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Space Systems/Loral Begins Construction of TerreStar Satellite System

SS/L Takes MSS Industry Lead with Multiple 2 GHz Programs Under Development

PALO ALTO — April 11, 2005 — Space Systems/Loral (SS/L) today announced that it has completed design reviews of TerreStar Networks, Inc.'s geostationary satellite, TerreStar-1, and entered into the construction phase of the Mobile Satellite Services (MSS) program. The TerreStar satellite, together with an Ancillary Terrestrial Component (ATC), is designed to provide next-generation, 2-GHz mobile voice and data communications, monitoring and messaging services throughout the United States.

Scheduled for delivery in 2007, TerreStar-1 has a service life of 15 years and will carry a state-of-the-art MSS payload featuring a large unfurlable reflector. The satellite will be capable of generating hundreds of spot beams covering the Continental U.S., Canada, Alaska, Hawaii, Puerto Rico and the U.S. Virgin Islands. SS/L's contract with TerreStar also includes an option for construction of a second satellite, TerreStar-2.

An FCC decision earlier this year opened the door for TerreStar Networks, and other select satellite operators, to incorporate an ATC with its satellite-delivered communications service. The previously unavailable 2-GHz frequency band will allow MSS operators to provide advanced mobile voice and data services. These services will be enhanced by ATC technology, which allows for coverage in areas where a satellite's signal could be blocked, including urban canyons, dense forest or other areas out of the satellite's line-of-sight.

"SS/L has taken a leadership position in the development of 2-GHz MSS satellites, which are at the heart of next generation mobile services," said C. Patrick DeWitt, president, Space Systems/Loral. "Together with our experience on other 2-GHz systems, the TerreStar award positions SS/L as the industry leader in the design and development of some of the world's most advanced mobile communication systems."

TerreStar-1 is based on SS/L's space-proven 1300 platform, which has an excellent record of reliable operation. Its high efficiency solar arrays and lightweight batteries are designed to provide uninterrupted electrical power. In all, SS/L satellites have amassed more than 1,100 years of reliable on-orbit service.

Headquartered in McLean, Va., TerreStar Networks Inc. is an emerging provider of advanced mobile satellite services in North America with plans to develop, build and operate an innovative and spectrum-efficient spot beam satellite network in the 2 GHz frequency band. The TerreStar investor group includes Motient Corporation (OTC Pink Sheets: MNCP), SkyTerra Communications (OTC BB: SKYT), TMI Communications, Columbia Capital and Spectrum Equity Investors. For more information, visit TerreStar Networks on the web at www.terrestarnetworks.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 governmental 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 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. For more information, visit Loral's web site at 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 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, 2004, entitled "Commitments and Contingencies," and the company's other filings with the Securities and Exchange Commission. The reader is specifically referred to these documents.