2010 filed with the United States Securities and Exchange Commission (SEC), which  can be obtained on the SEC’s website at http://www.sec.gov.  Known risks and uncertainties include but are not limited to: risks associated with operating satellites and providing satellite services, including satellite construction or launch delays, launch failures, in-orbit failures or impaired satellite performance, volatility in exchange rates and risks associated with domestic and foreign government regulation.  The foregoing list of important factors is not exhaustive.  The information contained in this news release reflects Telesat’s beliefs, assumptions, intentions, plans and expectations as of the date of this news release.  Except as required by law, Telesat disclaims any obligation or undertaking to update or revise the information herein. 

For further information:                                                                               

Gerry Nagler, Telesat, +1 908 698-4907 (gnagler@telesat.com)

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