Telesat Achieves Strong Growth in Revenue and Adjusted EBITDA in First Quarter 2009

    OTTAWA, May 11 /CNW/ - Telesat Holdings Inc. (Telesat) today announced
its unaudited financial results for the three month period ended March 31,
2009. Unless otherwise stated herein, all amounts are in Canadian Dollars
    Consolidated revenues and Adjusted EBITDA for the three month period were
$204 million and $143 million, respectively. Revenues rose by approximately
25% ($41 million) and Adjusted EBITDA improved by 47% ($46 million) compared
to 2008 unaudited first quarter results. Revenues increased as a result of a
full quarter of Nimiq 4 revenues in the first quarter of 2009, higher US/
Canadian dollar exchange rates and higher utilization of the international
fleet. Adjusted for changes in foreign exchange rates, revenue and Adjusted
EBITDA increased by 14% and 34%, respectively. The Adjusted EBITDA margin was
70% for the three month period, compared to a margin of 60% for the same
period last year.
    As a result of non-cash losses arising from foreign exchange Telesat
reported a net loss for the three months ended March 31, 2009 of $39 million.
The non-cash foreign exchange loss for the three months, related to the
Company's US dollar denominated debt, was $101 million. Foreign exchange
losses were partially offset by non-cash gains on financial instruments. These
gains were primarily related to the Company's US dollar hedging program on a
portion of its long-term debt and capital expenditure commitments.
    At March 31, 2009, Telesat had contracted backlog for future services of
$5.3 billion.
    Dan Goldberg, Telesat's President and CEO, commented: "I am very pleased
with our performance for the first quarter. Consistent with our expectations,
we experienced significant growth in revenues, even more significant growth in
EBITDA and a meaningful expansion in our EBITDA margin when compared to the
same period last year. In addition, Telstar 11N was successfully launched and
brought into service and we are making steady progress in increasing its
utilization. Although there are a range of challenges in this difficult
economic environment, our industry-leading contractual backlog and focused
execution on both the revenue and cost side of our business keep us well
positioned as we move through the balance of the year."


    -   Telstar T11N was successfully launched on February 26, 2009, and
        entered commercial service on March 31, 2009.

    -   Nimiq 5 remains under construction and is anticipated to be launched
        late in 2009. Nimiq 5 is fully leased to Bell TV, which will use the
        new satellite to enhance and expand its industry-leading high
        definition television services across Canada. Bell TV has subleased
        half the capacity of Nimiq 5 to EchoStar Corporation and Dish Network
        for the provision of direct-to-home satellite services in the United

    -   As previously announced, Telesat is in discussions regarding the
        potential sale of its interests in certain of its international
        satellites and related assets and business. Any potential transaction
        is subject to further due diligence and other conditions and Telesat
        cannot at this time assess the probability of concluding any
        transaction under discussion or under what terms, including price,
        these assets may be sold.

    Telesat has posted its unaudited Consolidated Financial Statements for
the three month period ending March 31, 2009 on its website at
under the tab "Media Room" in the "Investor Relations" section.

    Adjusted EBITDA

    Telesat Holdings Inc. ("Telesat" or "Telesat's") EBITDA consists of
earnings before interest, taxes, and depreciation and amortization. Telesat's
Adjusted EBITDA is EBITDA before goodwill and other impairment charges, other
income, and amortization of stock based compensation, adjusted for sales type
lease revenues and expenses. Telesat presents Telesat's Adjusted EBITDA to
provide further information with respect to its operating performance.
Telesat's Adjusted EBITDA margin is defined as Telesat's Adjusted EBITDA
divided by total revenues. Telesat's Adjusted EBITDA is used as one criterion
for evaluating its performance relative to that of its peers. It is believed
that Telesat's Adjusted EBITDA is an operating performance measure, and not a
liquidity measure, that provides investors and analysts with a measure of
operating results unaffected by differences in capital structures, capital
investment cycles and ages of related assets among otherwise comparable
companies. However, Telesat's Adjusted EBITDA and Telesat's Adjusted EBITDA
margin are not measures of financial performance under Canadian GAAP or United
States GAAP, and may not be comparable to similarly titled measures of other
companies. You should not consider Telesat's Adjusted EBITDA or Telesat's
Adjusted EBITDA margin as an alternative to operating income or net loss or
operating or net income (loss) margin, determined in accordance with Canadian
GAAP or United States GAAP, as an indicator of Telesat's operating
performance, or as an alternative to cash flows from operating activities,
determined in accordance with Canadian GAAP or United States GAAP, as an
indicator of cash flows or as a measure of liquidity.

    Telesat Holdings Inc.
    Consolidated Statements of Loss

                                                               Three months

    (in millions of Canadian dollars)                         2009      2008
    Operating revenues
    Service revenues                                         198.8     155.2
    Equipment sales revenues                                   5.2       7.5
    Operating revenues                                       204.1     162.7

    Amortization                                              61.3      58.7
    Operations and administration                             58.2      59.5
    Cost of equipment sales                                    4.4       6.0
    Total operating expenses                                 123.9     124.2
    Earnings from operations                                  80.2      38.5
    Interest expense                                          71.1      65.3
    Other expense                                             43.9      90.9
    Loss before income taxes                                 (34.8)   (117.7)
    Income tax expense (recovery)                              4.3     (16.3)
    Net loss applicable to common shares                     (39.1)   (101.4)

    Telesat Holdings Inc.
    Quarter ended March 31, 2009 vs. quarter ended March 31, 2008
    (in millions of Canadan dollars)

                                                 Quarter   Quarter
                                                   Ended     Ended
                                                March 31  March 31
                                                    2009      2008  Variance
                                                --------- --------- ---------
    Service revenues                               198.8     155.2      43.6
    Equipment sales revenues                         5.2       7.5      (2.3)
                                                --------- --------- ---------
                                                   204.0     162.7      41.3
                                                --------- --------- ---------

    Operating and administration expense            58.2      59.5       1.3
    Cost of equipment sales                          4.4       6.0       1.6
    Stock-based compensation expense                (1.6)        -       1.6
                                                --------- --------- ---------
                                                    61.0      65.5       4.5
                                                --------- --------- ---------

    Adjusted EBITDA                                143.0      97.2      45.8
                                                --------- --------- ---------
                                                --------- --------- ---------

    EBITDA Margin                                    70%       60%

    Conference Call

    Telesat has scheduled a conference call to discuss its financial results
for the three month period ended March 31, 2009 for Monday, May 11, 2009 at
10:30 a.m. EDT. The call will be hosted by Dan Goldberg, President & Chief
Executive Officer, and Michel Cayouette, Chief Financial Officer of Telesat. A
presentation that will be addressed on the conference call has been posted to
the Company's website.

    Dial-in Instructions:

    The toll-free dial-in for the teleconference is +1-866-226-1793.
    International callers should dial +1-416-340-2218. The access code is
4006270. Please allow at least 15 minutes prior to the scheduled start time to
connect to the teleconference.

    Dial-in Audio Replay:

    A replay of the teleconference will be available beginning at 1:00 p.m.
EDT May 11, 2009, until 11:59 p.m. EDT on May 25, 2009. To access the replay,
please call +1-800-408-3053. International callers should dial
+1-416-695-5800. The access code is 5316307 followed by the number sign (No.).

    About Telesat (

    Headquartered in Ottawa, Canada, with offices and facilities around the
world, Telesat is the fourth largest fixed satellite services operator. The
company provides reliable and secure satellite-delivered communications
solutions to broadcast, telecom, corporate and government customers. Telesat
has a global state-of-the-art fleet of 13 satellites and one additional
satellite under construction, and manages the operations of 13 additional
satellites for third parties. Telesat is privately held. Its principal
shareholders are Canada's Public Sector Pension Investment Board and Loral
Space & Communications Inc. (NASDAQ:   LORL).

    Statement under the Private Securities Litigation Reform Act

    This news release may contain statements that are not based on historical
fact and are "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Statements in this release
concerning the beliefs, expectations, intentions, future events, future
performance, business prospects and business strategy, including statements
regarding projections for 2009 and beyond, are based on several assumptions.
If any of these assumptions are not satisfied or prove to be incorrect, actual
results could differ materially from those indicated in the forward-looking
statements, depending on a variety of factors including, but not limited to,
Telesat's ability to implement its business strategy and competition in the
market. The information presented in this release reflects Telesat's
expectations as of the date of this release. Telesat undertakes no obligation
to update or revise the information herein.

For further information:

For further information: Vanessa Brûlé, Telesat, (613) 748-8700 ext.
2407, (

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