Telesat Holdings Inc. Announces Second Quarter Earnings

    OTTAWA, Aug. 11 /CNW/ - Telesat Holdings Inc. (Telesat) today announced
its financial results for the three and six month periods ended June 30, 2008.
Unless otherwise stated herein, all amounts are in Canadian Dollars (CAD).
    Consolidated revenues and EBITDA for the six month period were
$332 million, and $201 million respectively. For the quarter ending June 30,
2008, revenues were $170 million, and EBITDA was $104 million. Quarterly
revenues and EBITDA both increased by $7 million from $163 and $97 million,
respectively, in the first quarter, reflecting sales increases in all business
units and cost savings from the synergy plan. Quarter-over-quarter operating
expenses were flat as additional savings from Telesat's synergy program were
offset by a combination of in-orbit insurance for Anik F3 and certain costs
related to the higher revenues, the combination of which totaled more than
$2 million. As a result, the EBITDA margin improved to 61% at the end of the
second quarter, up from 60% at the end of the first quarter, and an
improvement from the year end 2007 level of approximately 55%.
    Telesat reported a net loss for the six months ended June 30, 2008 of
$89 million. For the most recent quarter, the net profit was $12 million. For
the six month period, the net loss is primarily driven by interest expense on
the debt and non-cash, unrealized foreign exchange losses related to the
Company's US-dollar denominated debt. The foreign exchange loss for the six
months was $102 million and for the three months ended June 30, 2008 was a
gain of $21 million. The Canadian dollar decreased by 3.05 cents relative to
the US dollar in the first six months and increased by 0.93 cents in the three
months ended June 30.
    "I am very pleased with our second quarter and first half financial and
operating performance," said Dan Goldberg, President and CEO. "We are
executing well both with respect to our top line results and controlling our
expenses, including delivering on our synergy plan."
    Telesat now expects to launch its Nimiq 4 satellite on a Proton launch
vehicle late in the 3rd quarter of 2008, subject to the successful completion
of the next Proton launch mission scheduled earlier in the quarter.
    Telesat has posted its unaudited Consolidated Financial Statements for
the three and six month periods ended June 30, 2008 on its website at in the "Investor Relations" section.

    Conference Call

    Telesat has scheduled a conference call to discuss its financial results
for the three and six month periods ended June 30, 2008 and other recent
developments for Monday, August 11, 2008 at 10:00 a.m. EDT. The call will be
led by Daniel S. Goldberg, President & Chief Executive Officer and Ted H.
Ignacy, Chief Financial Officer of Telesat. A presentation to 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 +1-866-696-5910.
    International callers should dial +1-416-340-2217. The access code is
3268083 followed by the number sign. Please allow at least 10 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
12:00 p.m. EDT August 11, 2008, until 11:59 p.m. EDT on August 25, 2008. To
access the replay, please call +1-800-408-3053. International callers should
dial +1-416-695-5800. The access code is 3268083 followed by the number sign.

    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 12 satellites and three additional
satellites 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 2008 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.

                            Telesat Holdings Inc.
                 Unaudited, Consolidated Financial Highlights
                               (CAD$ millions)

                            Three Months     Three Months     Two Months
                               Ended            Ended            Ended
                            June 30/2008    March 31/2008   December 30/2007

    Total Operating Revenues     $169.5           $162.7           $111.4

    Total Operating Expenses      $65.5            $65.5            $49.8

    Net Income (Loss)             $12.4          ($101.4)           ($4.1)

    Total Assets               $5,501.5         $5,542.2         $5,545.4

    Total Debt Financing       $2,923.7         $2,921.5         $2,794.4

    Shareholders' Equity       $1,204.5         $1,191.0         $1,293.5

    Total Operating Expenses exclude amortization

                            Telesat Holdings Inc.
           Unaudited Reconciliation of Net Income (Loss) to EBITDA
                               (CAD$ millions)

                            Three Months     Three Months     Two Months
                               Ended            Ended            Ended
                            June 30/2008    March 31/2008   December 30/2007

    Net Loss                      $12.4          ($101.4)           ($4.1)

      Income Tax Expense
       (Recovery)                  17.6            (16.3)           (62.2)
      Other Expense (income)      (39.1)            90.9             44.0
      Interest Expense             55.7             65.3             43.9
      Amortization                 57.4             58.7             40.0
                                   ----             ----             ----

    EBITDA                       $104.0            $97.2            $61.6
                                  -----             ----             ----
                                  -----             ----             ----

    EBITDA margin                   61%              60%              55%


    Telesat Holdings Inc. ("Telesat" or "Telesat's") EBITDA consists of
earnings before interest, taxes, other income, and depreciation and
amortization. EBITDA is a measure commonly used in the fixed satellite
services sector, and Telesat presents Telesat's EBITDA to provide further
information with respect to its operating performance. Telesat's EBITDA margin
is defined as Telesat's EBITDA divided by total revenues. Telesat's EBITDA is
used as one criterion for evaluating its performance relative to that of its
peers. It is believed that Telesat's 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 EBITDA and Telesat's 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 EBITDA or Telesat's 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.

For further information:

For further information: Gail Yamazaki, Telesat, (240) 751-4654,; Karen Passmore, Argyle Communications, (416) 968-7311,
ext 228,; Kyla Thoms, Argyle
Communications, (416) 968-7311, ext 237,

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