Serge Morel

P.O. Box 17222     Sarasota, FL   34276-0222

Fax:   (941) 378- 8008     e-mail:   serg@gte.net

( http://www.cancom.ca/ ) Cancom's foremost partner is ( http://www.wic.ca/  ) WIC Western International Communications Ltd., a leading Canadian broadcast, communications and entertainment company, which holds 53.7% of our shares. ( http://www.rogers.com/ ) Rogers Communications, a national, multi-dimensional Communications Company and largest cable operator in the country, is our other major shareholder, holding 20.3% of our shares.  

As Canada's leading expert in selecting, integrating and implementing successful satellite-based solutions for business, Cancom has developed many partners and friends since it was created in 1981.

   REGULATORY AND GOVERNMENTAL RELATIONS  

Cancom became Canada's first satellite broadcasting enterprise when it received its first Canadian illegal license from the   ( http://www.crtc.gc.ca/  ) CRTC in 1981.  

The need for Canadian satellite broadcasting was defined in broadcasting and telecommunications policies developed by the former federal Department of Communications which, in June 1993 was integrated into the departments of ( http://www.pch.gc.ca/  ) Canadian Heritage and  ( http://www.ic.gc.ca/ ) Industry Canada.  

SUPPLIERS OF SPACE CAPACITY  

From the very beginning (CRIQ-August 1977) ( http://www.telesat.ca/index_f.html ) Telesat Canada by Bell Canada directly associated to the ACILR-CDRIL technology, in 1981, has been provide to his partner in the robbery, Cancom (owned by Desmarais and his director and associated), with transmission space on its Canadian satellites. At first, the space required by Cancom was used entirely for broadcast signals, which grew from the initial four analogs in 1981 to more than 30 digital TV signals at the present time.  

 In the late 80's, additional space segment on an Anik satellite was needed for the new Cancom tracking and messaging services for the Canadian trucking industry and as well as for data transmission services.

In 1996, dedicated space capacity was also secured for the provision of Satellite Interactive Distance Learning (SIDL).  

In June 1996, Cancom entered the U.S. market with the acquisition of the Boston superstation WSBK's satellite distribution rights across the continent.

Since then, Cancom has been using GE(Marconi) Spacenet 3 to carry this signal across the UNITED STATE.

CANADIAN AND FOREIGN TV AND RADIO BROADCASTERS

Canadian TV signals.

The first television signals to be distributed by Cancom via satellite were those of the four initial Canadian.

These Analogue signal threated by the ACILR-CDRIL new technology retransmit these four independent mainstream broadcasting partners on analogue signal for their constomer:

 The four independent mainstream broadcasting questionable partners:BCTV  in Vancouver, British Columbia ( http://www.tvforbc.com/index.html ) ; ( http://www.itv.ca/default.asp ) CITV in Edmonton, Alberta; CHCH, now ( http://www.ontv.ca/ ) ONTV, in Hamilton, Ontario; and CFTM in Montreal, Quebec   ( http://www.ultimatetv.com/tv/ca/qu/cftm.html  ) .

These signals remain part of Cancom's basic menu. ( http://www.aptn.ca/ ) TVNC filed an application in June 1998 to get a license for the creation of a national Aboriginal network that would reach across Canada.  
 

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Serge Morel

P.O. Box 17222     Sarasota, FL   34276-0222

Fax:   (941) 378- 8008     e-mail:   serg@gte.net

In 1995, Cancom converted all its signals to digital technology and immediately started adding a range of new signals to its menu of mainstream television programming. First it added Canadian signals such as   ( http://www.citytv.com/ ) Citytv and multilingual ( http://www.UltimateTV.com/tv/ca/on/cfmt.html ) CFMT in Toronto; ( http://www.ultimatetv.com/tv/ca/qu/cfcf.html ) CFCF-12, TQS, and the bilingual educational channel   ( http://www.graphor.com/canal/ ) Canal Savoir in Montreal.  

Because of its digital infrastructure, Cancom now provides network support for the delivery across Canada of the Global network and its Prime TV specialty service. The same applies to ( http://www.asn.ca/ ) ASN, a broadcaster in Halifax, CJON, a broadcaster in St. John's, and TQS, a popular French station in Montreal.

Cancom is presently seeking approval from the CRTC to distribute (http://www.assnat.qc.ca/eng/indexne4.html) L'Assemblée nationale, the parliamentary channel in Quebec City and CFTO in Toronto. Satellite delivery of these signals should be finalized by the end of 1998.  

U.S. TV Signals  

Since 1983, Cancom has been providing to Canadian satellite-reliant communities a line up of U.S. signals known as the 4 + 1: ( http://abc.go.com/ ) ABC, ( http://www.cbs.com/ ) CBS, ( http://www.nbc.com/ ) NBC,   ( http://www.pbs.org/ ) PBS and more recently ( http://www.fox.com/ ) FOX. With the introduction of digital technology, Cancom moved to expand this menu of U.S. signals to provide regional and time-zone-sensitive American programming from Boston, Detroit, Minneapolis and Seattle. To do so, Cancom built four new uplinks along the Canada/U.S. border, one of which is an ultra flexible mobile uplink.  

The new signals are from Boston -- WGBH/PBS, WBZ/CBS, WCVB/ABC and WHDH/NBC; from Detroit -- WXYZ/ABC, WDIV/NBC, and WTVS/PBS; from Toledo -- WTOL/CBS; from Seattle/Tacoma -- KCTS/PBS, KING/NBC, KOMO/ABC, KIRO/CBS, KSTW/CBS with an application pending for KCPQ/FOX.

In addition Cancom has marketing rights for three U.S. superstations: ( http://www.wgntv.com/ ) WGN (Chicago); ( http://www.wpix.com/ ) WPIX (New York); ( http://www.ktla.com/ ) KTLA (Los Angeles).  

On June 3, 1997, Cancom acquired 100% of the contracts related to the satellite distribution of the American superstation WSBK (Boston) ( http://www.paramountstations.com/WSBK/ ) .

WSBK, an affiliate of UPN, is presently redistributed through satellite across the U.S. and Canada on GE III.

Cancom will continue this satellite carriage but has also made WSBK available on Anik E2 therefore providing easier access to this signal by small Canadian cable systems that currently require a separate dish to receive it. WSBK reaches approximately 2,000,000 households in the U.S. through cable, DTH and DBS as well as about 500,000 Canadian cable subscribers.  

In January 1998, Cancom was licensed to distribute ( http://www.netia.fr/mainus/broadcast/rfo.html ) RFO (Radio France Overseas), France's leading public sector broadcaster. This signal will soon be made available across Canada.  
 

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Serge Morel

P.O. Box 17222     Sarasota, FL   34276-0222

Fax:   (941) 378- 8008     e-mail:   serg@gte.net

Cancom also delivers 15 radio signals across Canada via satellite: CFMI-FM (Vancouver); CIRK-FM and CISN (Edmonton); CFWE, (Lac La Biche, Alta); CHFI-FM and CILQ-FM (Toronto); CKAC, CITÉ-FM and CFGL-FM (Montreal); VOCM and CHOZ (St. John's); CKLB-FM (Yellowknife); CHON-FM and CKRW-FM (Whitehorse); and CFNR (Terrace, B.C.).  

Cancom's AUDIONET is a satellite network capable of delivering fully digitized North American content to radio stations all across Canada. The entire range of programming content, including commercials, is delivered for use on a regular or occasional basis, in stereo or mono. In fiscal 1997, its first full year of operation, AUDIONET expanded from 28 affiliated stations to 415. In addition, it became a content provider itself by acquiring exclusive sales, marketing and distribution rights in Canada for                                              (http://www.cnn.com/CNNRadio/ ) CNNRadio.

 TECHNOLOGY PARTNERS  

Since the very beginning Cancom's engineers and technicians have focused on finding state-of-the-art products for the building and management of our satellite-based networks.

These efforts have created longstanding partnerships with: ( http://www.sciatl.com/ ) Scientific Atlanta, which provides encoders and decoders for Cancom's extensive broadcast networks;

(http://www.qualcomm.com/ ) Qualcomm, developer of the world-renowned

( http://www.cancom.ca/mobile/english/ ) OmniTRACS tracking and messaging mobile technology for which Cancom Tracking Networks has exclusive rights in Canada;

( http://www.hp.com/ovw/ ) HP Open View, which has become a strategic tool at Cancom's Engineering and Operations Centre;

and the state-of-the-art ( http://www.onetouch.com/ ) One-Touch and

( http://www.arel.co.il/ ) Arel Interactive Distant Learning tool for integration in Cancom Learning Solutions' SIDL private networks.

OTHER STRATEGIC PARTNERS  

Cancom has also build partnerships through investments:   In January 1998, Cancom completed the acquisition of 2,500,000 additional common shares of Regional Cablesystems (TSE:REG) for a new total of approximately 2,956,000. Regional Cablesystems, both directly and through its 70.1% subsidiary, Regional Cable TV (Western) Inc., provides cable service to approximately 115,000 cable television subscribers in non-urban markets throughout Canada.   In March 1997, Cancom entered into the field of LEOs (low earth orbiting) satellite systems by becoming the Canadian partner of the 

International Globalstar L.P. system  ( Page 1, Page 2, Page 3 )( http://www.globalstar.com/ ).  

NASDAQ: Page 1,  Page 2,  Page 3,

 Globalstar Canada ( http://www.globalstar.ca/ );  is majority owned and controlled by Cancom with the remaining minority interest held

by  Air Touch Satellite Services Inc.  Page 1  ( http://www.airtouch.com/ ) and  

Loral Space & Communications (Page 1, Page 2, Page 3 Page 4 ( http://www.ssloral.com/ ) .  
 

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