Telstar 14R Update

May 25, 2011

Loral Space & Communications Inc. announced that following the launch of Telesat's Telstar 14R/Estrela do Sul 2 satellite on an International Launch Services (ILS) Proton rocket, one of the satellite's solar arrays did not fully deploy.

The south solar array has deployed successfully and is providing power to the spacecraft, which is stable and is otherwise operating as expected. Satellite manufacturer, Space Systems/Loral, is analyzing data from the satellite to determine what steps can be taken to maximize the satellite's lifespan and capability.

In the event that the north solar array can not be fully extended, and subject to successfully completing the remaining post-launch maneuvers, it is expected that the satellite will provide a level of service that is, at a minimum, equal to the satellite that it will replace. However, the satellite's capacity will be reduced from what was originally planned.