Loral Wins Spanish Contract for Two Military Satellites

The Spanish Ministry of Defense has selected Space Systems Loral to build two new satellites to provide leased transponder and network communications services. No launch provider has been selected yet.

Two new companies have been formed to provide leased satellite services: Hisdesat, S.A., which includes various Spanish partner companies, and XTAR, a satellite communications services company in which Loral will hold a 51% interest as managing partner with the newly formed Hisdesat. Hisdesat SA, will be held by Hispasat (45%), INSA (30%), EADS CASA Espacio (13%), Indra (7%) and Sener (5%).

Loral will build the US$150 million SpainSat, for Hisdesat, which will provide dedicated communications for the Spanish Ministry of Defense. SpainSat will carry nine specially configured X-band transponders and a Ka-band payload and will operate from the 30°W orbital position, providing coverage of Spain, Europe, Africa and the Americas. SpainSat is scheduled to enter service in 2004.

Loral will build the XTAR-EUR satellite for XTAR, which will offer leased transponder services to government customers and provide back-up service for the Spanish Ministry of Defense. The XTAR-EUR satellite will carry twelve wideband X-band transponders and be located in either an Atlantic or Indian Ocean region orbital slot to be determined by XTAR. The satellite, in conjunction with the SpainSat satellite, will extend the coverage area to include Eastern Europe and the Middle East. Loral Skynet will provide telemetry, tracking and control (TT&C) services for XTAR from its existing ground stations. XTAR is scheduled to enter service in 2003.

Both satellites will be available to provide leased services to government users in the United States and Spain, as well as other friendly and allied nations within the satellites' extensive coverage area. Both spacecraft are designed to meet the growing demands of government users and will be able to operate with existing and planned communications infrastructure.

For XTAR, Loral and Hisdesat will provide initial financing of US$55 million over the next two years. The remainder of required financing will be arranged by XTAR.

X-band refers to a range of radio frequencies from approximately 7 to 8 GHz, between C-band and Ku-band. X-band offers higher power and better data rates than C-band and requires smaller dishes. X-band is less susceptible to occasional rain fade than Ku-band. The U.S. and NATO use X-band frequencies for military and other government uses.

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