SOURCE: Space Systems/Loral

Space Systems/Loral

October 31, 2012 12:00 ET

Space Systems/Loral Selected by U.S. Air Force to Develop Next Generation Protected Military Satellite Communications

PALO ALTO, CA--(Marketwire - Oct 31, 2012) - Space Systems/Loral (SS/L) (NASDAQ: LORL), the world's leading provider of commercial satellites, today announced that it was selected by the U.S. Air Force Space and Missile Systems Center (SMC) to develop affordable design concepts for next generation Protected Military Satellite Communications (MILSATCOM).

SS/L has a long history of successfully delivering timely and affordable high-performance commercial satellite systems. As a prime contractor leading several protected communications system and technology domain expert companies, SS/L is well-positioned to provide proven solutions with shorter schedules and lower, better controlled cost, to defend against growing and changing intentional jamming and cyber threats and to deliver advanced communications capability to the warfighter.

In today's cost-conscious environment, the objective of the SMC program is to develop practical new architectures and technologies that will protect increasingly contested and threatened high security communications. Space Systems/Loral will combine its expertise and existing technologies from commercial developments together with existing military technologies provided by a team of domain experts to assess options for both space and ground segment design.

"The protected MILSATCOM contract is an opportunity for SS/L to continue its efforts to serve the U.S. Government with cost-effective solutions based on commercial market innovation," said John Celli, president of SS/L. "Working with our industry partners, we will use domain expertise, proven military technology, and our supply chain efficiencies to quickly bring increased capability to the warfighter."

The SS/L business is based on addressing changing requirements in mobile communications, broadband, and high definition video broadcasting within the budget and schedule constraints of the commercial marketplace. For the SMC's Protected MILSATCOM program, SS/L will help remedy existing gaps in the space communications layer and demonstrate specific design concepts focused on improved life-cycle affordability that will meet the warfighter needs far into the future.

About Space Systems/Loral
Space Systems/Loral, a subsidiary of Loral Space & Communications (NASDAQ: LORL), has a long history of delivering reliable satellites and spacecraft systems for commercial and government customers around the world. As the world's leading provider of commercial satellites, the company works closely with satellite operators to provide spacecraft for a broad range of services including television and radio distribution, digital audio radio, broadband Internet, and mobile communications. Billions of people around the world depend on SS/L satellites every day. For more information, visit www.ssloral.com.

About Loral Space & Communications
Loral Space & Communications is a satellite communications company. Through its Space Systems/Loral subsidiary, the company is a world-class leader in the design and manufacture of satellites and satellite systems for commercial and government applications including direct-to-home television, broadband communications, wireless telephony, weather monitoring, and air traffic management. Loral also owns 64 percent of Telesat, one of the world's largest providers of satellite services. Telesat operates a fleet of telecommunications satellites used to broadcast video entertainment programming, distribute direct-to-home video and broadband data services, and other value-added communications services. On June 26, 2012, Loral announced that it had entered into a definitive agreement to sell Space Systems/Loral to MacDonald, Dettwiler and Associates Ltd. (TSX: MDA). The closing of the transaction is subject to customary closing conditions.

For more information, visit Loral's Web site at www.loral.com. LORL-G

This document contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. When used in this press release, the words "believes," "expects," "plans," "may," "will," "would," "could," "should," "anticipates," "estimates," "project," "intend" or "outlook" or other variations of these words or other similar expressions are intended to identify forward-looking statements and information. In addition, Loral Space & Communications Inc., Space Systems/Loral, Inc. or their representatives have made or may make forward-looking statements, orally or in writing, which may be included in, but are not limited to, various filings made from time to time with the Securities and Exchange Commission, and press releases or oral statements made with the approval of an authorized executive officer of the company. Actual results may differ materially from anticipated results as a result of certain risks and uncertainties which are described as "Risk Factors" and in the "Commitments and Contingencies" note to the financial statements in Loral's 2011 annual report on Form 10-K filed February 29, 2012. The reader is specifically referred to this document, as well as the company's other filings with the Securities and Exchange Commission. Risks and uncertainties include but are not limited to (1) risks associated with financial factors, including swings in the global financial markets, financial covenants in SS/L's credit agreement, increases in interest rates and access to capital; (2) risks associated with satellite manufacturing, including competition, cyclicality of SS/L's end-user markets, contractual risks, creditworthiness of customers, performance of suppliers and management of our factory and personnel; (3) regulatory risks, such as the effect of U.S. export control and economic sanction laws; (4) risks related to the proposed sale of SS/L, including the effect on the business of SS/L prior to the consummation of the sale and the ability to satisfy the contractual conditions to closing the sale; and (5) other risks, including litigation. The foregoing list of important factors is not exclusive. Furthermore, Loral and SS/L operate in an industry sector where securities values may be volatile and may be influenced by economic and other factors beyond the control of Loral and SS/L.