Telesat Reports Results for the First Quarter Ended March 31, 2012

April 27, 2012

Telesat Holdings Inc. announced its financial results for the three month period ended March 31, 2012. All amounts are in Canadian dollars and are reported under International Financial Reporting Standards (“IFRS”) unless otherwise noted.

For the quarter ended March 31, 2012, consolidated revenue was $196 million, a decrease of approximately 3% ($7 million) compared to the same period in 2011. The decrease in revenue was principally the result of a previously disclosed contractual rate reduction on one of Telesat’s Direct-to-Home satellites, partially offset by growth from Telesat’s international satellite fleet and the additional revenue received from the Canadian payload on ViaSat-1. Adjusted EBITDA1 was $153 million, a decrease of 3% ($4 million) over the same period in 2011. The Adjusted EBITDA margin1 for the first quarter was 78% compared to 77% for the same period in 2011.

Telesat’s net income for the quarter was $99 million compared to a net income of $115 million for the quarter ended March 31, 2011. The change in net income is due to slightly lower revenues, higher operating expenses and the incurrence of a non-cash loss relating to the write-off of deferred financing fees associated with Telesat’s previous credit facilities. This variation in operating expenses was partially offset by a net positive variation in non-cash items such as gains/losses on foreign exchange and changes in fair value of financial instruments. Excluding expenses related to amounts paid or payable in connection with the refinancing of Telesat’s credit facilities, the special cash distribution to shareholders and last year’s review of strategic alternatives, operating expenses would have declined by $2 million (5%) year over year.

“I am pleased with our financial and operating performance in the first quarter of 2012,” commented Dan Goldberg, Telesat’s President and CEO. “Notwithstanding the significant contracted reduction in revenue from one of our Direct-to-Home satellites, revenue and Adjusted EBITDA declined only modestly. In addition, we improved our Adjusted EBITDA margin and maintained our industry-leading contractual backlog. We also refinanced our senior secured credit facilities in the quarter and, in the process, extended our maturities at favorable interest rates. In connection with the refinancing we made a significant cash payment to shareholders, allowing them to receive a portion of the substantial value we’ve created in Telesat over the past few years. Lastly, we made meaningful progress on the construction of Nimiq 6 and Anik G1, satellites we expect to launch later this year. In light of the significant investments we are making in our fleet and our substantial contractual backlog, we are well positioned to grow our business this year and beyond.”

Business Highlights
• At March 31, 2012:
o Telesat had contracted backlog for future services of approximately $5.5 billion.
o Fleet utilization was 91% for Telesat’s North American fleet and 80% for Telesat’s
international fleet.

• On March 28, 2012, Telesat Canada entered into a new credit agreement (the ‘‘Credit
Agreement’’) with a syndicate of banks which provides for the extension of credit under the
following senior credit facilities in the principal amount of up to approximately U.S. $2,550 million (together, the ‘‘Senior Credit Facilities’’): (i) a revolving credit facility in the amount of up to CAD/USD $140 million, available in either Canadian or U.S. dollars, maturing on March 28, 2017;

(ii) a Term Loan A facility denominated in Canadian dollars, in the amount of $500 million,
maturing on March 28, 2017; (iii) a Term Loan B facility denominated in Canadian dollars, in the amount of $175 million, maturing on March 28, 2019; and (iv) a Term Loan B facility denominated in U.S. dollars, in the amount of USD $1,725 million, maturing on March 28, 2019. Simultaneously with entering into the Credit Agreement, Telesat Canada terminated and paid all outstanding amounts under its previously existing credit facilities, which were evidenced by a credit agreement dated as of October 31, 2007.

• On March 28, 2012, Telesat redeemed all of its outstanding senior preferred shares, previously held by an affiliate of the Public Sector Pension Investment Board (“PSP Investments”), for approximately $146 million in cash, equal to the principal and accrued dividends on the senior preferred shares. Following the redemption of the senior preferred shares, an affiliate of PSP

Investments provided a loan in the amount of approximately $146 million to Telesat Canada, in the form of a subordinated promissory note.

• In connection with the closing of the Credit Agreement, Telesat declared a special cash
distribution to its shareholders, as a reduction of stated capital, in the amount of approximately $656 million. On March 28, 2012, Telesat paid its shareholders approximately $586 million relating to the special distribution, which was funded by the proceeds from the Senior Credit Facilities and excess cash from operations. The approximately $70 million special distribution remaining is expected to be paid during the remainder of 2012. In connection with the special distribution made to Telesat’s shareholders, the Board of Directors also authorized the payment of approximately $49 million in special payments to executives and certain employees of Telesat.

Approximately $37.2 million was recognized in respect of special payments during the quarter.

• Telesat’s Nimiq 6 satellite has arrived at the launch site in Baikonur, Kazakhstan and is being processed for launch, which is expected to take place on May 17, 2012. Telesat also made substantial progress on the construction of the Anik G1 satellite which is expected to be launched in the fourth quarter of 2012.