LORL Loral Space and Communications Inc

Telesat U.S. Services, LLC, a wholly owned subsidiary of leading global satellite operator Telesat, has been awarded a contract by DARPA (Defense Advanced Research Projects Agency) for the development and in-orbit demonstration of commercial low-Earth-orbit (LEO) spacecraft buses in a LEO constellation network with robust low-latency communications features as part of DARPA’s Blackjack program. Following Telesat’s initial 2018 contract for system engineering and interface definition under the Blackjack Phase 1 program, Telesat U.S. Services will develop and demonstrate the Blackjack Phase 2/3 Track B technology, including in-orbit testing the capabilities of Optical Inter-Satellite Links (OISLs).

As part of Phase 2, Telesat U.S. Services will deliver two spacecraft buses to DARPA in less than one year for a “risk reduction” flight to test OISL communications with government payloads in orbit and to demonstrate OISL interoperability with different hardware. The Phase 2 base contract represents an $18.3 million program for Telesat U.S. Services. Subsequently, additional Telesat LEO spacecraft may be procured to fully populate the Blackjack constellation, which represents a total contract value of up to $175.6 million if all options are exercised.

“This next phase of the Blackjack program will showcase the powerful capabilities that commercial LEO networks bring to a hybrid architecture for government space communications,” said Don Brown, General Manager, Telesat U.S. Services. “With OISLs and advanced networking native to the Telesat LEO constellation architecture, we are uniquely positioned to deliver interoperable mesh connectivity between government and commercial constellations. We look forward to continuing our work with DARPA to prove out the game-changing nature of hybrid commercial-government networks.”

The Blackjack program is a demonstration of LEO satellites in hybrid commercial-government constellations offering highly resilient space systems, global persistence, low latency communications and rapid technology refresh. These enabling objectives will be accomplished by leveraging commercial space technologies including commoditized spacecraft buses, ground infrastructure and user segments at unprecedented low costs. The Telesat LEO constellation includes a number of distinctive features that align with the Blackjack program vision, including spacecraft buses with native OISL capability, mesh networking, onboard processing, and a full global network architecture backed by global priority spectrum allocations.

About Telesat

Backed by a legacy of engineering excellence, reliability and industry-leading customer service, Telesat has grown to be one of the largest and most successful global satellite operators. Telesat works collaboratively with its customers to deliver critical connectivity solutions that tackle the world’s most complex communications challenges, providing powerful advantages that improve their operations and drive growth. Telesat LEO, our Low Earth Orbit network, will revolutionize global broadband connectivity by delivering a combination of high capacity, security, resiliency and affordability with ultra-low latency and fiber-like speeds.

Privately held and headquartered in Ottawa, Canada with offices and facilities around the world, Telesat’s principal shareholders are Canada’s Public Sector Pension Investment Board and Loral Space & Communications Inc. (NASDAQ: LORL). For more information, visit www.telesat.com.

Media contact:

KWT Global for Telesattelesat@kwtglobal.com

Forward-Looking Statements Safe Harbor

This news release contains statements that are not based on historical fact and are ''forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this news release, the words “will”, “if”, “may”, or other variations of these words or other similar expressions are intended to identify forward-looking statements and information. Actual results may differ materially from the expectations expressed or implied in the forward-looking statements as a result of known and unknown risks and uncertainties. Detailed information about some of the known risks and uncertainties is included in the "Risk Factors" sections of Telesat Canada's Annual Report on Form 20-F for the fiscal year ended December 31, 2019 and in Telesat Canada’s Quarterly Report on Form 6-K for the quarters ending March 31, 2020 and June 30, 2020, all of which can be obtained from the SEC website.

Known risks and uncertainties include but are not limited to: risks associated with operating satellites and providing satellite services, including satellite construction or launch delays, launch failures, in-orbit failures or impaired satellite performance, the impact of COVID-19 on Telesat’s business and the economic environment, the ability to successfully deploy an advanced global LEO satellite constellation, the availability of government and/or other funding for the LEO satellite constellation, the receipt of proceeds in relation to the re-allocation of C-band spectrum, volatility in exchange rates, the ability to expand our existing satellite utilization and risks associated with domestic and foreign government regulation. The foregoing list of important factors is not exhaustive. The information contained in this news release reflects Telesat's beliefs, assumptions, intentions, plans and expectations as of the date of this news release. Except as required by law, Telesat disclaims any obligation or undertaking to update or revise the information herein.