Telesat Canada Announces Completion of Tender Offer for Its Outstanding 11.0% Senior Notes

May 29, 2012

Telesat Canada announced today the completion of its tender offer (the "Tender Offer") to purchase any and all of its outstanding 11.0% Senior Notes due 2015 (the "Senior Notes") issued under an indenture dated as of June 30, 2008 (the “Senior Indenture”).

The Tender Offer expired at midnight, New York City time, on (and at the end of) May 25, 2012 (the "Expiration Date"). No Senior Notes were validly tendered after the expiration of the consent payment deadline on May 11, 2012 at 5 p.m., New York City time (the "Consent Date") and before the Expiration Date. In total, including those Senior Notes validly tendered and not withdrawn prior to the Consent Date, Telesat received tenders from holders of $238.7 million aggregate principal amount, or approximately 34.5%, of its Senior Notes prior to the Expiration Date.

As previously announced, Telesat intends to redeem the Senior Notes that remain outstanding after completion of the Tender Offer in accordance with the terms of the Senior Indenture. On May 14, 2012, Telesat provided notice to the trustee under the Senior Indenture of such redemption and has irrevocably deposited cash with the trustee in respect of the Senior Notes in an amount sufficient to redeem the outstanding Senior Notes. The notice of redemption specifies a redemption date of June 14, 2012.