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Loral-Built MTSAT-1R Multi-Functional Satellite Succesfully Launched

Will provide meteorological and Air Traffic Management (ATM) services to Asia-Pacific region

PALO ALTO, Calif. — February 26, 2005 — MTSAT-1R, built by Space Systems/Loral (SS/L) for the Japanese Civil Aviation Bureau (JCAB) and Japanese Meteorological Agency (JMA), was successfully launched today at 1:25 am PST. The satellite, a state-of-the-art, multi-functional, weather monitoring and air traffic control satellite, was sent into space aboard an H-IIA rocket from Japan's space center in Tanegashima, Japan.

From its geosynchronous orbital position at 140 degrees East longitude, MTSAT-1R will combine aeronautical services and a meteorological payload on one satellite. The satellite will provide meteorological and ATM services for users throughout the entire Asia-Pacific region - as far south as Australia and New Zealand. The satellite's meteorological payload will enter service in the second quarter of 2005 and the ATM services will be offered in early 2006.

JCAB will use MTSAT-1R L-band mobile links to provide communications and navigational services for aircraft, increasing the efficiency of aircraft flight routes, providing flexible flight profile planning, enhancing air travel safety and improving the quality of aeronautical communications.

For JMA, MTSAT-1R will gather critical weather information for users throughout the Asia-Pacific region, broadcasting cloud imagery and continuous weather data, including cloud and water vapor distributions, cloud-motion wind vector, sea surface temperature, and information on typhoons and other severe weather conditions.

MTSAT-1R is a version of SS/L's space-proven, three-axis, body-stabilized 1300 bus. SS/L's satellites are designed to achieve long, useful, orbital life through use of bi-propellant propulsion and momentum-bias systems for excellent stationkeeping and orbital stability. A system of high-efficiency solar arrays and lightweight batteries provide uninterrupted electrical power. SS/L satellites have amassed more than 1100 years of reliable on-orbit service.

MTSAT-1R uses many of the same technologies developed for the most recently deployed U.S. Geostationary Operational Environmental Satellite program, GOES, for which SS/L was the prime contractor. SS/L has manufactured five GOES satellites (I-M) under contract to the National Aeronautics and Space Administration (NASA) for delivery to the National Oceanic and Atmospheric Administration (NOAA) for operations.

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 governmental 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 1,100 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 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.

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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 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.