PALO ALTO, CALIF. - November 11, 2002 - Space Systems/Loral (SS/L), a subsidiary of Loral Space & Communications (NYSE: LOR), today announced that the Optus C1 communications satellite has completed passive intermodulation (PIM) testing - the last major milestone prior to launch. SS/L has performed system level integration and testing of Optus C1 under contract from Mitsubishi Electric of Japan for SingTel Optus of Australia.

PIM testing evaluates a satellite's ability to avoid interference between operating frequency bands, ensuring that the communications payload will operate as designed. The test is important for Optus C1 because its communications payload operates in four different frequency bands - commercial services at Ku-band for Optus, and military communications at UHF, X- and Ka-bands for the Australian Department of Defence. The test was conducted at the David Florida Laboratory in Ottawa, Canada.

Optus C1 will be one of the most advanced communications satellites ever built, carrying a total of 16 antennas that will provide 18 beams across Australia, New Zealand and the Asia-Pacific region, as well as global beams covering from India to Hawaii. Optus C1 is scheduled for launch aboard an Ariane rocket in early 2003.

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Space Systems/Loral is a premier designer, manufacturer, and integrator of powerful satellites and satellite systems. SS/L also provides a range of related services, including mission control operations and procurement of launch services. Based in Palo Alto, Calif., the company has an international base of commercial and governmental customers whose applications include broadband digital communications, direct-to-home broadcast, defense communications, environmental monitoring, and air traffic control. SS/L is ISO 9001 certified. For more information, visit www.ssloral.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, 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.