Press Releases

Telesat reports second quarter results

BCE-owned satellite operator posts increases in both revenue and net earnings

OTTAWA, ON, August 1, 2007 - Telesat Canada, a wholly owned subsidiary of BCE Inc., announced today its unaudited financial results for the second quarter ending June 30, 2007. The company, which owns and operates satellites serving the Americas and provides a wide range of consulting services, posted increases in both revenue and profitability.

Telesat’s second quarter operating revenue of $161.4 million represented a 35% increase from $119.6 million in the same period of 2006. The company posted net earnings applicable to common shares of $41.6 million, 3% lower than the $43.0 million in the second quarter of 2006 as a result of higher income tax expense. Cash flows from operating activities were $59.9 million for the quarter compared to $39.0 million for the same period in 2006, an increase of $20.9 million or 54%. The increase is largely due to an increase in revenues, proceeds from the sales-type lease and to non-recurring 2006 cash payments for taxes and interest.

Highlights for the second quarter included:

Anik F3 launch: On April 9, the Anik F3 satellite was successfully launched. Commercial services on the Ku and C-band payloads were initiated on May 1, 2007.
Telesat signs Nimiq 5 launch contract: On April 26, Telesat signed the Nimiq 5 launch agreement with International Launch Services (ILS). This will be the sixth Telesat satellite launched by ILS on a Proton rocket from the Baikonur Cosmodrome in Kazakhstan.
Telesat to operate RADARSAT-2: Telesat reached an agreement with MacDonald, Dettwiler and Associates Ltd. to provide pre-operational and satellite operation services for the RADARSAT-2 satellite. RADARSAT-2 will be the first Low Earth Orbit (LEO) satellite and the first non-communications satellite placed under Telesat’s supervision.
Orbital spectrum licences award: On June 13, the Minister of Industry announced that Telesat had been selected to receive five new spectrum licences.

About Telesat

Headquartered in Ottawa, Telesat Canada is one of the world’s pioneers in satellite communications and systems management and the leading satellite service provider in Canada. Created in 1969, the company made history three years later with the launch of Anik A1, the world's first domestic communications satellite in geostationary orbit operated by a commercial company.

Telesat operates a fleet of satellites that provide broadcast distribution and telecommunications services, and is a highly respected consultant and partner in satellite ventures around the world. Telesat has offices throughout Canada, in the United States and in Brazil. On December 16, 2006, Telesat’s parent company, BCE Inc., announced the sale of the satellite operator for $3.25 billion, net of debt, to a new acquisition company formed by Canada’s Public Sector Pension Investment Board (PSP Investments) and Loral Space & Communications Inc. (Loral). As part of the agreement between PSP Investments and Loral, Loral will contribute its fixed satellite services and network services assets to the new acquisition company. Applications for the change in ownership of Telesat have been filed with the appropriate regulatory authorities.

For more information:

Ted Ignacy
Telesat
(613) 748-0123

Dan Tisch or Karen Passmore (media only)
Argyle Communications
(416) 968-7311 Ext. 223 or 228
dtisch@argylecommunications.com
kpassmore@argylecommunications.com