BEDMINSTER, NJ - June 14, 2004 - Loral Skynet today announced that it has renewed an agreement with HBO Pacific Partners, V.O.F., to distribute the region's leading entertainment channels, HBO and Cinemax, across Asia through its television arm HBO Asia. In accordance with the long-term agreement, Loral's Telstar 10 satellite will continue to distribute HBO Asia's programming to thousands of cable outlets across Asia.

"We welcome this significant service renewal by HBO for the distribution of quality video broadcast services to its audiences in Asia," said Terry Hart, president, Loral Skynet. "Telstar 10 hosts a robust video neighborhood over Asia, attracting the region's top programmers and when Telstar 18 joins the fleet in the next few weeks, Loral's extensive coverage of Asia will stretch from Europe to Australia and Hawaii."

Singapore-based HBO Asia brings the best of Hollywood to Asia through its exclusive first-run licensing deals with major Hollywood studios including Columbia Tri/Star, DreamWorks, Paramount Pictures, Universal Studios and Warner Bros. In addition to proprietary and award-winning HBO Original programming produced exclusively for its viewers, HBO Asia works with a number of prominent independent studios to secure exclusive rights to a host of quality movies. HBO Pacific Partners, V.O.F. is a joint venture of media giants Paramount Films, Sony Pictures Entertainment, Time Warner and Universal Studios.

Launched in 1997, Telstar 10 is located at 76.5 degrees East longitude and carries 27 C-band and 24 Ku-band transponders (36 MHz equivalents). The C-band payload provides coverage of Asia, Australia, parts of Europe and Africa. The Ku-band payload covers Korea, Taiwan, Macau and China, including Hong Kong. Telstar 10, which hosts one of the most extensive cable neighborhoods in Asia, distributes cable TV programming, direct-to-home services, and telecommunications, as well as Internet and VSAT (very small aperture terminal) services.

Joining Telstar 10 over Asia will be Telstar 18, set to launch aboard a Sea Launch rocket late this month. Telstar 18, which will be located at 138 degrees East longitude, is equipped with 19 C-band transponders at 36 MHz and 8 Ku-band transponders at 54 MHz. The C-band covers Asia, Australia, New Zealand, the Pacific islands and Hawaii and the Ku-band reaches China, India, Taiwan, Hong Kong and Korea. Its main markets will be cable programming, direct-to-home broadcasting, Internet, VSAT, and IP-based two-way services within Asia while providing an inter-connect to the US.

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.