Loral Wins Rainbow Suit

January 25, 2007 World Screen

NEW YORK, January 25:
Loral Space & Communications has won a jury verdict worth $51 million in
its suit against Rainbow DBS Holdings, a subsidiary of Cablevision Systems
Corporation.

The suit stems from a 2001
deal in which Loral agreed to sell its stake in Rainbow DBS to Rainbow DBS
Holdings. Rainbow Holdings was to pay Loral $33 million when the company's
assets were sold. In March 2005,
Rainbow sold a satellite to EchoStar, but said that Loral was not entitled to
any payment. Six months later, Loral filed suit.

"We did not believe
under the terms of the contract that we were obligated to make an immediate
payment, however, the jury determined otherwise," Cablevision said in a
statement. "We are considering our options and have no further comment at
this time."