Loral Reports Third Quarter 1999 Financial Results - Company Financial Information

Cambridge Telcom Report, Nov 1, 1999

Also in September, Neue Zuercher Zeitung (NZZ), one of the world's leading German language newspapers, selected Loral Orion to expand and upgrade its internal data network by providing bandwidth that can be dynamically allocated for more rapid distribution of the news to new markets worldwide. NZZ's publishing business is time-sensitive and data-intensive, requiring a wide-bandwidth solution that can be actively and readily controlled.

Loral Orion's two-megabit-per-second switching bandwidth service, called Dynalink, gives NZZ the ability to manage a pool of bandwidth and allocate it in any combination to either of its two printing facilities in Frankfurt or Munich, Germany, for sending and receiving high-bandwidth data files. Editing of this information can then occur without using expensive, fixed terrestrial connections.

Global Mobile Telephony Globalstar officially introduced its global mobile telephony service at the International Telecommunications Union's quadrennial Geneva Telecom `99 tradeshow during the week of October 10-17. At the show, Globalstar and its partners demonstrated a variety of satellite-based phone products, including lightweight portable phones, fixed application phones and payphones, as well as maritime and car kit phones. Company personnel and visitors to the company's booth and outdoor tent placed in excess of 40,000 telephone calls over the Globalstar system throughout the week in Geneva.

Globalstar and its founding partners and equipment manufacturers participated in a press conference at the show where plans for the phased roll-out of service were discussed. By the end of this year approximately 40,000-50,000 of the initial order of 300,000 telephones will be available for distribution. Nine gateways are in operation now to support the initiation of service. In the first quarter of 2000, 16 operating gateways will cover 30 countries. Service providers have begun to place advertising directed at their target markets and continue to forecast strong demand for Globalstar service.

Continued successful launches marked the third quarter, including two Delta II rockets in July, another in August, and a Soyuz launch in September. On October 18, Globalstar launched an additional four satellites aboard a Soyuz rocket from the Baikonur Cosmodrome in Kazakhstan, bringing its space segment constellation to 44 satellites. Ultimately, Globalstar will have 52 satellites, including four in-orbit spares, in its first-generation constellation.

Loral Space & Communications (NYSE:LOR) is a high-technology company that primarily concentrates on satellite manufacturing and satellite-based services, including broadcast transponder leasing and value-added services, domestic and international corporate data networks, global wireless telephony, broadband data transmission and formatting, Internet connectivity, digital audio radio services, and international direct-to-home satellite services. For more information, visit Loral's web site at http://www.loral.com.