BEDMINSTER, NJ - April 8, 2003 - Loral Skynet, a subsidiary of Loral Space & Communications (NYSE: LOR), today announced the introduction of SkyReach, a group of Internet protocol (IP)-based services that provide secure private networks and high-speed Internet access using Skynet's established global infrastructure.

"SkyReach provides our customers with a single global platform for both enterprise-grade networking and high-speed Internet access," said Terry Hart, president, Loral Skynet. "SkyReach ensures that each location, however geographically or technologically challenged, has high-quality and reliable access to both its private intranets as well as the public Internet."

Using very small aperture terminal (VSAT) and fiber infrastructure, teleports and network operating centers in North America, Europe and Asia, SkyReach will deliver a wide-range of one-way and two-way IP services around the world. Flexible, scaleable and easily deployed, SkyReach gives organizations an instant global wide area network (WAN), Internet access and cost-effective IP applications.

SkyReach provides:

The highest-speed return channel: Support from 256 kbps up to 2 mbps.

Global coverage: Comprehensive intercontinental coverage is provided by Skynet's fully integrated global network of satellites and ground-based infrastructure.

Simplicity of bandwidth upgrade: A simple phone call allows customers to request specific-location or network-wide bandwidth upgrades that are fulfilled quickly by remote network management.

One-source vendor: From space segment and system design to equipment installation and ongoing maintenance, Skynet provides a one-stop shop for all elements of the network.

Using VSATs, SkyReach allows organizations to create an instant infrastructure for a network that can connect offices within a city or around the globe. Using an IP infrastructure that incorporates digital video broadcast/return channel satellite (DVB-RCS) open standards, SkyReach supports C-, Ku- and Ka-band frequencies, offers higher throughput and efficiency than current VSAT networks and allows end-users to easily interchange on-site equipment.

SkyReach supports current IP-network services including:

• Private networks
• Frame-relay/MPLS backup and remote connectivity
• Managed data services
• Thin client/ASP edge caching (at the terminal)
• Internet/intranet access
• Bandwidth on demand
• Always on broadband connectivity

SkyReach can enable new, IP-based services, including:

• Video point of sale (POS): In-store advertising and movie preview kiosks, for example
• Supervisory control and data acquisition (SCADA)
• Large-file transfer
• Videoconferencing and two-way interactive services
• Broadcast and multicast services
• Audio and video distribution (e.g., streaming, video on demand, customer kiosks)
• Voice services (e.g., voice over IP)

A pioneer in the satellite industry, Loral Skynet continues to deliver the superior service quality 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, and in combination with 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.

In addition to being the parent company of Loral Skynet, Loral Space & Communications 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.