Telesat Reports Results for the Second Quarter Ended June 30, 2013

Telesat Reports Results for the Second Quarter Ended June 30, 2013

OTTAWA, Aug. 1, 2013 (GLOBE NEWSWIRE) -- Telesat Holdings Inc. ("Telesat")
(TELSAT 11 11/01/15 Corp) (TELSAT 12 1/2 11/01/17 Corp) today announced its
financial results for the three and six month periods ended June 30, 2013. All
amounts are in Canadian dollars and are reported under International Financial
Reporting Standards ("IFRS") unless otherwise noted.

For the quarter ended June 30, 2013, Telesat reported consolidated revenues of
$216 million, an increase of approximately 7% ($14 million) compared to the
same period in 2012. Revenue growth was principally the result of the entry
into commercial service of the Nimiq 6 and Anik G1 satellites in June 2012 and
May 2013, respectively. Operating expenses of $49 million were 6% ($3 million)
lower than for the same period in 2012 related primarily to lower compensation
expenses. Adjusted EBITDA^1 was $172 million, an increase of 10% ($16 million)
over the same period in 2012. The Adjusted EBITDA margin^1 for the second
quarter of 2013 was 80%, compared to 77% in the same period in 2012.

For the six month period ended June 30, 2013, consolidated revenues were $435
million, an increase of approximately 9% ($37 million) compared to the same
period in 2012, primarily reflecting the addition of the Nimiq 6 satellite in
2012, the addition of the Anik G1 satellite in 2013, and higher equipment
sales. Operating expenses were $99 million, a decrease of 27% ($36 million)
compared to 2012 related primarily to special compensation payments to
executives and certain employees in connection with the cash distribution made
to Telesat's shareholders in 2012. The Adjusted EBITDA margin^1 for the first
half of 2013 was 79%, compared to 78% in the same period in 2012.

Telesat's net income for the quarter was $15 million compared to net loss of
$244 million for the quarter ended June 30, 2012. For the six month period
ended June 30, 2013, the net loss was $83 million, compared to a net loss of
$145 million in 2012. Results in both the second quarter and first half of
2013 were favorably impacted by an increase in revenues, lower operating
expenses, reduced losses on refinancing and by non-cash gains on changes in
the fair value of financial instruments, partially offset by increased
non-cash losses on foreign exchange related to the translation of Telesat's US
dollar denominated debt balances into Canadian dollars.

"I am very pleased with the meaningful growth in revenue and Adjusted EBITDA
we achieved in the second quarter compared to the same period last year,"
commented Dan Goldberg, Telesat's President and CEO. "In light of our strong
growth in the first half of the year, the recent entry into service of our
Anik G1 satellite, and our industry-leading contractual backlog, we are well
positioned to continue to grow our business this year and beyond."

Business Highlights

  *Telesat has contracted with Astrium SAS to procure a powerful,
    multi-mission satellite that will replace and expand on Telstar 12 at 15
    degrees West. This new state-of-the-art satellite, which Telesat expects
    to launch in late 2015, will utilize high throughput capabilities and
    offer superior performance to meet the growing needs of broadcast,
    corporate, government and enterprise users, including demand for aero and
    maritime services. The satellite will offer a high level of flexibility
    with coverage of Europe, the Americas, the Middle East, Africa, the
    Caribbean, North Sea, Mediterranean and South Atlantic regions.
  *On May 8, 2013, commercial service began on Telesat's new Anik G1
    satellite, which was launched on April 15, 2013. Anik G1 is located at
    107.3 degrees West Longitude orbital location providing a range of
    communications services, including direct-to-home ("DTH") video for
    Canada, X-band for government applications in the Americas and Pacific
    Ocean Region, and C-band and Ku-band services in South America.

At June 30, 2013:

    *Telesat had contracted backlog for future services of approximately $4.9

    *Fleet utilization was 91% for Telesat's North American fleet and 77% for
      Telesat's international fleet.The fleet utilization reflects the entry
      of Anik G1 into commercial service.

  *On April 2, 2013, Telesat Canada and Telesat LLC re-priced and amended
    their existing credit agreement, dated March 28, 2012 (the "Credit
    Agreement"). The amendment converted $34 million from Canadian to U.S.
    dollars and decreased the interest rates on the Canadian Term Loan B
    Facility and U.S. Term Loan B Facility by 0.50%. The amendment also
    decreased the interest rate floors on the debt to 1.00% and 0.75% for the
    Canadian Term Loan B Facility and U.S. Term Loan B Facility, respectively.
    The permitted leverage ratio to incur first lien debt is now 4.25:1.00
    which represents a change from the prior 4.00:1.00 senior secured leverage
    ratio test in the Credit Agreement.
  *On May 1, 2013, Telesat Canada and Telesat LLC completed the redemption of
    all of their 12.5% Senior Subordinated Notes due November 1, 2017, issued
    under an indenture dated as of June 30, 2008. The redemption took place at
    a price equal to 106.25% of the principal amount of the Senior
    Subordinated Notes.

Telesat's report on Form 6-K for the quarter ended June 30, 2013 has been
filed with the U.S. Securities and Exchange Commission (SEC) and may be
accessed on the SEC's website at

Telesat has scheduled a conference call on Thursday, August 1, 2013 at 10:30
a.m. ET to discuss its financial results for the quarter ended June 30, 2013
and other recent developments. The call will be hosted by Daniel S. Goldberg,
President and Chief Executive Officer, and Michel Cayouette, Chief Financial
Officer, of Telesat.

  Dial-in Instructions:

  The toll-free dial-in number for the teleconference is +1 (800)
  396-7098.Callers outside of North America should dial +1 (416) 695-7848.
  The conference reference number is 4154285.Please allow at least 15 minutes
  prior to the scheduled start time to connect to the teleconference.

  Dial-in Audio Replay:

  A replay of the teleconference will be available one hour after the end of
  the call on August 1, 2013, until 11:59 p.m. ET on August 15, 2013.To
  access the replay, please call +1 (800) 408-3053.Callers outside of North
  America should dial +1 (905) 694-9451.The access code is 9330944 followed
  by the number sign (#).

All Adjusted EBITDA and Adjusted EBITDA margins included in this release are
non-IFRS financial measures, as described in the End Notes section of this
release. For information reconciling non-IFRS financial measures to the most
comparable IFRS financial measures, please see the consolidated financial
information below.

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 "expect", "will", "would", "well positioned to" 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" section of Telesat Holdings Inc.'s Annual Report on Form 20-F
for the fiscal year ended December 31, 2012 as well as Telesat Canada's other
filings with the United States Securities and Exchange Commission (SEC), which
can be obtained on the SEC's website at 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, volatility in exchange rates 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.

About Telesat (

Telesat is a leading global satellite operator, providing reliable and secure
satellite-delivered communications solutions worldwide to broadcast, telecom,
corporate and government customers. Headquartered in Ottawa, Canada, with
offices and facilities around the world, the company's state-of-the-art fleet
consists of 14 satellites, and the Canadian payload on ViaSat-1 with another
satellite under construction. Telesat also manages the operations of
additional satellites for third parties. Privately held, Telesat's principal
shareholders are Canada's Public Sector Pension Investment Board and Loral
Space & Communications Inc. (Nasdaq:LORL).

Telesat Holdings Inc.                                          
Condensed Consolidated Statements of                            
Income (Loss)
For the period ended June 30                                   
                             Three months            Six months
(in thousands of Canadian     2013      2012^(2)    2013       2012^(2)
dollars) (unaudited)
Revenue                       $216,350 $201,913   $435,198  $398,171
Operating expenses            (49,373)  (52,418)    (99,363)   (135,751)
                             166,977   149,495     335,835    262,420
Depreciation                  (52,668)  (51,079)    (102,578)  (101,039)
Amortization                  (8,190)   (9,150)     (16,354)   (18,252)
Other operating losses, net   (2,033)   (18)        (1,562)    (76)
Operating income              104,086   89,248      215,341    143,053
Interest expense              (54,049)  (64,225)    (115,879)  (118,938)
Loss on financing             (134)     (54,164)    (18,493)   (76,052)
Interest and other income     10,591    246         10,976     971
Gain (loss) on changes in
fair value of financial       72,405    (149,990)   17,218     (89,017)
(Loss) gain on foreign        (100,513) (53,745)    (168,074)  5,027
Income (loss) before tax      32,386    (232,630)   (58,911)   (134,956)
Tax expense                   (17,468)  (10,949)    (23,589)   (10,354)
Net income (loss)             $14,918  $(243,579) $(82,500) $(145,310)

Telesat Holdings Inc.                                      
Condensed Consolidated Balance Sheets                      
(in thousands of Canadian dollars)           June 30, 2013 December 31, 2012
Cash and cash equivalents                    $131,418     $180,961
Trade and other receivables                  54,247        63,762
Other current financial assets               7,173         6,799
Prepaid expenses and other current assets    25,743        22,946
Total current assets                         218,581       274,468
Satellites, property and other equipment     2,024,924     2,090,754
Other long-term financial assets             33,907        131,535
Other long-term assets                       3,171         4,692
Intangible assets                            842,985       858,697
Goodwill                                     2,446,603     2,446,603
Total assets                                 $5,570,171   $5,806,749
Trade and other payables                     $28,181      $35,709
Other current financial liabilities          83,313        90,591
Other current liabilities                    117,691       77,930
Current indebtedness                         44,836        31,953
Total current liabilities                    274,021       236,183
Long-term indebtedness                       3,285,718     3,374,977
Deferred tax liabilities                     480,273       485,163
Other long-term financial liabilities        182,509       281,462
Other long-term liabilities                  400,916       402,232
Total liabilities                            4,623,437     4,780,017
Shareholders' Equity                                       
Share capital                                656,556       656,394
Accumulated earnings                         289,850       373,042
Reserves                                     328           (2,704)
Total shareholders' equity                   946,734       1,026,732
Total liabilities and shareholders' equity   $5,570,171   $5,806,749

Telesat Holdings Inc.                                            
Condensed Consolidated Statements of Cash Flows                  
For the six months ended June 30                                 
(in thousands of Canadian dollars) (unaudited)       2013         2012^(2)
Cash flows from operating activities                             
Net loss                                             $(82,500)  $(145,310)
Adjustments to reconcile net loss to cash flows from             
operating activities:
Amortization and depreciation                        118,932     119,291
Deferred tax expense                                 5,917       10,177
Unrealized foreign exchange loss (gain)              172,915     (11,399)
(Gain) loss on derivatives                           (17,218)    89,017
Share based compensation                             4,843       598
Loss on disposal of assets                           1,562       76
Loss on financing                                    18,493      76,052
Interest expense on employee benefit plans           1,320       1,608
Other                                                (18,113)    (24,428)
Customer prepayments on future satellite services    --          38,345
Insurance proceeds                                   --          314
Repurchase of stock options and exercise of share    (1,196)     --
appreciation rights
Operating assets and liabilities                     48,109      (2,038)
Net cash from operating activities                   $253,064   $152,303
Cash flows used in investing activities                          
Satellite programs                                   $(33,506)  $(121,852)
Purchase of other property and equipment             (5,082)     (5,051)
Purchase of intangible assets                        (6)         --
Proceeds from sale of assets                         1,022       20
Net cash used in investing activities                $(37,572)  $(126,883)
Cash flows used in financing activities                          
Proceeds from indebtedness                           $--       $3,099,658
Proceeds from issue of promissory note               --          145,466
Repayment of indebtedness                            (249,017)   (2,601,803)
Repayment of senior preferred shares                 --          (141,435)
Payment of premium on early retirement of            (13,793)    (39,444)
Payment of debt issue costs                          (810)       (48,140)
Return of capital to shareholders                    --          (586,202)
Dividends paid on preferred shares                   (10)        --
Satellite performance incentive payments             (2,324)      (2,008)
Net cash used in financing activities                $(265,954) $(173,908)
Effect of changes in exchange rates on cash and cash $919       $(369)
(Decrease) in cash and cash equivalents              $(49,543)  $(148,857)
Cash and cash equivalents, beginning of period       180,961     277,962
Cash and cash equivalents, end of period             $131,418   $129,105
Supplemental disclosure of cash flow information                 
Interest received                                    $440       $835
Interest paid                                        $114,386   $132,310
Income taxes paid                                    $10,377    $2,114

Telesat's Adjusted EBITDA margin^1:

                             Three months            Six months
(in thousands of Canadian     2013       2012^(2)     2013        2012^(2)
dollars) (unaudited)
Net income (loss)             $14,918  $(243,579) $(82,500) $(145,310)
Tax expense                   17,468    10,949      23,589     10,354
(Gain) loss on changes in
fair value of financial       (72,405)  149,990     (17,218)   89,017
Loss (gain) on foreign        100,513   53,745      168,074    (5,027)
Interest and other income     (10,591)  (246)       (10,976)   (971)
Loss on financing             134       54,164     18,493     76,052
Interest expense              54,049    64,225      115,879    118,938
Depreciation                  52,668    51,079      102,578    101,039
Amortization                  8,190     9,150       16,354     18,252
Other operating losses, net   2,033     18          1,562      76
Special compensation and
benefit expense for           301       6,576       1,663      43,578
executives and employees
Non-recurring professional
fees associated with
financing and special         --       (168)      --        1,916
payments to independent
Non-cash expense related to   4,800     299         4,843      598
share-based compensation
Adjusted EBITDA               $172,078 $156,202   $342,341  $308,512
Revenue                       $216,350 $201,913   $435,198  $398,171
Adjusted EBITDA Margin        79.5%      77.4%        78.7%       77.5%

End Notes

^1 The common definition of EBITDA is "Earnings Before Interest, Taxes,
Depreciation and Amortization." In evaluating financial performance, Telesat
uses revenue and deducts certain operating expenses (including share based
compensation expense and unusual and non-recurring items, including
restructuring related expenses) to obtain operating income before interest,
taxes, depreciation and amortization ("Adjusted EBITDA") and the Adjusted
EBITDA margin (defined as the ratio of Adjusted EBITDA to revenue) as measures
of Telesat's operating performance.

Adjusted EBITDA allows Telesat and investors to compare Telesat's operating
results with that of competitors exclusive of depreciation and amortization,
interest and investment income, interest expense, taxes and certain other
expenses. Financial results of competitors in the satellite services industry
have significant variations that can result from timing of capital
expenditures, the amount of intangible assets recorded, the differences in
assets' lives, the timing and amount of investments, the effects of other
income (expense), and unusual and non-recurring items. The use of Adjusted
EBITDA assists Telesat and investors to compare operating results exclusive of
these items. Competitors in the satellite services industry have significantly
different capital structures. Telesat believes the use of Adjusted EBITDA
improves comparability of performance by excluding interest expense.

Telesat believes the use of Adjusted EBITDA and the Adjusted EBITDA margin
along with IFRS financial measures enhances the understanding of Telesat's
operating results and is useful to Telesat and investors in comparing
performance with competitors, estimating enterprise value and making
investment decisions. Adjusted EBITDA as used here may not be the same as
similarly titled measures reported by competitors. Adjusted EBITDA should be
used in conjunction withIFRS financial measures and is not presented as a
substitute for cash flows from operations as a measure of Telesat's liquidity
or as a substitute for net income as an indicator of Telesat's operating

^2 A change in accounting policy has resulted in a change to the 2012
comparative figures.For more information on the impacts of the change, please
refer to note 3 of Telesat's condensed consolidated interim statements, filed
with the SEC on a Form 6-K dated today.

CONTACT: Michael Bolitho, Telesat
         +1 (613) 748-8700 ext. 2336
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