Loral-Built Telstar 18 Reaches Proper Orbital Position; Satellite To Achieve Full 13-Year Specified Service Life

Robust Space Systems/Loral 1300 Satellite Design Allows Telstar 18 To Recover From Launch Vehicle Anomaly

NEW YORK - July 13, 2004 - Loral Space & Communications today announced that Telstar 18, launched June 28, 2004, aboard a Sea Launch Zenit-3SL rocket, has successfully reached its in-orbit testing position at 142 degrees East longitude.

During the satellite's launch, the Zenit rocket's upper stage shut down 54 seconds early and released the satellite into a low orbit. After the launch, engineers at Space Systems/Loral (SS/L) raised the spacecraft to its correct orbit using a series of carefully planned satellite maneuvers and thruster burns.

All systems on the satellite are performing nominally and in-orbit testing has begun. The satellite, which was able to use its significant stationkeeping fuel margin for the unplanned orbit-raising activities, has enough on-board fuel remaining that will allow it to exceed its specified 13-year life.

"Telstar 18's ability to reach orbit, even with a launch vehicle anomaly, showcases the robustness of SS/L's 1300 platform. Using its reserve margin, the satellite was able to correct for the launch shortfall and ensure the mission's success. SS/L's 1300 platform has a demonstrated record of exceeding our customers' requirements even in anomalous conditions," said Patrick DeWitt, President, Space Systems/Loral.

Telstar 18, which will be operated by Loral Skynet, ultimately will be located at 138 degrees East longitude where it will offer a wide variety of video and telecommunications services across Asia. The satellite carries a total of 54 active transponders: 16 high-power Ku-band transponders and 38 C-band transponders. In-orbit testing of the spacecraft will continue until its service start in August.

In addition to transmitting innovative new applications, cable programming, and direct-to-home broadcasting services, Telstar 18 is scheduled to begin hosting Skynet's SkyReach(SM) in 2005. SkyReach is Skynet's two-way IP-based networking solution. SkyReach, which is already available and in use by several customers throughout the Americas, allows organizations to create an instant infrastructure using a VSAT network, connecting offices within a city or around the globe.

In consideration for funding a portion of the satellite project's cost, APT Satellite Company Limited, Hong Kong, will initially acquire use of 68.5 percent of Telstar 18's capacity for Apstar-V services. The number of transponders used by APT will be reduced over time, ultimately to 54 percent of the satellite's capacity. For more information on APT, visit www.apstar.com.

Telstar 18 is a version of SS/L's space-proven 1300 satellite platform, which has an excellent record of reliable operation. The geostationary Telstar 18 satellite has a specified service life of 13 years and maintains stationkeeping and orbital stability by using bipropellant propulsion and momentum-bias systems. In all, SS/L satellites have amassed more than 1,100 years of on-orbit service.

A pioneer in the satellite industry, Loral Skynet continues to deliver the superior service quality and range of satellite solutions that have made it an industry leader for more than 40 years. Through the broad coverage of the Telstar satellite fleet, in combination with its hybrid VSAT/fiber global network infrastructure, Skynet is a source for all broadcast, data network, Internet access, IP and systems integration needs. Headquartered in Bedminster, New Jersey, Loral Skynet is dedicated to providing secure, high-quality connectivity and communications. For more information, visit the Loral Skynet Web site at www.loralskynet.com.

Space Systems/Loral 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, California, 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 at www.ssloral.com.

Loral Skynet and Space Systems/Loral are both subsidiaries of Loral Space & Communications (OTCBB: LRLSQ). For more information, visit the Loral Space & Communications Web site at www.loral.com.

# # #

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 the company with the Securities and Exchange Commission, press releases or oral statements made with the approval of an authorized executive officer of the company. 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 the company's annual report on Form 10-K for the fiscal year ended December 31, 2003, entitled "Commitments and Contingencies," and the company's other filings with the Securities and Exchange Commission. The reader is specifically referred to these documents.