Cancom Reaching the 12.5 Million Channel Subscriptions: Low Rates and New Canadian and U.S. Signals Pay Off.

MISSISSAUGA, ONTARIO--(BUSINESS WIRE)--Feb. 11, 1997-- (TSE, ME SAT. ) Cancom (Canadian Satellite Communications Inc.) is pleased to announce that it now has 12.5 million channel subscriptions for its digital TV signals reaching close to four million homes in all of Canada's regions.

The rise of 22 percent in channel take since last year is due to two major factors: reduced rates and increased choice of signals.

Because it digitized its entire broadcasting operations last January 1996, Cancom has been able to offer its small cable affiliates very competitive rates for its signals. In fact, the average rate has gone from $0.70 per signal, before digitization, to $0.25 at present time.

This has been particularly beneficial for communities of less than 500 households where the rates have dropped on average by 50 percent.

Digitization has also provided a wider choice of Canadian and U.S. signals, and clients are buying in. Among the new Canadian signals, Toronto's Citytv and Montreal's TQS are hot tickets, as well as the regionalized U.S. network signals.

Already, 268,000 homes pick up the French TQS signal in the Atlantic provinces; 133,200 in Ontario; and a total of over 6,000 homes in Manitoba, Saskatchewan and B.C.

Other distant Canadian signals are equally attractive to viewers across Canada. For example, of the 231,000 homes that receive Citytv through Cancom via satellite, 166,000 are from outside Ontario.

As for the U.S. signals, Cancom built new uplinks to provide regional and time-zone-sensitive American programming out of Boston, Detroit, Minneapolis and Seattle. These signals were so well received that most of its affiliates have chosen to sign 5 to 7 year contracts and their viewers are delighted with the choices.

Cancom, Canada's leading provider of digital satellite services, trading on the Toronto and Montreal Stock Exchanges, distributes digital television and radio signals to some 2,500 Canadian small cable companies reaching 3.8 million homes, most of which are in remote communities out of reach of ordinary transmitters. Cancom also leads the field in providing digital networks design, management and services for businesses, using hybrid satellite- terrestrial systems; satellite-to-cable Internet services; mobile messaging and tracking for over 10,000 trucks; and business television with interactive distance learning for business, institutions and governments.

CONTACT: Canadian Satellite Communications Inc.

Mike McDonald, 905/272-6047

or

Canadian Satellite Communications Inc.

Patricia Dumas, 905/272-6603

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