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SPACE SYSTEMS/LORAL-BUILT SPAINSAT COMMUNICATIONS SATELLITE SUCCESSFULLY LAUNCHED

HISDESAT and XTAR to Provide Dedicated X-Band and Ka-Band Services to Spanish, U.S. and Allied Governments

Palo Alto, CA - March 11, 2006 - Space Systems/Loral (SS/L), a subsidiary of Loral Space & Communications (NASDAQ: LORL), today announced that the SPAINSAT satellite, manufactured for HISDESAT Servicios Estrategicos S.A. (HISDESAT) of Madrid, was successfully launched today at 2:32 pm Pacific Standard Time. The satellite was lofted into space aboard an Ariane 5 ECA rocket from Arianespace's spaceport in Kourou, French Guiana.

"The completion and launch of SPAINSAT is the culmination of a successful partnership between SS/L, HISDESAT, XTAR and the Spanish aerospace industry," said Patrick DeWitt, president, Space Systems/Loral. "Government demand for bandwidth has clearly increased in recent years and with SPAINSAT, SS/L has leveraged its successful and reliable 1300 commercial satellite platform for use as a powerful communications system, able to provide robust government and military satellite services."

SPAINSAT carries a total of 13 wide-band, high-power X-band transponders. The satellite also carries a specially designed Ka-band payload uniquely tailored to provide services to the Spanish Ministry of Defense. SPAINSAT has a specified service life of 15 years and will maintain station-keeping and orbital stability by using bipropellant propulsion and momentum-bias control systems.

From its 30 degrees West longitude orbital location, SPAINSAT's coverage area encompasses a region extending from Denver in the United States to the South American and African continents and across the Atlantic to the Middle East. It carries a number of steerable spot beams that can be positioned anywhere within the satellite's footprint. SPAINSAT is designed to be compatible with existing X-band terminals, including dishes under 2.4 meters.

"SPAINSAT is the first satellite dedicated to Spain's ever-expanding need for satellite communications services," said Miguel Angel Primo, chief operating officer, HISDESAT. "With SPAINSAT, HISDESAT and its partner XTAR will be able to provide an expanded array of X-band services to the Spanish Ministry of Defense, the United States and other allied countries. HISDESAT will also provide Spain with a dedicated Ka-band platform on SPAINSAT for developing new, enhanced communications capabilities."

XTAR, LLC, Rockville, Md., will lease eight 72 MHz X-band transponders on SPAINSAT, to be designated XTAR-LANT, in order to provide its customers in the U.S. and abroad with additional X-band services and greater flexibility. XTAR currently operates its own XTAR-EUR satellite, providing X-band services from 29 degrees East longitude. XTAR is a joint venture between HISDESAT and Loral Space & Communications. For more information, visit www.xtarllc.com.

HISDESAT Servicios Estrategicos S.A. is a Spanish company headquartered in Madrid. HISDESAT's aims are the acquisition, operation and commercialization of government-oriented space systems, beginning with satellite communications in the X- and Ka-band frequencies. HISDESAT is owned jointly by HISPASAT, S.A., the Spanish commercial satellite services company, INSA and the leaders of Spain 's space industries: EADS-CASA Espacio, INDRA and SENER. For more information, visit www.hisdesat.es.

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, 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 1,200 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. 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 Inc. 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 from time to time 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. Many of these factors and conditions are also described in the section of the annual report on Form 10-K for the fiscal year ended December 31, 2004 of Loral Space & Communications Ltd. (the predecessor registrant to the company) ("Ltd."), entitled "Commitments and Contingencies," and the company's and Ltd.'s other filings with the Securities and Exchange Commission. The reader is specifically referred to these documents.