International Launch Services (ILS)
finalized a contract with Telesat this week to launch the Anik F1R satellite
on a Russian Proton rocket in 2005. The deal includes an option for
launching an additional satellite. Financial terms were not disclosed.

“We are extremely pleased to be working with International Launch Services –
our partner in the successful launch of both our direct broadcast
satellites, Nimiq 1 and Nimiq 2,” said Larry Boisvert, Telesat’s president
and CEO. “ILS offered Telesat the right blend of experience, innovation and
ease of doing business, and we look forward to working with their team once
again.”

The contract follows by less than three months the launch of Telesat’s Nimiq
2 satellite in the first commercial flight of the Proton M/Breeze M
configuration of the vehicle. The rocket lifted off Dec. 30 from the
Baikonur Cosmodrome in Kazakhstan, in ILS’ 10th and final mission of 2002.
The Anik F1R launch will also use a Proton/Breeze M vehicle.

“We thank Telesat for its continued confidence in ILS and the Proton,” ILS
President Mark Albrecht said. “We’re determined to make this a
triple-header – Telesat’s third mission with ILS, its third on a Proton and
it will be the third success!”

The satellite is a Eurostar 3000 model being built by Astrium, Europe’s
largest space company. This type of spacecraft is currently being integrated
on a Proton/Breeze M for another customer’s mission.

ILS is a joint venture of Lockheed Martin Corp. (NYSE:LMT) in the United
States, which builds the Atlas rocket; and Russian companies Khrunichev
State Research and Production Space Center and RSC Energia. Khrunichev
produces the Proton vehicles and the Breeze M upper stage.

About Telesat

Telesat is a pioneer in satellite operations and systems management. The
company made history in 1972 with the launch of the first domestic
commercial communications satellite in geostationary orbit. Today, Telesat
competes with other top international satellite fleets in providing
telecommunications and broadcasting services throughout the Americas and
consulting services worldwide. Telesat is a wholly owned subsidiary of BCE
Inc., Canada’s largest communications company.

About ILS

ILS was formed in 1995 to provide launch services to customers worldwide,
including technical, management and marketing expertise. It offers the
broadest range of launch services in the world along with the highest
reliability in the industry.

From left to right: Roger Tinley, Vice President Satellite Systems, Telesat
Canada; Larry Boisvert, President & CEO, Telesat Canada; Len Dest, Executive
Vice President, ILS; Thomas Carroll, Director, Sales & Marketing, ILS

Contacts:

For ILS: Fran Slimmer, International Launch Services, McLean, Va.;
1-571-633-7462; mobile:1-646-229-4801; fran.slimmer@lmco.com.