Media Release
7 October, 1999
LORAL COMPLETES AGREEMENT FOR LEASE OF SATELLITE TRANSPONDER CAPACITY FROM APT SATELLITE
Hong Kong, October 7, 1999 - Loral Space & Communications today announced that the company has formally completed its agreement, originally announced in August, to lease substantially all the transponder payload of the Apstar IIR satellite from APT Satellite Holdings Limited, Hong Kong, for approximately US$298 million. The satellite will provide transponder capacity across the Asia/Pacific region, joining Loral's existing worldwide constellation of high-powered satellites.
"The Apstar IIR offers our customers a powerful footprint and adds significant Asia/Pacific capacity to the
growing resources of the Loral Global Alliance," said Terry Hart, president, Loral Skynet. "We are delighted
to have been able to complete this agreement with APT which helps further the interests of both our companies."
Apstar IIR, which was manufactured by Space Systems/Loral, Palo Alto, Calif., and launched on October 17, 1997,
has an expected mission life of 15 years. Loral Skynet will have full use of 27 C-band and 16 Ku-band transponders
aboard Apstar IIR for the remaining life of the satellite. The transponders will be leased by Loral under an arrangement
with APT Satellite Company Limited, which is a wholly owned subsidiary of APT Satellite Holdings Limited.
The Apstar IIR satellite has 10 kilowatts of total on-board power and is based on SS/L's three-axis, body-stabilized FS-1300 bus, which has proven its worth during 350 years of cumulative on-orbit service, close to one-half of the total of 700 plus years amassed by all SS/L satellites to date. Located at 76.5(degree) East, Apstar IIR's footprint covers over 100 countries across Asia, Europe, Africa, and Australia, serving approximately 75% of the world's population.
Loral Skynet of Bedminster, N.J., a subsidiary of Loral Space & Communications, is a leading satellite communications
services provider that operates the Telstar and Orion satellite fleets. Loral Skynet's Telstar satellites provide
C-band and Ku-band coverage over the continental United States, Hawaii, Alaska, Puerto Rico and the U.S. Virgin
Islands, as well as trans-Atlantic coverage through the Orion 1 satellite. Customers lease transponder capacity
to distribute network television programming, to collect live video feeds for the reporting of news and events,
to provide Internet connectivity to Internet Service Providers and other users, and to offer direct-to-home and
pay-per-view programming, distance learning, educational, and other business television services. Loral Skynet
also provides technical consulting, as well as tracking, telemetry, and control of satellite fleets for a wide
variety of customers. For more information, visit Loral Skynet's web site at http://www.loralskynet.com.
Loral Skynet is part of the Loral Global Alliance, which offers its customers the advantages of a worldwide network
of satellite capacity currently on the North American Telstar fleet, the trans-Atlantic Orion 1 satellite, and
the three-satellite Satelites Mexicanos, S.A. de C.V. (Satmex) fleet, as well as on future Europe*Star satellites.
Each Alliance member provides global satellite solutions, while focusing on the local and inter-regional needs
within its coverage regions.
Loral Space & Communications is a high technology company that primarily concentrates on satellite manufacturing
and satellite-based services, including broadcast transponder leasing and value added services, domestic and international
corporate data networks, global wireless telephony, broadband data transmission and content services, Internet
services and international direct-to-home satellite services. For more information, visit Loral 's web site at
http://www.loral.com.
APT Satellite Holdings Limited ("APT"), a company listed on The Stock Exchange of Hong Kong Limited and
the New York Stock Exchange, Inc., provides transponder leasing services to leading international and PRC broadcasting
customers and telecommunications operators.
APT currently have three satellites in operation - the company's first satellite, Apstar I, was launched in July
1994, and Apstar IA, their second satellite, was launched in July 1996. The addition of Apstar IIR is expected
to generate significant rental income and to take advantage of the demand in the PRC for a wider range of television
programming, which will enable APT to hold a strong market position.
Most of APT's businesses come from Asia and particularly in the telecommunication and broadcasting sectors, both
of which are expected to experience a steady growth benefiting from the PRC's sound economic development in general.
By providing more added value satellite television uplink and downlink services and VSAT networks to its customers,
the Group will put itself in a stronger market position in terms of attracting new customers, as well as retaining
existing ones.
Mr. He Ke Rang, Vice Chairman and President of APT Satellite Holdings Limited, commented, "With international telecommunication traffic soaring and more TV programs being beamed around the world, satellites offer the ideal way of reaching millions of people. This is an excellent opportunity for Loral and APT to join hands in the Asian market."
To take advantage of the demand in the PRC for a wider range of television programming with superior picture and sound quality, APT plans to launch Apstar III and Apstar IV, which will be equipped with high power Ku-Band transponders, capable of providing direct broadcast satellite (DBS) services to viewers throughout the PRC and southeast Asia, and Apstar V, a high power satellite will replace Apstar I. For more information, visit APT Satellite Holdings Limited web site at http://www.apstar.com
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