BEDMINSTER, NJ - April 2, 2003 - Loral Skynet, a subsidiary of Loral Space & Communications (NYSE: LOR), today announced it has completed the integration of its business activities with Loral CyberStar, allowing the new Loral Skynet to offer its customers a combination of fixed satellite and network services from a single source.

In September 2002, Loral announced that it would combine the activities of its Skynet and CyberStar units to respond to customer demands for global networking and more end-to-end solutions from a single provider.

"Integrating fixed satellite services with a robust networking and engineering capability is key to success in our industry," said Terry Hart, president, Loral Skynet. "The combination of Skynet and CyberStar allows the new Loral Skynet to offer complete satellite solutions. We look forward to working with our customers on new networking opportunities, in addition to continuing our heritage satellite service business."

As part of the integration, Loral Skynet has named Robert A. Hedinger to the position of executive vice president of sales, marketing and client services. Reporting to Terry Hart, Mr. Hedinger is responsible for Skynet's sales and marketing strategy and will lead a team of professionals across Skynet's three product lines - Satellite Services, Network Services and Professional Services. Mr. Hedinger was previously Skynet's executive vice president of business development.

"The new Skynet is responsive and market driven, taking advantage of our established solutions for both our satellite services and our network solutions through a streamlined organization," said Hedinger. "We are excited about Skynet's combined business and expect to capitalize on new opportunities as we launch three new satellites into key global markets and continue to develop our network services platform."

In addition to its core fixed satellite services business, Loral Skynet offers both Network Services and Professional Services.

Skynet Network Services uses innovative VSAT and terrestrial technology to distribute data, voice and video anywhere in the world. The Network Services portfolio includes:

• Mesh voice/data networks
• IP and MPEG video services
• Global WAN connectivity
• Multicast services
• Videoconferencing
• Internet backbone connectivity
• Tier 2 ISP services
• Corporate communications
• E-Learning and training systems
• Large-file distribution
• Teleport services

Skynet Professional Services, a team of world-class network architects, engineers, program managers and satellite operations professionals, provide customized services that satisfy unique customer needs in deploying satellites and network services. This includes:

• Satellite operational services (TT&C)
• Network architecture design
• Regulatory issue management
• Unique, customized distribution solutions, such as "centralcasting"

To learn more about these product lines, visit Loral Skynet's booth at the Las Vegas Convention Center (number N1450) during NAB 2003 in Las Vegas from April 7-10, 2003.

A pioneer in the satellite industry, Loral Skynet continues to deliver the superior quality of service and range of satellite solutions that have made it an industry leader for more than 40 years. Through the broad coverage of the Telstar and Loral Global Alliance satellite fleets, its established hybrid VSAT/fiber global network infrastructure, Skynet offers a unique, single source for all broadcast, data network, Internet access, IP and systems integration needs. Headquartered in Bedminster, New Jersey, Skynet is dedicated to providing secure, high-quality connectivity and communications. For more information, visit www.loralskynet.com.

Loral Space & Communications is a satellite communications company. In addition to its Skynet satellite services business, Loral also is a world-class leader in the design and manufacture of satellites and satellite systems for commercial and government applications through its Space Systems/Loral subsidiary.

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, 2002, 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.