Loral Reports Solar Array Deployment Delay On Telstar 14/Estrela do Sul

Spacecraft subsystems stable and corrective actions being analyzed

Palo Alto, Calif. — January 13, 2004 — Loral Space & Communications (OTCBB:LRLSQ), today said that after launch on January 10, 2004, the Telstar 14/Estrela do Sul communications satellite fully deployed its South solar array but only partially deployed its North solar array. Space Systems/Loral, the manufacturer of the satellite, is in the process of collecting data prior to the initiation of available corrective actions to complete deployment of the North array. Incomplete deployment of a solar array, if not corrected, reduces a satellite's power. The satellite is in safe mode and has more than sufficient power to maintain satellite health. Further details will be available after completion of the investigation.

The satellite, to be operated by Loral Skynet do Brasil at 63 degrees West longitude, was sent into space Saturday night on a Boeing Sea Launch Zenit-3SL rocket from the Odyssey Launch Platform, positioned on the equator in the Pacific Ocean. It is insured for partial and total losses up to a maximum of $250 million.

Loral Space & Communications is a satellite communications company. It owns and operates a global fleet of telecommunications satellites used by television and cable networks to broadcast video entertainment programming, and by communication service providers, resellers, corporate and government customers for broadband data transmission, Internet services and other value-added communications services. Loral also is a world-class leader in the design and manufacture of satellites and satellite systems for commercial and government applications including direct-to-home television, broadband communications, wireless telephony, weather monitoring and air traffic management.

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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.