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Telstar 18 Providing Broadband Internet for NATO Troops in Afghanistan

IoStar International Expands Its Use of Telstar 18 Ku-band Capacity to Meet Growing Demand in Afghan Region

OTTAWA, CANADA, December 10, 2009 – Telesat, the world’s fourth largest fixed satellite services operator, announced today that IoStar International Limited of Hong Kong (IoStar) is now utilizing more than a full Ku-band transponder on Telesat’s Telstar 18 satellite to serve the communications needs of NATO troops in Afghanistan. IoStar is a leading provider of satellite broadband to commercial and government customers in Asia through its use of Ku band capacity.

“The demand for satellite communications services to Afghanistan is surging, but there are few options available, especially ones that provide competitive advantages to companies like ours,” said Tilak Sarkar of IoStar. “Telstar 18 is an effective solution for Afghan coverage that has proven itself under the most demanding conditions. We look forward to working with Telesat to serve the growing communications needs of NATO troops in the Afghan region.”

“Afghanistan is within the western edge of Telstar 18’s coverage resulting in a look angle that enables Telesat to offer customers a very attractive service solution,” said Nigel Gibson, Vice President, International Sales for Telesat. “We are proud to support IoStar in delivering broadband connectivity with the reliability and throughput required by NATO forces in Afghanistan.”

About Telstar 18

Located at 138o East, Telesat’s Telstar 18 is a hybrid satellite operating in the standard and extended C-band frequency ranges and in standard Ku-band. The satellite’s Ku-band footprint reaches Afghanistan with full coverage of India, China, the Koreas and Southeast Asia supporting broadband and video distribution services. Its wide-beam C-band coverage reaches from Hawaii across the Asian continent to India and neighboring countries including Afghanistan and provides direct access to leading Asian media centers for video distribution and contribution.

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 one under construction and another planned to start construction early 2010, 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.

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”, 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 final prospectus filed with the United States Securities and Exchange Commission (SEC) on June 29, 2009 as well as Telesat Canada’s other filings with the SEC which can be obtained on the SEC’s website at http://www.sec.gov. Readers are specifically referred to those documents. 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 and risks associated with domestic and foreign government regulation. The foregoing list of important factors is not exclusive. 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: Vanessa Brûlé, Telesat, +1 613 748-8700 ext. 2407 (vbrule@telesat.com)

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