Satmex Receives Insurance Payment from Claim of Loss of the Solidaridad 1 Satellite

Jan 22, 2001, 00:00 ET from Satmex

    MEXICO CITY, Jan. 22 /PRNewswire/ -- Satelites Mexicanos, S.A. de C.V.
 (Satmex) announced last week in Mexico that it had received full payment under
 the claim presented as a result of the total loss of the Solidaridad 1
 satellite, which occurred on August 27, 2000.  The company also announced that
 the funds would be largely dedicated to the construction and launch of the
 replacement satellite, Satmex 6.
     "We now have the resources necessary to finance the construction and
 launch of  the new satellite within the expected period.  This confirms our
 commitment to all of Satmex's stakeholders, including our clients, the Mexican
 authorities, as well as the financial community," noted Lauro Gonzalez, CEO of
     Satmex is a leading Mexican satellite operator in the Americas that leases
 C and Ku band capacity on the Solidaridad 2 and Satmex 5 geostationary
 satellites.  Through its business partners in the NAFTA region and Latin
 America, Satmex delivers over 170 DTH channels to thousands of households, as
 well as news and entertainment to approximately 500 million viewers throughout
 the continent.  Satmex provides high-speed connectivity to ISPs and digital
 broadcast services providers (DBS).  Everyday, millions of long distance
 telephone calls are transmitted by the Satmex fleet.  Distance learning, rural
 telephony and telemedicine, among others, are delivered through the Satmex
 satellites, contributing to the development of rural regions, the integration
 of Latin America and the rest of the continent, as well as more efficient
 communications in the world's largest cities.
     Satmex is a member of the Loral Global Alliance, offering its customers
 the advantages of a worldwide network of satellite capacity currently
 available on the Solidaridad 2 and Satmex 5 satellites, the eight-satellite
 Telstar fleet, on the just launched Europe*Star 1 and on planned Brazil
 satellites.  Through this Alliance, Satmex provides global satellite
 solutions, focusing on the needs and requirements of the Americas.  For more
 information, please visit the Satmex web site at
     Principia is a leading Mexican telecommunications company that is majority
 owned by the Autrey family and Mr. Lauro Gonzalez. In 1997, Principia and
 Loral Space & Communications were selected to acquire 75 percent of Satmex in
 connection with the privatization of Mexico's fixed satellite services. In
 association with Loral Space & Communications and Vodafone AirTouch
 Communications, Principia founded Globalstar de Mexico in 1996.
     Loral Space & Communications (NYSE:   LOR) is a high technology company that
 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 content services, Internet services and international
 direct-to-home satellite services.  For more information, visit Loral's web
 site at