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U.S. Bankruptcy Court Approves Loral's Disclosure Statement

Reorganization Remains On Schedule And On Plan

New York — June 1, 2005 — Loral Space & Communications, Ltd. (OTCBB: LRLSQ) today announced that the U.S. Bankruptcy Court for the Southern District of New York has approved Loral's Disclosure Statement with respect to its proposed Plan of Reorganization.

At a hearing in New York today, the Honorable Robert D. Drain ruled that, subject to the company making certain clarifications, Loral's Disclosure Statement contained adequate information for the purpose of soliciting creditor approval of Loral's Plan of Reorganization. Loral will file shortly the revised Disclosure Statement reflecting the requested clarifications and will commence mailing of the Disclosure Statement, the Plan and ballots to those creditors entitled to vote on the Plan on June 7, 2005. A hearing for the court to consider confirmation of the Plan has been scheduled for July 13, 2005.

With today's actions, Loral remains on track to emerge from chapter 11 shortly after the confirmation hearing. As planned, the company will emerge with its two business units, Loral Skynet and Space Systems/Loral, intact and with current management in place.

Upon filing, the amended Plan and Disclosure Statement will be available on Loral's website at www.loral.com. The documents also will be available via the Court's website, at www.nysb.uscourts.gov. Please note that a PACER password is required to access documents on the Bankruptcy Court's website. Loral's bankruptcy case number is 03-41710 (RDD).

Loral Space & Communications is a satellite communications company. It owns and operates a fleet of telecommunications satellites used to broadcast video entertainment programming, distribute broadband data, and provide access to Internet services and other value-added communications services. Loral also is a world-class leader in the design and manufacture of satellites and satellite systems for commercial and government applications including direct-to-home television, broadband communications, wireless telephony, weather monitoring and air traffic management.

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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.