Loral's Telstar 14/Estrela do Sul 1 Satellite Successfully Launched

Palo Alto, Calif. — January 11, 2004 — Loral's Telstar 14/Estrela do Sul 1, a powerful and flexible satellite built by Space Systems/Loral (SS/L), was successfully launched yesterday at 11:13 pm EST. The satellite, to be operated by Loral Skynet do Brasil at 63 degrees West longitude, was sent into space on a Boeing Sea Launch Zenit-3SL rocket from the Odyssey Launch Platform, positioned on the equator in the Pacific Ocean.

"The launch of Telstar 14/Estrela do Sul 1 represents an important expansion of our international fixed satellite services fleet," said Terry Hart, president, Loral Skynet. "We believe there is great growth potential in the markets - particularly Brazil - and the applications this new satellite will support. Our plans call for a further expansion of the fleet to a total of five by mid-year when we launch Telstar 18 which will serve a large portion of Asia, another growing market."

Telstar 14/Estrela do Sul 1 carries 41 high-powered Ku-band transponders with five unique and interconnecting coverage beams. The satellite will serve growing markets such as broadcast video and cable programming, Internet backbone connectivity, VSAT data and other telecommunications services.

More than fifty percent of the satellite's power will be dedicated to Brazil, providing dedicated Ku-band solutions for the Brazilian marketplace. The satellite's other beams will cover the Americas and the North Atlantic Ocean, where Connexion by Boeing™ will use the satellite to enable its Internet-to-aircraft service.

Loral Skynet do Brasil, Ltd. is the first private Brazilian satellite company to offer Ku-band satellite services and was formed primarily to address opportunities in the fixed satellite services market in Brazil and South America. The company has a ground station in Rio de Janeiro that will provide tracking, telemetry, and control and access management from in-country technical staff.

Telstar 14/Estrela do Sul 1 is based on SS/L's space-proven 1300 geostationary satellite platform, which has an excellent record of reliable operation. The 1300 is designed to achieve a long life, in this case 15 years. Its excellent station-keeping capability and orbital stability are enabled by its use of bipropellant propulsion and momentum-bias attitude control systems. A system of high-efficiency solar arrays and batteries provide uninterrupted electrical power. In all, SS/L satellites have amassed over 1,000 years of on-orbit service.

A pioneer in the satellite industry, Loral Skynet delivers the superior quality of service, range of satellite solutions and unparalleled reliability that have made it an industry leader for more than 40 years. With its fleet of satellites and its established hybrid VSAT/fiber global network infrastructure, Skynet offers a unique, single source for all broadcast, data network, Internet access and IP needs. Headquartered in Bedminster, New Jersey, Skynet is dedicated to providing secure, high-quality connectivity and communications. For more information, visit www.loralskynet.com.

Space Systems/Loral is a premier designer, manufacturer and integrator of powerful satellites and satellite systems and also provides a range of related services that include mission control operations and procurement of launch services. Based in Palo Alto, Calif., the company has an international base of commercial and governmental customers whose applications include broadband digital communications, direct-to-home broadcast, defense communications, environmental monitoring, and air traffic control. For more information, visit www.ssloral.com.

Loral Skynet and Space Systems/Loral are both subsidiaries of Loral Space & Communications (OTCBB: LRLSQ).

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This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition, Loral Space & Communications Ltd. or its representatives have made or may make forward-looking statements, orally or in writing, which may be included in, but are not limited to, various filings made by Loral with the Securities and Exchange Commission, press releases or oral statements made with the approval of an authorized executive officer of Loral. Actual results could differ materially from those projected or suggested in any forward-looking statements as a result of a wide variety of factors and conditions. These factors include those related to the filing, on July 15, 2003 by Loral and certain of its subsidiaries, of voluntary petitions for reorganization under Chapter 11 of Title 11 of the United States Code in the United States District Court for the Southern District of New York and parallel insolvency proceedings in the Supreme Court of Bermuda in which certain partners of KPMG were appointed as joint provisional liquidators. Additional factors and conditions are also described in the section of Loral's annual report on Form 10-K for the fiscal year ended December 31, 2003, entitled "Certain Factors That May Affect Future Results," and Loral's other filings with the Securities and Exchange Commission. The reader is specifically referred to these documents.