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Space Systems/Loral to Build Advanced Mobile Satellite for ICO Satellite Management, LLC

ICO's 2-GHz Mobile Communications Service to Provide Ubiquitous Coverage Through Geostationary MSS Satellite and ATC Technology

PALO ALTO — April 26, 2005 — Space Systems/Loral (SS/L) today announced that it has recently signed a contract with ICO Satellite Management, LLC for the design and construction of a geostationary Mobile Satellite Services (MSS) satellite that, together with an Ancillary Terrestrial Component (ATC), will be capable of providing mobile voice and data communications throughout the United States.

"The 2-GHz mobile systems are driving a growing segment of today's satellite manufacturing industry," said Bernard L. Schwartz, chairman and CEO of Loral Space & Communications. "With ICO and other 2-GHz programs under development, SS/L has put a stake in the ground as the leading provider of these next generation mobile satellites."

ICO's GEO satellite 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 almost 1,200 years of reliable on-orbit service.

ICO is one of two companies awarded licenses by the FCC to provide satellite-based communications services with ATC technology in the 2-GHz frequency band. With its SS/L constructed geostationary satellite and ATC, ICO will provide next generation mobile voice and data services, providing complete coverage regardless of the user's location.

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.