REPUBLIC OF CHINA COMMISSIONS LORAL-DEVELOPED AIR TRAFFIC CONTROL SYSTEM; System Scheduled To Be Operational June 1.

TAIPEI, Taiwan--(BUSINESS WIRE)--March 6, 1996--The Civil Aeronautics Administration (CAA), Republic of China (Taiwan), today announced the commissioning of the Air Traffic Control Automation System (ATCAS), an advanced, integrated air traffic control system developed by Loral Federal Systems-Air Traffic Control, a division of Loral Corporation (NYSE:LOR).

ATCAS will be phased into operation over a three-month period and become fully operational on June 1. The transition plan calls for ATCAS to run first as a backup to the existing system, then handle live traffic during off-peak hours with the current system as backup, and gradually building up to full- time use.

Loral is under contract to provide system maintenance and support services for ATCAS during the next 14 months under a $17.6 million contract awarded by the CAA in April 1995.

A commissioning ceremony was held at the Taipei Area Control Center (TACC) and included senior government officials from the Ministry of Transportation and Communications, the CAA, and other agencies, as well as Loral and subcontractor executives.

Commenting on the project completion from New York City, Bernard L. Schwartz, Loral's chairman and chief executive officer, said, "Loral Corporation is extremely proud to be a part of this dedication marking the official commissioning of the Air Traffic Control Automation System for the Republic of China. In deploying the world's most advanced integrated system for area, terminal and tower control, the Republic of China is advancing the state of the art in air traffic control technology and is providing a critical asset for economic development in the fastgrowing Asia-Pacific region."

The CAA awarded the $51.6 million ATCAS program to Loral in 1991 to improve reliability and capacity at four CAA air traffic control centers: the TACC, which controls high altitude, en route air traffic; and the Chiang Kai-Shek, Taichung, and Kaohsiung terminal and tower control centers, which provide approach and departure services. ATCAS features fully-integrated radar and flight data processing, system monitoring and control, air traffic management functions, weather data, and digital communications for area, terminal, and tower air traffic control.

The high-availability system makes maximum use of existing procedures, hardware and software, while providing a migration path for future air traffic control enhancements. This is important because the Taipei Flight Information Region is one of the fastest growing air traffic areas in the world.

ATCAS incorporates the world's most advanced air traffic control display software, which combines rich functionality and the ability to adapt and modify the system as required. The displays and other hardware elements are commercial components selected to provide high reliability and maintainability, reduce life-cycle costs and support future upgrades.

Loral's Air Traffic Control division, based in Rockville, Md., has 40 years of experience in developing, upgrading and maintaining air traffic control systems for the United States, the United Kingdom and other international customers.

Loral Corporation, headquartered in New York City, is a hightechnology company that primarily concentrates in defense electronics, communications, space and systems integration.

CONTACT: Judy Gan

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