Space Systems/Loral-Built MBSat Satellite Successfully Launched

Japanese-Korean joint venture to offer audio, video and multimedia data services to mobile communications users

Palo Alto, Calif. — March 13, 2004 — The MBSAT broadcast communications satellite, built by Space Systems/Loral (SS/L) for Mobile Broadcasting Corporation (MBCO) of Japan and SK Telecom of Korea, was successfully launched at 12:40 am EST today. The satellite was sent into space on an International Launch Services (ILS) Atlas III rocket from the Cape Canaveral Air Force Station.

The MBSAT satellite will be positioned at 144 degrees East longitude, where it will deliver high-quality music, video and data to mobile users in Japan and Korea through a variety of mobile terminals, including those in cars, ships, trains, handheld terminals, personal digital assistants, cellular phones and home portables. A very small antenna will be sufficient to receive these broadcast signals even inside buildings and in vehicles moving at high speeds.

"The MBSAT satellite will host one of the most cutting edge applications driving the satellite industry beyond basic broadcasting," said C. Patrick DeWitt, president, Space Systems/Loral. "SS/L has built a reliable, powerful and flexible spacecraft that will provide numerous multimedia applications in Japan and Korea for years to come."

The satellite carries two high power transponders for direct broadcasting services, with one transponder providing coverage for Japan and the other for Korea. Two additional transponders provide links to terrestrial repeater networks, which augment the satellite broadcast signal. Each transponder has an operating bandwidth of 25 MHz, allowing more than 50 channels of audio, video and data services.

The new spacecraft uses SS/L's space-proven three-axis, body-stabilized 1300 bus, tailored for the MBSAT payload. This payload combines high power phase matched transmitters with a 12-meter unfurlable reflector, providing exceptional coverage and quality of service. SS/L's satellites are designed to achieve long useful orbital life through use of bipropellant propulsion and momentum-bias systems for excellent stationkeeping and orbital stability. The MBSAT on orbit performance is further enhanced by use of Stationary Plasma Thrusters for orbital maneuvers. A system of high-efficiency solar arrays and lightweight batteries provide over 7400 watts of uninterrupted electrical power over the 12 years of satellite life.

Mobile Broadcasting Corporation was established to provide cars and mobile terminals with digital satellite broadcasting for audio, video and data services throughout Japan. MBCO's new broadcasting system was authorized by the Japanese Government and registered with the ITU. MBCO's major shareholders are Toshiba, SK Telecom, NTT Data, Mitsui Sumitomo Insurance, Toyota, Fujitsu, Nippon TV and Panasonic. So far 55 Japanese companies are MBCO partners. Several foreign companies own significant interests in the MBCO business venture while many others are currently considering investment. For more information, visit MBCO's web site at www.mbco.co.jp.

SK Telecom Co., Ltd. is Korea's leading wireless telecommunications services provider and a pioneer in the commercial development and provision of high-speed wireless data and Internet services. The company serves nearly 18 million subscribers throughout Ko-rea, the majority of whom own data-capable handsets. SK Telecom has established a new company, TU Media Corp. with more than 150 investor companies. TU Media Corp. will provide mobile digital multimedia broadcasting services throughout the Korean Peninsula. For more information, visit SK Telecom's web site at www.sktelecom.com and TU Media Corp's web site at

Space Systems/Loral, a subsidiary of Loral Space & Communications (OTCBB:LRLSQ), is a premier designer, manufacturer, and integrator of powerful satellites and satellite systems. SS/L 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 government customers whose applications include broadband digital communications, direct-to-home broadcast, defense communications, environmental monitoring, and air traffic control. SS/L satellites have amassed more than 1000 years of reliable on-orbit service. SS/L is ISO 9001:2000 certified. For more information, visit www.ssloral.com.

Loral Space & Communications is a satellite communications company. Through its Skynet subsidiary, 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 through its Space Systems/Loral subsidiary. For more information, visit www.loral.com.

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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.