"The U.S. Government's need for defense satellite communications, growing dramatically in the past decade, has far exceeded its current capabilities," said Bill Wright, president of XTAR. "We expect XTAR EUR and SpainSat to be the first satellites to answer the call of the U.S. and other governments for additional secure bandwidth and we intend to grow this service into a very successful X-band business."

The XTAR EUR satellite, to begin service in 2003, will carry twelve wideband high-power X-band transponders and operate from an Indian Ocean region orbital slot to be determined by XTAR. XTAR EUR is designed to operate with existing and planned defense communications terminals around the world.

SS/L will build a second satellite, SpainSat, for Hisdesat. SpainSat will operate thirteen specially configured high-power transponders, twelve at X-band and one at Ka-band, from its 30 degrees West longitude orbital position. SpainSat is expected to begin operations in 2004.

Hisdesat will lease five of SpainSat's X-band transponders to the Spanish Ministry of Defense, with the remaining eight X-band transponders to be leased by XTAR for defense customers in the U.S. and other allied governments. Together, XTAR EUR and SpainSat are designed to cover a vast geographic area, including the Americas, the Atlantic Ocean region, Western and Eastern Europe, Africa and the Middle East.

"With the launch of the SpainSat and XTAR EUR satellites, Spain will enter a new era of defense satellite communications capabilities, serving the growing bandwidth needs of the Spanish Ministry of Defense, the United States, NATO and friendly countries. Hisdesat is proud to be a partner with Loral in XTAR and we look forward to serving the long term needs of Spain's allies in defense communications," said Jos� Mar�a Hoyos, chief executive officer of Hisdesat.

Each spacecraft will provide 1000 MHz of bandwidth for use in defense networks. Both are versions of SS/L's space-proven 1300 satellite platform, which has an excellent record of reliable operation. Both XTAR-EUR and SpainSat have a designed service life of 15 years and will carry uniquely configured antennas onboard, providing a combination of fixed and steerable beams to maximize the satellite's flexibility. In all, SS/L satellites have amassed more than 850 years of on-orbit service.

With offices in Washington, D.C., XTAR is a new defense satellite communications company serving the U.S. and allied governments' operations. The company is a joint venture between managing partner Loral and Hisdesat.

The recently formed Hisdesat, S.A., with offices in Madrid, includes 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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