Commencing with the XTAR-EUR satellite's in-service date scheduled for late 2003, the SMOD will use 244 MHz of X-band capacity on XTAR-EUR until HISDESAT's SpainSat satellite enters service in 2004. At that time, the SMOD will have access to the XTAR transponders to backup its capacity on SpainSat. Both spacecraft are currently under construction at Space Systems/Loral (SS/L), Palo Alto, Calif.

"This service contract is a significant milestone for our newly formed company," said Bill Wright, president of XTAR. "As government demand for satellite bandwidth continues to grow, XTAR is uniquely positioned to augment existing government communication capabilities swiftly and efficiently."

The XTAR-EUR satellite, based on SS/L's space-proven 1300 platform, is designed to carry twelve wideband and high-power X-band transponders. The satellite will feature multiple steerable spot beams that allow it to follow its users as they travel anywhere within the footprint of the satellite. XTAR-EUR is designed to operate with existing and planned defense communications terminals around the world.

HISDESAT's SpainSat satellite will carry thirteen X-band and one Ka-band transponders when it enters service in the second quarter of 2004. HISDESAT will lease five of SpainSat's X-band transponders and the Ka-band transponder to the SMOD, with the remaining eight X-band transponders and related steerable spot beams to be leased by XTAR for defense customers in the U.S. and in other allied governments. Together, the two satellites will cover nearly two-thirds of the earth's surface, from North America to Southeast Asia.

"With XTAR-EUR and SpainSat, HISDESAT and Loral will be able to provide a unique, commercial X-band solution to the Spanish Government, providing timely access to capacity and cost-effective on-orbit redundancy," stated Jose Maria Hoyos, CEO of Spanish company HISDESAT. "Together, we look forward to serving the long term needs of Spain and its allies in worldwide defense communications."

XTAR, LLC is a new defense satellite communications company serving the communication needs of U.S., Spanish and allied governments' operations. The company is a joint venture between managing partner Loral and HISDESAT. XTAR is headquartered in Washington, D.C., and has offices in Madrid, Spain and Palo Alto, Calif.

The recently formed HISDESAT, S.A., headquartered in Madrid, is owned jointly by Hispasat, S.A., the Spanish commercial satellite services company, and the leaders of Spain's space industries - EADS-CASA Espacio, INDRA, INSA and SENER. Hispasat has been providing X-band services to the Spanish Ministry of Defense since 1992 and with this new project, HISDESAT will provide enhanced capabilities, including Ka-band, for Spain's defense applications.

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