Transmission of "The Last Broadcast" Marks First National Satellite Release of a Feature-length Film

Mountain View, Calif - CyberStar L.P., a provider of broadband services developed by Loral Space & Communications, announced it will distribute via satellite "The Last Broadcast," a feature-length film created by independent filmmakers Lance Weiler and Stefan Avalos, co-founders of Wavelength Releasing LLC. A demonstration of CyberStar's newly launched service, the film will be transmitted to select movie theaters nationwide the week of October 23, marking the first digital satellite distribution of a fully digital end-to-end production.

Transmission of the nine-gigabyte MPEG-II film file via CyberStar is expected to take just a few hours - warp speed when compared to the several days it would take to send the digitized film over a T-1 line.

"We're making movie history with satellite technology," said Ron Maehl, president of CyberStar. "'The Last Broadcast' is created, distributed and projected with digital technology. The model gives voice to independent filmmakers by lowering film production costs, and could revolutionize full-length motion picture distribution by saving studios millions of dollars in physical distribution costs per movie."

CyberStar's services use existing satellites in Loral's fleet to provide high-speed multicasting and transmission of large data, audio and video files, which can be integrated into any existing network architecture. The service can be used to extend current intranets, extranets and virtual private networks, and to create personalized channels for the delivery of multimedia information and corporate training solutions anywhere in the world. CyberStar's services can be integrated seamlessly into existing Windows NT networks.

Other "Firsts"
"The Last Broadcast" was produced entirely on a hand-made desktop PC for the production cost of roughly $900. Filmmakers Weiler and Avalos created it using DV tape, VHS and 8mm, which were then transferred to their desktops and manipulated to create the special effects needed for a "home video" feel. The film is a mock documentary/murder mystery that tells the story of the deaths of a cable access TV crew searching the remote patches of New Jersey's Pine Barrens for signs of the fabled Jersey Devil.

A New Business Model For Film Distribution
The teaming of Wavelength Releasing and CyberStar suggests an alternative to the substantial cost movie studios currently incur to duplicate and ship film prints to theaters. For example, movie studios pay approximately $3,000 for each copy of a 35mm film. If one of the studio's films opens nationally in 2,500 theaters across the U.S., the studio pays more than $7.5 million in duplication costs alone. Shipping costs are extra.

"We are pleased filmmakers Lance Weiler and Stefan Avalos are using this dramatic application of our technology," said Maehl. "Through this demonstration, we've been able to create a pioneering partnership in digital filmmaking and distribution. In time, it may save the motion picture industry millions. It could also enable simultaneous global release with extraordinary efficiency."

Giving Voice To Independent Filmmakers
The explosion of new video and computer technology along with dramatically lower costs for high-end equipment has spawned an underground of independent filmmakers. Weiler and Avalos have had "The Last Broadcast" screened at film festivals in Antwerp and Rotterdam in The Netherlands, Austin, New York City and San Francisco. "The Last Broadcast" recently ended a week-long run at the County Theater in Doylestown, Pa. Until now, television and cassette distribution have been the traditional avenues of exposure to the public for these new films.

"We created 'The Last Broadcast' for $900 entirely without film, so it seemed contrary to our efforts to transfer our work to film in order to distribute it," said Lance Weiler, who with filmmaker Stefan Avalos wrote, produced, directed, shot and appears in the picture. "We looked at several technologies to go with, and not only did we conclude that CyberStar's technology was superior and provided the reliability we were seeking, but CyberStar also supports our vision and sees the tremendous potential of this application."

About Wavelength Releasing
Wavelength Releasing - a Delaware LLC, is an advanced media company formed to establish the next generation of media delivery services. By exploiting satellite and cable broadband platforms, Wavelength's applications enable the distribution and exhibition of digital film and media content across various high-bandwidth platforms serving theatrical, institutional, and consumer markets. Its goal is to establish a broadband carrier network for film and digital media. Through technology alliances with Loral's CyberStar, Texas Instruments and Digital Projection International, Wavelength will package and distribute content to regional broadband systems, homes, and theaters. The applications currently targeted include electronic cinema services, on-demand video and media delivery, and content production and co-production. Wavelength intends to disintermediate the architectures of production and distribution which exist for the film and media communities. More information may be found at www.tebweb.com/lastbroadcast.

About Cyberstar
CyberStar, based in Mountain View, Calif., was created and is managed by Loral Space & Communications Ltd. (NYSE:LOR). Alcatel, based in Paris, France is a limited partner in CyberStar. CyberStar is a leading provider of global broadband IP-multicast solutions for business environments. IP-multicast protocols form the foundation for exciting new services such as virtual multicast networks, software distribution, push-based services, Internet broadcasts, distance learning and video services. CyberStar services support high bandwidth IP-multicast solutions for intranets, extranets and virtual private networks via the Loral Skynet operated Telstar 5 satellite. These services enable businesses to deliver value-added services though their own customized multicast channels. CyberStar is a charter member of the IP Multicast Initiative. Information about CyberStar can be found on the World Wide Web at <http://www.cyberstar.com>.