BEDMINSTER, NJ - January 29, 2002 - Loral Skynet, a subsidiary of Loral Space & Communications (NYSE:LOR), today announced that GlobeCast, the broadcast services division of France Telecom, has leased additional Telstar 5 Ku-band capacity to expand delivery of its Direct-to-Home World Television platform and its Enterprise Television & IP Multicast platform throughout North America.

"GlobeCast has been one of the leading forces in the industry to develop a strong marketplace for foreign broadcast networks across North America, helping to position Telstar 5 as the key satellite for world television programming in America," said Terry Hart, president, Loral Skynet. "Skynet is pleased to continue working with GlobeCast on many of its unique value-added services, including television, radio, Internet content distribution and satellite newsgathering."

Launched in 1997, GlobeCast's DTH World Television Service on Telstar 5 has grown to become one of America's leading independent direct-to-home platforms for the delivery of its customers' world television and other niche programming. From its international teleports in Los Angeles and New York, GlobeCast transmits more than 37 television and radio channels on Telstar 5, featuring leading networks from Europe, the Middle East, Asia and America including EuroNews, Deutsche Welle's German TV, SPT-Portugal, Abu Dhabi Television, ANA/MBC, KISB-Korea and Thai TV 5, among others. A complete world channel lineup can be found on GlobeCast's DTH consumer web site at www.globecastwtv.com.

In addition, GlobeCast announced that it will launch a separate C-band platform on Telstar 5 to accommodate domestic and international transmission services from the 2002 Winter Olympics in Salt Lake City. GlobeCast will operate a broadcast base in Salt Lake City to transmit signals originating from GlobeCast's three transmission points and stand-up locations in downtown Salt Lake City and Park City to broadcasters for retransmission around the world.

With this agreement, GlobeCast now has four Ku-Band Telstar 5 transponders in its digital inventory, providing capacity to expand the company's successful DTH World Television Service, as well as enterprise applications including business television and IP multicasting for satellite streaming and file transfer services.

Loral Skynet's Telstar 5 satellite, manufactured by Space Systems/Loral, carries a total of 52 transponders -- 24 at C-band and 28 at Ku-band. Located at 97 degrees West longitude, Telstar 5 provides coverage of the continental United States, Hawaii, Alaska, Puerto Rico and the U. S. Virgin Islands and hosts a variety of broadcast video, data, business television, Internet, DTH, and digital data applications.

About GlobeCast

GlobeCast - the broadcast services division of France Telecom - is the world leader in professional satellite transmission and production services for broadcast, enterprise and Internet content distribution.

Operating satellite transmission centers in Europe, the Americas, Asia, Australia, the Middle East and Africa, GlobeCast offers a complete range of satellite broadcast solutions, including TV channel distribution, secure satellite Internet delivery, satellite newsgathering, direct-to-home distribution, sports programming backhaul, program origination, studio production, special events mobile production, language conversion and audio distribution.

GlobeCast America - the regional GlobeCast unit serving North and Latin America - provides access to the company's global assets through its international teleports and sales offices in Miami, Los Angeles, New York, Washington, D.C., Dallas and Salt Lake City.

About Loral Skynet

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.