Satélites Mexicanos, S.A. de C.V. has entered into an Authorization to Proceed (APT) with Space Systems/Loral relating to the design and construction of a new, 64 transponder, C- and Ku-band satellite to be named Satmex 8, which will replace the Company's existing Satmex 5 satellite. Satmex paid U.S. $2.0 million for the ATP, which provies that SS/L will perform certain specified engineering and development tasks, including the procurement of schedule-critical long lead TWTAs for the Satmex 8 satellite program for up to 60 days. If a definitive construction agreement for Satmex 8 has not been executed by the close of the ATP Term, the ATP will terminate with no further monetary or performance obligations on the part of either party.

The ATP provides that SS/L will have the satellite ready for shipment to the launch site within 27 months of the execution date of the ATP. Satmex estimates the total Satmex 8 program, including construction, launching an insurance, wold amount to the neighborhood of U.S. $350 million. The design life of the new satellite would be 15 years and it will be based on the SS/L 1300 platform. Satmex 8 will provide power levels approximately equal to those of Satmex 5 and Satmex 6. The footprint will extend from the 48 contenental sates of the United States to Argentina and will include the Caribbean, all of Latin America, and the major cities of Brazil.