An anonymous director reports

VIASAT LITIGATION UPDATE

A jury in the U.S. District Court for the Southern District of California has returned a verdict in the action of ViaSat Communications Inc. against MacDonald, Dettwiler and Associates Ltd.'s subsidiary, Space Systems/Loral LLC, involving claims of patent infringement and breach of contract. The jury found that SSL infringed ViaSat patents and breached certain non-disclosure obligations to ViaSat. The jury awarded $283-million (U.S.) in damages for patent infringement and for breach of contract.

SSL will seek to overturn the verdict in posttrial motions it will file with the District Court and, if necessary, through the appeal process.

The ViaSat patents involved in this action may have some applicability to a limited number of satellite projects that are currently in SSL's factory and in its current pipeline of identified bid opportunities.

Under the purchase and sale agreement under which MDA purchased SSL from Loral Space and Communications Inc., MDA is indemnified for certain of the costs and damages, if upheld, under this action.

We seek Safe Harbor.