SMS's broadband Internet package is based on the DVB/RCS (digital video broadcast/return channel via satellite) platform, an open standard technology for broadband distribution. Using Telstar 12, SMS's expanded DVB/RCS platform will provide an immediate solution for corporations that demand high quality two-way IP data networking and last-mile connectivity.

According to Tim Whittingham, managing director of Satellite Media Services, "The standardization of the DVB/RCS technology could not have come at a better time for SMS. DVB/RCS is a significant milestone in the development of satellite technology, and the SMS/Loral Skynet relationship will exploit this important application that combines high-power satellite capacity with the best ground infrastructure and IP data networking skills available today."

Telstar 12, located at 15 degrees West longitude, covers North America as far west as Atlanta, most of South America, Europe, the United Arab Emirates and South Africa. The satellite provides trans-oceanic service for video broadcast and business television, high-speed Internet access and private multimedia services.

Loral Skynet of Bedminster, New Jersey is a leading satellite communications services provider that offers its customers a complete portfolio of satellite transponder, networking and professional services from one source. Skynet operates one of the world's largest and fastest-growing fleets of telecommunications satellites, providing high-volume communications and data transmission services to broadcasting, cable TV, Internet and industrial companies around the world. Through its CyberStar unit's global IP multicast network and fiber assets, Skynet provides high-quality data, voice, video and Internet backbone connectivity services to multinational enterprises and service providers, including carriers and Internet service providers. The Telstar fleet of seven satellites covers the globe and will expand with the launch of four more satellites that are currently under construction. For more information on Loral Skynet and the Telstar fleet, visit www.loralskynet.com.

Satellite Media Services (SMS) has been a licensed UK private satellite operator since 1987. SMS owns gigabit connectivity to London's facilities houses, strategically located points of presence (POPs) and a multi-functional and highly secure teleport. The company is a leading provider of broadband and IP solutions - providing broadcast, data, voice over IP and Internet backbone services to an established customer base throughout Europe, the Middle East and Asia. SMS integrates terrestrial networks, teleport infrastructure, satellite capacity and service skills into predefined and competitively priced communications solutions. For more information, visit www.sms-internet.net.

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