Europe*Star will be a member of the Loral Global Alliance, a network comprising the satellite capacity of Loral Skynet, including the Telstar and Orion satellites and SatMex. As a member of the alliance, Europe*Star will be capable immediately of providing global satellite solutions, while focusing on the local and inter-regional needs within its coverage regions.

"Europe*Star is the strategic European-based component of the Alliance," said Benoit Tellier, vice president, Alcatel Space activities. "Alcatel is committed, through Europe*Star and other Alcatel companies, to expand its presence in satellite-based services. This partnership with Loral is central to that strategic objective."

Terry J. Hart, president of Loral Skynet, added, "Loral has taken an important strategic step by collaborating with Alcatel to create and operate Europe*Star and to integrate it into the Loral Global Alliance. Europe*Star is a template for future such ventures, and creates a unique and valuable tool to meet global customer needs through locally run satellite operators."

Alcatel and Loral signed shareholder agreements and established contracts governing the construction and deployment of the initial two-satellite system, co-located at 45? E.L., as well as specific operational elements. Beginning in the first quarter of 1999, Europe*Star Limited will base its operations in London, with additional facilities in Germany and France.

Europe*Star Limited is owned by Alcatel, as majority shareholder, and Loral Space & Communications, with interest held by the Dr. Schulte Hillen Group of Germany. The Dr. Schulte Hillen Group initiated the project and filed for Europe*Star�s three orbital positions (43°, 45° and 47.5° East) with German authorities in 1991 through Europe*Star GmbH.

As prime contractor for the satellite system, Alcatel will develop Europe*Star�s space and mission segments and will provide the telecommunications payload. Space Systems/Loral, a wholly owned subsidiary of Loral Space & Communications, will supply the integrated bus under subcontract to Alcatel. Satellite telemetry, tracking and control operations will be directed from Alcatel�s Toulouse, France, center, with support from Loral Skynet�s control facilities in Hawley, Pa. The launch of the Europe*Star 1 satellite is scheduled for mid-2000. A second satellite, Europe*Star 2, is expected to be launched in 2002 and will be co-located with Europe*Star 1 at 45 degrees East longitude.

The Europe*Star system�s technical design focuses on high-power transmission capacity and regional interconnectivity. Europe*Star will be the first satellite system to deliver Ku-band connections with direct-to-home (DTH) high power and quality between Europe and Southeast Asia due to its 45? East longitude orbital position. Europe*Star will also be the first to interconnect all five regions within its footprint, delivering the same high power for small receiver dish applications, all from a single satellite system. Europe*Star will enable broadcasters, network operators and service providers to offer the full range of television, data and telecommunications services, including video broadcast, DTH, Internet access, high-speed data exchange and rural telephony.

Loral & Alcatel Plan Europe*Star

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