NEW YORK - January 17, 2002 - Loral Skynet, a subsidiary of Loral Space & Communications (NYSE:LOR), today announced that it has signed a long-term renewal agreement with American Broadcasting Companies, Inc. (ABC) to deliver its digital satellite news gathering (SNG) on Skynet's Telstar 4 satellite.

"The long partnership between Loral Skynet and ABC has helped to pioneer the SNG effort throughout the industry," said Terry Hart, president of Loral Skynet. "We are pleased that ABC is extending its relationship with us and look forward to jointly developing further innovations and efficiencies in the cutting-edge technologies of digital SNG."

Loral Skynet provides ABC News with a customized digital SNG service featuring part-time transponder service, satellite access management, and a team of dedicated technicians that monitors and controls the service from Skynet's Hawley, Pennsylvania earth station.

Skynet's digital SNG service uses an open network standard that enables broadcasters, affiliates and independent news providers to transmit up to 5 times more simultaneous feeds on a single transponder than has been previously possible using standard analog transmissions.

ABC News' digital news gathering application operates on Telstar 4, located at 89 degrees West longitude. The satellite carries twenty-four 36 MHz C-band transponders and sixteen 54 MHz Ku-band transponders that cover the continental US, Alaska, Hawaii, Puerto Rico, US Virgin Islands, and southern Canada. Telstar 4 is also host to a robust broadcast and syndication neighborhood, and distance learning and data applications.

Loral Skynet of Bedminster, N.J. is a leading satellite communications services provider that operates the Telstar satellite fleet. The fleet provides C-band and Ku-band coverage over the continental United States, Hawaii, Alaska, Puerto Rico, and the Caribbean, as well as Europe, Asia, South America, northern Africa and South Africa. Customers lease transponder capacity to distribute network television programming, to collect live video feeds for the reporting of news and events, to provide Internet connectivity to Internet Service Providers and other users, and to offer direct-to-home and pay-per-view programming, distance learning, educational, and other business television services. Loral Skynet also provides technical consulting, as well as tracking, telemetry, and control of satellite fleets for a wide variety of customers. For more information, visit Loral Skynet's web site at www.loralskynet.com.

Loral Space & Communications is a high technology company that concentrates primarily on satellite manufacturing and satellite-based services, including broadcast transponder leasing and value added services, domestic and international corporate data networks, broadband data transmission, content and Internet services.

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, from time to time, Loral Space & Communications Ltd. or its representatives have made or may make forward-looking statements, orally or in writing. Such forward-looking statements 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 and conditions have been described in the section of the company's annual report on Form 10-K for the fiscal year ended December 31, 2000, entitled "Certain Factors That May Affect Future Results," and the company's other filings with the Securities and Exchange Commission. The reader is specifically referred to these documents regarding the factors and conditions that may affect future results.