Press Releases

TO BE LAUNCHED SECOND HALF 2012

OTTAWA, CANADA, October 13, 2010 – Telesat, the world’s fourth largest fixed satellite services operator, announced today that Paradigm Services, a part of Astrium Services’ Telecoms Division, has entered into a 15 year contract for the full X-band payload of three transponders on Telesat’s Anik G1 satellite.

Anik G1 is a multipurpose satellite that will operate in geostationary orbit at 107.3 West following its launch scheduled for the second half of 2012. In addition to its X-band payload, Anik G1 will have 16 extended Ku-band transponders over Canada that are contracted for the life of the satellite to Shaw Direct, a leading provider of direct-to-home satellite television services in Canada, that will enable Shaw Direct to significantly expand video content and programming for their subscribers. Anik G1 also will have capacity over South America that will replace the Ku-band capacity on Telesat’s existing Anik F1 satellite and double F1’s South American C-band transponders. The X-band payload is for the exclusive use of Canada and its NATO allies.

Demand for X-band services from civil and military agencies around the world is growing as governments continue to increase their use of commercial satellites. Anik G1 will provide Paradigm Services with X-band communications over Canada, the Americas and part of the Pacific Ocean including Hawaii, the first commercial satellite with substantial X-band coverage of the Pacific. Through Paradigm Services, Astrium Services is a world leader in commercial military satellite communications providing state-of-the-art services to the Canadian Department of National Defense, the British Ministry of Defence, and other countries through a combination of its own satellites and specialized capacity leases.

“We are very pleased to have completed this agreement with Astrium’s Paradigm Services for the X-band capacity on Anik G1 nearly two years ahead of the satellite’s scheduled launch,” said Dan Goldberg, President and CEO of Telesat. “Our decision to incorporate a unique X-band payload on Anik G1, and Paradigm’s decision to lease the full payload for the satellite’s lifetime, represent the type of innovative thinking about new market opportunities that has driven the success of both companies. It is gratifying to know that the capabilities of Anik G1 will provide fixed and mobile services to Canada’s DND and other allied civil and military agencies.”

About Anik G1
Space Systems/Loral (SS/L) is the prime contractor for Telesat’s newest satellite, designing and building Anik G1 and supplying its payload that will consist of 16 transponders in extended Ku-band over Canada, 24 C-band and 12 Ku-band transponders over South America, and an X-band payload of three transponders over the Americas and the Pacific Ocean. Anik G1 will operate from 107.3 degrees West and utilize the proven SS/L1300 platform. It will have a 15 year mission life and launch on an International Launch Services Proton Breeze M rocket built by Russia’s Khrunichev State Research and Production Space Center.

About Telesat (www.telesat.com)
Headquartered in Ottawa, Canada, with offices and facilities around the world, Telesat is the fourth largest fixed satellite services operator. The company provides reliable and secure satellite-delivered communications solutions to broadcast, telecom, corporate and government customers. Telesat has a global state-of-the-art fleet of 12 satellites with three more under construction, and manages the operations of 13 additional satellites for third parties. Telesat is privately held. Its principal shareholders are Canada’s Public Sector Pension Investment Board and Loral Space & Communications Inc. (NASDAQ: LORL).

About Paradigm Services by Astrium
Part of Astrium Services’ Telecoms division, Paradigm is the prime contractor for the £4.0Bn ($6.15Bn) Private Finance Initiative (PFI) Skynet 5 contract with the UK Ministry of Defence (MoD) for the provision of military satellite communications services to 2022. In February 2010, Paradigm, backed by Astrium, concluded the agreement to provide further capability to the UK MoD, resulting in the addition of the Skynet-5D satellite to the constellation. The Anik-G1 capacity will enter service around the same time as Skynet-5D, hence further cementing Astrium’s place as the world’s leading commercial provider of secure milsatcom services.

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”, “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, 2009 filed with the United States Securities and Exchange Commission (SEC), as well as Telesat Canada’s other filings with the SEC. These filings 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. 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)