ROCKVILLE, MD - October 3, 2002 - Loral Space & Communications (NYSE: LOR) today announced that its CyberStar subsidiary has signed a three-year contract with one of Latin America's leading educational institutions, the University of San Martin, in Bogotá, Colombia. CyberStar will provide the University with a flexible, pan-regional network that integrates broadband Internet access, videoconferencing, telephony and data transfer capabilities for campuses throughout Colombia, Peru, Panama, Aruba and Brazil. Loral CyberStar recently was combined with Loral's flagship fixed satellite services provider, Loral Skynet.

The University of San Martin's network uses two integrated services: CyberStar's Virtual Integrated Sky Network (VISN™) - a fully meshed very small aperture terminal (VSAT) system that will provide voice, data and video services- and WorldCast, CyberStar's flexible one-way or two-way connection to the Internet backbone.

"CyberStar provides us with the two essential components we need, an IP data infrastructure that integrates telephony and video capabilities, with cost-effective coverage over a wide region," said Mariano Alvear Sofan, president, University of San Martin. "To achieve our educational mission it is essential for the university to offer high-quality instruction and facilities everywhere, not just at the home campus in Bogotá. We needed a system that could offer real-time videoconferencing, high-speed access to the Internet backbone and reliable telephony services, and CyberStar offers us all of this."

To meet the diverse voice and data needs of the University's 21-site network, CyberStar has combined two of its VSAT services onto a single, comprehensive platform. The VISN/WorldCast network will provide:

• Internal communications for University administration needs.
• Internet access for students and staff.
• Videoconferencing to provide for one and two-way broadcasts to remote sites.
• Private voice communications network within the University capable of supporting simultaneous voice calls.

"Initially, we will offer point-to-point videoconferencing between an instructor and a class at a remote site or between administrative conference rooms," said George Franco Cendales, director, information technology, University of San Martin. "However, we anticipate that this system will also be used at our affiliated health clinics to distribute the latest knowledge and techniques to our medical staff so that they can better support the local population's health needs."

"For organizations that need fully meshed phone services, videoconferencing and Web access, CyberStar's unique ability to offer both over one network at a price less than a terrestrial system is a very attractive proposition," said Roy Collins, vice president and general manager, Americas sales, CyberStar. "As part of Loral Skynet, CyberStar will now have even greater resources to offer unique solutions for reliable voice, videoconference services and robust Internet access to customers with remote sites."

With the integration of Loral CyberStar and Loral Skynet in September 2002, Loral is able to offer its customers a complete portfolio of satellite transponder, networking and professional services from one source. Using CyberStar'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. 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. The Telstar fleet of seven satellites covers the globe and will expand with the launch of four more satellites that are currently under construction.

Loral Space & Communications is a high technology company that concentrates primarily on satellite manufacturing and satellite-based services, including broadcast transponder leasing, domestic and international corporate data networks, Internet services, and broadband data services including business television, distance learning and video to the desktop.

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.