BEDMINSTER, NJ - September 3, 2003 - Loral Skynet do Brasil, Ltd., a wholly owned subsidiary of Loral Space & Communications (OTCBB: LRLSQ), has signed an agreement with Rede TV, one of Brazil's largest television networks, to provide satellite capacity on Telstar 12 for coverage of Campos do Jordão, Brazil's winter festival held throughout the country during June, July and August, and for Championship Auto Racing Teams' (CART) events throughout Brazil.

For Campos do Jordão, Loral Skynet do Brasil transmitted programming from three to ten hours several times per week, including interviews, fashion shows, celebrity performances and entertainment games. The transmissions were broadcast live from Campos do Jordão venues in Ku-band on Telstar 12 and the customer retransmitted from São Paulo in C-band for distribution throughout Brazil.

"We are very happy with the service we receive from Loral Skynet do Brasil," said Wagner Victoria, technical director, Rede TV. "We are working to develop new live programming projects and look to Loral Skynet do Brasil to provide the coverage our growing company requires."

CART auto racing events will be broadcast from Telstar 12 each weekend through the end of the year. From racetracks around the world, Brazilian viewers enjoy CART's open-wheel "Champ Cars," thoroughbred racing machines that reach speeds in excess of 200 miles per hour.

According to Terry Hart, president, Loral Skynet, a subsidiary of Loral Space & Communications, "We are pleased that we can assist Rede TV with their innovative television programming in Brazil. The flexibility we can offer to them for their long-term occasional use services makes it easy for Rede TV to schedule on-the-spot live programming whenever they need it."

Telstar 12, a satellite of Loral Skynet, 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 newsgathering, business television, high-speed Internet access and private networking services.

Loral Skynet do Brasil, Ltd., a wholly owned subsidiary of Loral Space & Communications, is the first private Brazilian satellite company offering Ku-band services, formed primarily to address opportunities in the fixed satellite services market in Brazil and South America. Loral Skynet do Brasil's first satellite, Estrela do Sul 1, will be launched in early 2004 into Brazil's 63 degrees West longitude orbital slot. The company has a ground station in Rio de Janiero that will provide tracking, telemetry, and control and access management from in-country technical staff. Loral Skynet do Brasil has access to a global fleet of satellites and terrestrial resources through the Loral Global Alliance. Loral Skynet do Brasil is the legal representative for Telstar capacity in Brazil.

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. With its fleet of satellites and its established hybrid VSAT/fiber global network infrastructure, Skynet offers a unique, single source for all 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.

Rede TV, a national Brazilian public television network, is one of the largest television networks in Brazil. Currently, they have the third largest viewing audience and in three years have increased their coverage by 480%, jumping from 5 to 29 affiliate stations and covering more than 85% of the nation, which represents about 3,500 municipalities throughout Brazil. For more information, visit http://www.redetv.com.br/.

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. These factors include those related to the filing, on July 15, 2003 by Loral and certain of its subsidiaries, of voluntary petitions for reorganization under Chapter 11 of Title 11 of the United States Code in the United States District Court for the Southern District of New York and parallel insolvency proceedings in the Supreme Court of Bermuda in which certain partners of KPMG were appointed as joint provisional liquidators. Additional factors and conditions are also 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.