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Report: Loral wins XM satellite contract
Posted: Tue, May 31, 2005, 6:41 AM ET (1041 GMT)
SS/Loral 1300 satellite illustration (SS/Loral) XM Satellite Radio has awarded a contract for a new satellite to Space Systems/Loral, a surprise move that is a blow to Boeing's commercial satellite unit, the Wall Street Journal reported Tuesday. The satellite, valued at approximately $200 million, is the fifth ordered by XM and will serve as a ground spare. The deal, which has yet to be publicly announced by XM or Loral, is a setback for Boeing, which had built XM's previous four satellites, three of which are in orbit. The first two XM satellites, launched in 2001, suffered from a flaw with its solar concentrators that affected several early models of the Boeing 702 satellite series. Boeing did win contracts to build two replacement satellites, one of which, XM-3, was launched earlier this year. The new XM contract award will help Space Systems/Loral as its parent company, Loral Space and Communications, plans its exit from Chapter 11 bankruptcy protection.
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