The leading provider of global data, voice, video and Internet backbone services, CyberStar delivers the most effective private voice and data networks and Internet Service Provider services, via its hybrid space/terrestrial network, to more than 300 enterprises and service providers worldwide. Based in Rockville, MD, and with offices in North America, Europe and Asia, CyberStar generated 2001 data services revenues of $98 million.

Skynet is one of the world's largest and fastest-growing operators of telecommunications satellites, providing high-volume communications and data transmission services to broadcasting, cable TV, Internet and industrial companies around the world. Its fleet of seven satellites covers the globe, and three more are in late stages of construction. Skynet is based in Bedminster, NJ, and had 2001 revenues of $389 million.

Bernard L. Schwartz, chairman and chief executive officer of Loral, said, "Through both Skynet and CyberStar, Loral has pursued a strategy to broaden our capabilities in order to differentiate ourselves from the competition, add value for our customers, increase margins and better deliver new applications. Joining these two successful organizations is consistent with that strategy -- it is the most effective way to make the broadest range of networking services available to all Loral customers. We expect Loral to benefit from multiple new revenue opportunities created by the integration, from the provision of new services and from the addition of customers."

Terry J. Hart, president of Loral Skynet, said, "Skynet recently expanded its product offerings beyond its traditional transponder leasing, by establishing two additional product lines: Network Services, which provides satellite access services and shared transmission platforms, and Professional Services, which manages satellites for other operators and develops customized transmission platforms for enterprise and service provider clients. CyberStar's space and terrestrial networking expertise is effective and well established in the marketplace, making it an excellent fit. In our view, providing a platform for broadband applications is a high-growth opportunity. This integration allows Loral to combine Skynet's advanced technologies, like spot beams, with CyberStar's expertise and assets, to dramatically reduce the per-user cost of the space segment required for new broadband applications. It's a real win-win situation for Loral and for its customers."

Loral Space & Communications is a high technology company that concentrates primarily on satellite manufacturing and satellite-based 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, 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, which have been described in the section of the company's annual report on Form 10-K for the fiscal year ended December 31, 2001, 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.