Space Systems/Loral-Built MBSat Satellite Successfully Completes In-Orbit Testing

Japanese-Korean joint venture accepts delivery on orbit of advanced mobile broadcast satellite for innovative mobile services

Palo Alto, Calif. — April 27, 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, has successfully completed its in-orbit testing and was officially delivered on orbit today. The satellite was formally accepted during a signing ceremony at MBCO's Tokyo headquarters.

After its successful launch on March 13, 2004, SS/L engineers put the MBSAT satellite through a rigorous test and check out program and maneuvered the spacecraft to its final orbital location at 144 degrees East longitude. Engineers also successfully demonstrated the transmission of broadcast signals through the satellite to small handheld user terminals.

The MBSAT platform incorporates a number of innovative technology applications with SS/L's highly reliable and space-proven 1300 bus:

  • A state-of-the-art electric propulsion system has been incorporated for orbital stationkeeping maneuvers. This system, using flight-proven Stationary Plasma Thrusters (SPT), significantly extends the satellite's useful lifetime.

  • A 12-meter unfurlable reflector provides exceptional coverage and quality of service. The reflector, built by Northrop Grumman Astro Aerospace, is a key component of SS/L's proprietary S-band antenna system. Signal verification tests confirmed accurate deployment of the reflector with excellent correlation between measured antenna performance and pre-launch predictions.

  • Satellite pointing accuracy and overall performance has been enhanced by an improved attitude control system based on four active reaction wheels and Ring Laser Gyros for three-axis body-stabilization.

  • Next generation triple junction gallium arsenide solar cells provide an efficiency improvement of 50 percent over previous generation silicon solar cells.

"The successful delivery of MBSAT has again demonstrated SS/L's ability to combine innovation with flight-proven heritage to satisfy our customer's unique requirements," said C. Patrick DeWitt, president, Space Systems/Loral. "The MBSAT satellite will serve as a model platform for similar direct-to-user services around the world."

The MBSAT payload consists of four high power transponders for direct broadcast services and terrestrial repeater networks covering Japan and Korea. The satellite 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 as well as 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.

Technicians at Space Systems/Loral's spacecraft assembly facility in Palo
Alto, Calif., prepare the MBSAT satellite for shipment to Cape Canaveral Air
Force Station, Fla., for launch on an International Launch Services (ILS) Atlas
III rocket. The satellite, built for MBCO of Japan and SK Telecom of Korea,
was launched March 13, 2004 and will deliver high quality music, video and
data to consumers in Japan and Korea through a variety of hand-held and
other mobile terminals.

An artists rendering of the MBSAT satellite built by Space Systems/Loral, Palo
Alto, Calif., for MBCO of Japan and SK Telecom of Korea.

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, Sharp, Toyota, Yokogawa, Matsushita, NTT Data, Yusen, Nippon TV, Mitsui Sumitomo Insurance, Fujitsu, and Panasonic. So far 77 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 Korea, 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 www.tu4u.com.

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. In addition to Space Systems/Loral, through its Loral Skynet subsidiary, Loral owns and operates a fleet of telecommunications satellites used to broadcast video entertainment programming, and for broadband data transmission, Internet services and other value-added communications services. 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.