Space Systems/Loral (SS/L), the satellite manufacturer, was advised earlier by component provider AEG of Germany that the traveling wave tubes (TWTs) in the satellite assembly may be susceptible to thermally induced fatigue resulting in SS/L�s postponement of the launch pending further testing at the launch site.

To ensure that Telstar 6 performance specifications are met, replacement of the TWTs on the Telstar 6 satellite will be performed at SS/L's facility in Palo Alto, Calif. Upon replacement of the TWTs, the company expects to launch Telstar 6 and place it in service no later than in the second quarter of 1999.

"Loral Skynet is committed to providing our customers with a quality product. When we are certain that the satellite meets all specifications, we will move forward with and announce the new launch plans," stated Terry Hart, president, Loral Skynet. "Our service to customers will continue in the interim until Telstar 6 is available."

The satellites in Loral Skynet's current constellation, Telstar 4 and Telstar 5, are equipped with a different version of the traveling wave tubes and are operating normally. Telstar 7, currently under construction at SS/L, also is scheduled for launch in the second quarter of 1999.

Telstar 6, which carries a total of 52 transponders -- 24 at C-band and 28 at Ku-band -- will be one of the most sophisticated and powerful communications satellites available to broadcasters and program distributors in North America, covering the 50 United States, Puerto Rico, the Caribbean, and parts of Canada and Latin America.

The advanced Telstar 6 satellite will provide Loral Skynet's broadcasting, education and news-gathering customers with the clearest, and most interference-free broadcast video and data communications transmissions available in the industry today.

Loral Skynet Business Status

Loral Skynet of Bedminster, New Jersey, a subsidiary of Loral Space & Communications, is a leading satellite communications services provider that owns and operates the Telstar satellites. Loral Skynet's customers lease transponder capacity to distribute network television programming, to collect live video feeds for the reporting of news and events, and to offer direct-to-home and pay-per-view programming, distance learning, educational, and other business television services. Loral Skynet also provides technical consulting, as well as tracking, telemetry, and control of satellite fleets for a wide variety of customers. Loral Skynet operates Telstar 4 and Telstar 5, which provide C-band and Ku-band coverage over the continental United States, Hawaii, Alaska, Puerto Rico and the U.S. Virgin Islands. Through the recent privatization of Mexico's satellite operations, Loral, through Loral Skynet, also manages Satellites Mexicanos, S.A. de C.V. (SatMex). SatMex currently operates three satellites, Solidaridad 1, Solidaridad 2 and Morelos II. SatMex 5 (previously Morelos III), is scheduled for launch in November of 1998.