The Sea Launch team is gathering and
reviewing Telstar 18 mission data to understand the sequence of events that
led to a premature shutdown of the Sea Launch Zenit-3SL upper stage during
that mission earlier this week.

The Zenit-3SL launch vehicle lifted off from the equatorial launch site on
June 28 at 8:59pm PDT, (3:59 GMT, June 29) as scheduled, deploying Loral’s
Telstar 18 communications satellite into orbit with a separated mass of
4,640 kg (10,229 lb.). Based on preliminary flight data, all Sea Launch
system flight parameters were nominal except that the upper stage of the
launch vehicle shut down about 54 seconds prematurely, following the second
of two planned burns of the upper stage. The early shutdown caused the
satellite to be released into an orbit with an apogee of 21,605 km, some
14,000 km short of the 35,786 km target apogee.

Space Systems/Loral confirmed spacecraft signal acquisition by a ground
station in Perth, Australia, soon after separation and reported that the
satellite was operating normally. Loral Space & Communications has replanned
the mission and, if successful, the satellite has sufficient on-board fuel
to bring it to its final orbital position and meet or exceed its 13-year
specified life. Loral also reported the Telstar 18 spacecraft has deployed
its solar arrays and all systems on the spacecraft are functioning as
designed.

The cause of the rocket’s upper stage premature shutdown is under
investigation by an Energia-appointed commission. Sea Launch will also form
an independent review board to evaluate all findings and confirm that any
corrective actions associated with the upper stage performance on the
Telstar 18 mission are complete, satisfactory and verified. At this point in
time, Sea Launch is optimistic it will conclude the board’s investigation
and complete two more launches this year, as originally planned.

Sea Launch remains highly confident in the robust capability of the
Zenit-3SL system, including the upper stage. This component remains one of
the premiere upper stages in the industry, with an overall success rate of
approximately 97%.

Sea Launch Company, LLC, headquartered in Long Beach, Calif., and marketed
through Boeing Launch Services ( www.boeing.com/launch ), is the world’s
most reliable commercial heavy-lift launch services provider. This
multinational partnership offers the most direct and cost-effective route to
geostationary orbit. With the advantage of a launch site on the Equator, the
reliable Zenit-3SL rocket can lift a heavier spacecraft mass or provide
longer life on orbit, offering best value plus schedule assurance. For
additional information and images of this mission, please visit the Sea
Launch website at: www.sea-launch.com