BEDMINSTER, NJ - August 4, 2003 - Loral Skynet, a subsidiary of Loral Space & Communications (OTC BB: LRLSQ), today announced that NBC News has been using the Telstar 12 satellite to transmit news programming from the Persian Gulf region to the United States, covering the war and related activities in Iraq. NBC News was able to uplink from over 24 simultaneous program sources originating from locations including Baghdad, Kuwait City, Doha, Qatar, Amman, Jordan and Tel Aviv. NBC News also used Telstar 12 as the second link for signals originating from the Indian Ocean region during the conflict in Afghanistan earlier in the year.

"The team at Skynet's satellite operations center makes a terrific partner by providing critical technical support," said Joe Raznik, senior engineering manager, NBC Satellite Operations. "During the chaos of the Iraq war, the patience and skills of Skynet's engineers were critical in helping our crews, who were constantly on the move transmitting breaking news back to the United States."

According to Terry Hart, president, Loral Skynet, "Telstar 12 has become the ideal choice for news organizations needing access to or from the Middle East. At 15° West longitude, Telstar 12's large Ku-band footprint penetrates deep into this region and provides single-hop connectivity from the U.S. to as far east as Saudi-Arabia."

NBC News has frequently used Telstar 12 to transmit video among Europe, the Middle East and the northern coast of Africa. The first events covered by NBC News via Telstar 12 were the turn of the century celebrations in 2000. NBC News foreign correspondents reported to the U.S. live from locations within one of the largest Ku-band footprints available, including Moscow, Jerusalem, Rome, Paris and London. Telstar 12 covers the eastern part of the US as far west as Atlanta, most of South America, South Africa, Europe and as far east as Moscow, and the United Arab Emirates. The satellite provides transoceanic service for video broadcast, satellite news gathering, business television, high-speed Internet access and private networking services.

A pioneer in the satellite industry, Loral Skynet continues to deliver the superior quality of service, range of satellite solutions and unparalleled reliability that have made it an industry leader for more than 40 years. Through the Telstar and Loral Global Alliance satellite fleets, its established hybrid VSAT/fiber global network infrastructure and its range of satellite, network and professional services, Skynet offers a unique, single source for all satellite-enabled broadcast, data network, Internet access and IP 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.