NEW YORK - June 4, 2003 - Loral Space & Communications (NYSE:LOR) today announced that its board of directors has voted to effect a reverse split of the company's common stock at a ratio of one-for-ten, resulting in a new par value of $0.10 per share. Today's action follows approval of a reverse split by Loral shareholders at the company's annual meeting, held on May 29, 2003.

The reverse stock split will be effective after the close of business on Friday, June 13, 2003. The company's common stock will begin to trade on the New York Stock Exchange adjusted for the reverse stock split on Monday, June 16, 2003.

As of May 30, 2003, there were 439.6 million shares of Loral Space & Communications common stock outstanding. After the effect of the reverse stock split, authorized common stock will total 125 million shares, of which 43.96 million will be outstanding and 81.04 million shares available for future issuance.

Loral Space & Communications is a satellite communications company. It owns and operates a global fleet of telecommunications satellites used by television and cable networks to broadcast video entertainment programming, and by communication service providers, resellers, corporate and government customers for broadband data transmission, Internet services and other value-added communications services. Loral also is a world-class leader in the design and manufacture of satellites and satellite systems for commercial and government applications including direct-to-home television, broadband communications, wireless telephony, weather monitoring and air traffic management.

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.