MDA Closes on Space Systems/Loral Acquisition

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New York/Richmond, BC (SS/L-MDA PR) – MacDonald, Dettwiler and Associates Ltd. (TSX: MDA), a provider of essential information solutions, announced today that it has completed and formally closed the previously announced acquisition of Space Systems/Loral, Inc. (SS/L). The combination of MDA and SS/L creates a leading global communications and information company.

At closing, Loral received $968 million in cash plus a bank guaranteed three-year promissory note in the principal amount of $101 million for the purchase of certain real estate used in connection with SS/L’s business.

“We are exceptionally pleased that we have closed the SS/L sale transaction at a value that recognizes SS/L’s leadership and premier position in the global satellite manufacturing business,” said Michael B. Targoff, Chief Executive Officer of Loral Space & Communications. “Congratulations to MDA. We are confident that the combination of SS/L with MDA will benefit SS/L’s employees, customers and suppliers and the entire satellite communications industry.”

“We are proud of our management team’s success in establishing SS/L as a leading global commercial satellite manufacturer and in bringing the transaction with MDA to closure,” said Dr. Mark Rachesky, Chairman of the Board of Directors of Loral. “The transaction reflects the Board’s continued commitment to delivering significant value to all Loral shareholders, and the Board will evaluate the opportunity to return capital to shareholders through a cash distribution of the net cash proceeds from this sale transaction.”

The acquisition is being financed by a combination of cash on hand, a three-year promissory note of US$101,000,000, a new twelve-year senior secured note of US$250,000,000 with two major U.S. financial institutions, an existing senior secured note of US$100,000,000, and approximately $600,000,000 of variable rate term and revolving loans under a new four-year US$850,000,000 senior secured syndicated credit facility.

Bank of America Merrill Lynch acted as lead financial advisor to MDA in connection with the transaction. RBC Capital Markets and BMO Capital Markets also provided financial advice to MDA related to this transaction.

Loral Space & Communications Inc., the parent company of SS/L as at September 30, 2012, expects to issue its third quarter U.S. GAAP financial results on or about November 8, 2012.

About MDA

MDA is a unique global communications and information company providing operational solutions to commercial and government organizations worldwide.

MDA’s business is focused on markets and customers with strong repeat business potential. In addition the Company conducts a significant amount of advanced technology development.

MDA’s well-established global customer base is served by more than 5,000 employees operating from 18 offices located in the United States, Canada, and internationally.

The Company’s common shares trade under the symbol TSX:MDA.

About Loral Space & Communications

Loral Space & Communications is a satellite communications company. Loral owns 64 percent of Telesat Canada, a global operator of telecommunications and direct broadcast satellites used to distribute video entertainment programming, broadband data, and provide access to Internet services and other value-added communications services. For more information, visit Loral’s web site at www.loral.com.

EDITOR’S NOTE:  The acquisition gives MDA greater access to the much larger U.S. market, including American military contracts. The U.S. government is pursuing projects such as robotic satellite servicing that is right up MDA’s alley.