BEDMINSTER, NJ - April 15, 2004 - Loral Skynet today announced that it has successfully completed service trials with several customers on SkyReach, Skynet's Internet Protocol (IP) enabled product that provides two-way broadband services for secure private networks or high-speed Internet access.

"SkyReach allows large organizations to create an instant infrastructure for a network that can connect users within a city or around the globe and extend the WAN to 100 percent coverage in areas underserved by broadband terrestrial communications," said Terry Hart, president, Loral Skynet. "Skynet is one of the few companies that can offer this carrier class service completely on its own integrated network of satellites, teleports and fiber resources, providing quality service and network reliability."

During 2003 and early 2004, Loral Skynet partnered with numerous users, including large corporations and government agencies, to test and deliver applications such as:

• Multicasting of large media files - effectively delivered at rates of 2 Mbps on the forward link and 128 Kbps on the return channel.
• Security and surveillance - remotely monitored video signals using forward link rates of up to 2 Mbps with 64 Kbps return link.
• Remote office connectivity - delivered corporate communications over the Internet using Virtual Private Network (VPN) and Voice over IP (VoIP).
• Distance learning - utilized satellite-based multicast and unicast features over the Internet to enable troop communications between military bases using high-bandwidth rates.

Loral Skynet will conduct demonstrations of SkyReach at next week's 2004 National Association of Broadcaster's show in Las Vegas. Visit Loral Skynet at the Las Vegas Convention Center (booth number C12339) during NAB 2004 from April 19-22, 2004.

SkyReach will offer a number of services that complement existing frame relay and multi-protocol label switching (MPLS) networks and offer efficient network management. SkyReach is optimized to provide a common platform on which to converge data, voice and video needs onto a single secure IP network. This SkyReach service uses a digital video broadcast-return channel via satellite (DVB-RCS) hub platform from EMS Technologies, an open-standards platform that has the advantages of higher return speeds and interoperability of equipment.

Designed for companies that need broadband communications over the Internet or secure private networks, SkyReach overcomes the limitations of terrestrial systems to extend the wide-area network (WAN) to office locations in areas with limited terrestrial connectivity. Flexible, scaleable and easily deployed, SkyReach offers both one-way and two-way services to support high-speed IP applications, access to local area network resources and Internet services across the entire WAN.

The rollout of SkyReach's two-way services is scheduled for the second quarter of 2004, and will offer forward speeds up to 2 Mbps and return speeds of up to 512 Kbps throughout the Americas on Telstar 12 and IA-7 (formerly Telstar 7). Higher return speed options will be available in later versions. Skynet will roll out SkyReach services in Europe and Asia later in 2004.

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 satellite fleet, and in combination with its established hybrid VSAT/fiber global network infrastructure, Skynet is a source for all broadcast, data network, Internet access, IP and systems integration needs. Headquartered in Bedminster, New Jersey, Loral 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 (OTC BB: LRLSQ) 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, 2003, entitled "Commitments and Contingencies," and the company's other filings with the Securities and Exchange Commission. The reader is specifically referred to these documents.