Space Systems/Loral (SS/L), a Loral Space & Communications company, announced today that it has signed an agreement with KaStar Satellite Communications Corp. (KaSTAR) to construct two advanced Ka-band spot beam satellites. The contract is valued at over $300 million.

Under the contract, Space Systems/Loral will provide two satellites

operating on allocated Ka-band spectrum and potentially Ku-band digital

satellite services (DSS) spectrum. One satellite will operate at 109.2

degrees W.L. and the other at 73 degrees W.L., with spot beam capability

to South America. The first satellite will be delivered on orbit no

later than February 2002. Both will feature on-board processing which

will enable more cost-effective data rate service than the Internet and

data services provided by current wireline and wireless high-speed data

transmission suppliers.

KaSTAR, a Denver, Colo.-based company, will provide multimedia capacity

and services such as "Internet by Satellite." The KaSTAR Intelligent

Satellite System will operate like a "switch in the sky" and provide

high-speed, two-way interactive digital transmission on demand to ground

network operators as well as direct-to-site options for enterprises and

remote locations. KaSTAR intends to provide flexible, low-cost,

multimedia services initially across the U.S. and subsequently around

the world, as well as augment terrestrial systems. The KaSTAR

satellites are unique because they provide extremely flexible broadband

at low cost due to spot beams and on-board processing capabilities.

KaSTAR's prime Ka-band locations of 109.2 degrees W.L. and 73 degrees

W.L. provide full U.S. coverage and also offer a unique opportunity for

partnering with direct broadcast services (DBS) and other satellite

operators to provide combined services of high-speed Internet access and

other digital transmissions.

David Drucker is the founder and director of KaSTAR. Tom Moore,

previously vice president of Integrated Services Architecture at Cable

Television Laboratories (CableLabs), is the chief operating officer.