International Space Technologies, Inc. Debuts Its Stationary Plasma Thrusters On Loral-Built MBSat Satellite

PALO ALTO, CALIF. - June 28, 2004 — International Space Technologies, Inc. (ISTI), a developer of stationary plasma thrusters (SPT) used to keep satellites on station, today announced that its SPTs have been successfully deployed, tested and are now being used in routine on-station operations on the recently launched MBSat satellite, built by Space Systems/Loral (SS/L), Palo Alto, Calif. for Mobile Broadcasting Corporation (MBCO) of Japan and SK Telecom of Korea. ISTI is a joint venture of Fakel Experimental Design Bureau of Kaliningrad, Russia, Snecma Moteurs of France and SS/L, a subsidiary of Loral Space & Communications.

MBSat, which was successfully launched on March 13, 2004, uses SPTs for North/South station keeping maneuvers that keep a satellite in its proper position throughout the satellite's 12-year operational life. Since the satellite's launch, MBSat's SPTs have logged over 100 hours of routine orbit maneuvers.

SPTs are low thrust, Hall-effect thrusters that use available spacecraft electrical power to ionize and accelerate an inert gas, Xenon, to create the thrust to move the satellite. They are controlled and powered by specially developed and highly efficient Power Processing Units designed and manufactured by Space Systems/Loral.

"The successful in-orbit testing of MBSat's SPTs is a significant step that validates the technology's ability to reduce the amount of propellant satellites must carry to keep spacecraft in correct orbital position and attitude," said Michael Day, ISTI vice president.

"The amount of propellant saved can be more than 20 percent of the total mass of a spacecraft, freeing up volume and carrying capacity that can be used for larger, more powerful and flexible payloads," Mr. Day added. "SPT development is part of the on-going drive of the satellite industry to improve satellite performance and reliability." Two more satellites under construction at SS/L - Intelsat Americas 8 (formerly Telstar 8) and Shin Satellite's iPSTAR - also will carry the thrusters when they are launched later this year.

Together, Snecma Moteurs and SS/L have purchased more than 50 SPTs from ISTI. Snecma supplies SPTs to European satellite manufacturers and SS/L will use them on spacecraft it builds.

International Space Technologies, Inc., located in Palo Alto, Calif., is a high-technology company that develops and markets subsystems that feature space-proven Russian SPTs in combination with power electronics and propellant management systems designed and built in the United States and Europe. ISTI concentrates on marketing SPTs outside Russia. Founded in 1992, ISTI's principal investors are Fakel Experimental Design Bureau of Russia, Space Systems/Loral and Snecma Moteurs of France.

Fakel Experimental Design Bureau, located in the Kaliningrad region of Russia, is the world's leading developer of plasma propulsion devices for space applications. More than 150 SPTs of various types have flown on Russian spacecraft since 1971.

Snecma Moteurs, part of the Snecma Group, is one of the world's leading aerospace propulsion companies, and the only one to offer a virtually complete range of civil and military aircraft and rocket engines, developing just a few grams of thrust to nearly 1.5 million pounds of thrust. By drawing on these different propulsion technologies, Snecma Moteurs leverages its ability to deliver innovative solutions and develop the multidisciplinary synergies, which are critical for tomorrow's air and space power plants.

Snecma is one of the world's leading aerospace groups, with two core businesses, propulsion and equipment. It is the only corporation in the world to apply nearly all propulsion technologies (for commercial and military aircraft, helicopters, missiles, satellites and launchers). Snecma also holds European or world leadership positions in its aerospace equipment businesses. At the same time, it deploys global maintenance, repair and overhaul networks, giving customers a complete, competitive package of services. For more information, visit http://www.snecma-moteurs.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 is ISO 9001:2000 certified. For more information, visit the Space Systems/Loral Web site.

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 to transmit broadband data, Internet services and other value-added communications services. For more information, visit the Loral Space & Communications Web site.

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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.