Telesat reports second quarter results



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

    OTTAWA, Aug. 1 /CNW/ - 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 further information:

For further information: Ted Ignacy, Telesat, (613) 748-0123; Dan Tisch
or Karen Passmore (media only), Argyle Communications, Tel: (416) 968-7311,
ext. 223 or 228, dtisch@argylecommunications.com,
kpassmore@argylecommunications.com

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TELESAT CANADA

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